HomeMy WebLinkAboutAgenda Packet - May 23, 1996 - CC viejiGuaz
MEMORANDUM
TO: HONORABLE MAYOR& MEMBERS OF E CITY COUNCIL
I
FROM: GEOFF CRAIG, DIRECTOR OF FINANCE '
VIA: HENRY T. GARCIA, CITY ADMINISTRATO ' ‘,
DATE: MAY 23, 1996
SUBJECT: RECISION AND READOPTION OF AMENDMENT TO PERS
CONTRACT
Background
At the May 6 Regular Meeting, Council adopted an Ordinance,that was introduced on April 15,
that approved an amendment to the City's contract with the Public Employees' Retirement
System with regard to inclusion in base pay during the final compensation period of the employer-
paid member contribution. Although staff requested instructions from PERS nearly seven months
ahead of time, the City did not receive them until after the Ordinance was adopted. The
instructions seem to require a longer time period between introduction and passage of the
Ordinance. This report recommends that Council rescind its May 6 action, instead simply
receiving and filing the accompanying information as presented, and adopt the Ordinance as of
June 3.
Recommendations
Staff recommends that Council:
1. Rescind the May 6 action in which Council adopted an Ordinance Approving an
Amendment to the Contract Between the City of Azusa and the Public Employees'
Retirement System, instead only receiving and filing the accompanying information
as presented, and
2. Adopt the Ordinance Approving an Amendment to the Contract Between the
City of Azusa and the Public Employees' Retirement System as of June 3, 1996.
ORDINANCE NO. 96-03
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE
CITY COUNCIL OP THE CITY OF AZUSA AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
THE CITY COUNCIL OF THE CITY OF AZUSA does ordain as follows:
SECTION 1. That an amendment to the Contract between the City Council of the City of
Azusa and the Board of Administration of the California Public Employees' Retirement System is
hereby authorized, a copy of said amendment being attached hereto marked "Exhibit A", and by
such reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the City of Azusa is hereby authorized, empowered and
directed to execute said amendment for and on behalf of the said agency.
SECTION 3. This Ordinance shall take effect thirty(30)days after the date of its adoption,
and prior to the expiration of fifteen(15) days from passage thereof shall be published at least once
in the Azusa Herald, a newspaper of general circulation, published and circulated in the City of
Azusa and thenceforth and thereafter the same shall be in full force and effect.
PASSED AND APPROVED this Eth day of May 1996
at.,(94\--
MAYOR
I,ADOLPH SOLIS, City Clerk of the City of Azusa, do hereby certify that the foregoing
Ordinance No. 96-03 was regularly introduced and placed upon its first reading at a meeting
of the City Council on the 15th day of April, 1996. That thereafter said Ordinance was duly adopted
and passed at a regular/special meeting of the City Council on the 6th day of
May , 1996 by the following vote, to wit:
AYES COUNCILMEMBERS: Hardison,Madrid,Naranjo,Beebe,Alexander
NOES COUNCILMEMBERS: None
ABSENT COUNCILMEMBERS: None
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EXHIBIT "A"
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL OF THE CITY OF AZUSA
The Board of Administration,Public Employees'Retirement System,hereinafter referred to as Board,and the
governing body of above public agency, hereinafter referred to as Public Agency, having entered into a
contract effective January 1, 19949,and witnessed December 20, 1948,and as amended effective July 1, 1956,
September 1, 1958,March 2, 1959,May 1, 1960,September 3, 1967,December 22, 1968,July 15, 1973,April
20, 1975,January 18, 1981,July 1, 1984,January 12, 1986,February 7, 1988,November 27, 1988,April 5,
1994, June 30, 1995 and April 4, 1996,which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective June 30, 1995,
and hereby replaced by the following paragraphs numbered 1 through 14 inclusive:
1. All words and terms used herein which are defined in the Public Employees' Retirement Law
shall have the meaning as defined therein unless otherwise specifically provided. "Normal
retirement age"shall mean age 55 for local miscellaneous members, age 55 for local fire
members and age 50 for local police members.
2. Public Agency shall participate in the Public Employees' Retirement System from and after
January 1, 1949 making its employees as hereinafter provided, members of said System
subject to all provisions of the Public Employees' Retirement Law except such as apply only
on election of a contracting agency and are not provided for herein and to all amendments to
said Law hereinafter enacted except those,which by express provisions thereof,apply only
on the election of a contracting agency.
3. Employees of Public Agency in the following classes shall become members of said
Retirement System except such in each such class as are excluded by law or this agreement:
a. Local Fire Fighters(herein referred to as local safety members);
b. Local Police Officers(herein referred to as local safety members);
c. Employees other than local safety members(herein referred to as local miscellaneous
members).
4. In addition to the classes of employees excluded from membership by said Retirement Law,
the following classes of employees shall not become members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
5. Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or
seasonal basis not to exceed 6 months were excluded from PERS membership by contract.
Government Code Section 20336 supersedes this contract provision by providing that any such
temporary and/or seasonal employees are excluded from PERS membership subsequent to January
1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305
effective July 1, 1994.
6. The percentage of final compensation to be provided for local miscellaneous members for each year
of credited prior and current service shall be determined in accordance with Section 21354 of said
Retirement Law, subject to the reduction provided therein for service on and after January 1, 1956,
the effective date of Social Security coverage, and prior to March 31, 1975, termination of Social
Security, for members whose service has been included in Federal Social Security (2% at 55 Full and
Modified).
7. The percentage of final compensation to be provided for each year of credited prior and current
service as a local fire member shall be determined in accordance with Section 21366 of said
Retirement Law (One-half pay at age 55 Full).
8. The percentage of final compensation to be provided for each year of credited prior and current
service as a local police member shall be determined in accordance with Section 21362 of said
Retirement Law(2% at age 50 Full).
9, Public Agency elected and elects to be subject to the following optional provisions:
a. Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance).
b. Section 21573 (Third Level of 1959 Survivor Benefits).
c. Section 20042 (One-Year Final Compensation) for local police members only.
d. Section 20903 (Two Years Additional Service Credit).
e. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members and local
police members only.
f. Section 21024 (Military Service Credit as Public Service), Statutes of 1976 for local
miscellaneous members only.
g. Section 20615.5(7% Employer Paid Member Contributions Converted to Payrate During the
Final Compensation Period local miscellaneous members only).
10. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for
purposes of Section 20834 effective on November 27, 1988. Accumulated contributions of Public
Agency shall be fixed and determined as provided in Government Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as provided in Government Code
Section 20834.
11. Public Agency shall contribute to said Retirement System the contributions determined by actuarial
valuations of prior and future service liability with respect to local miscellaneous members and local
safety members of said Retirement System.
12. Public Agency shall also contribute to said Retirement System as follows:
a. Public Agency shall contribute $2.00 per employee,per month on account of the
liability for the 1959 Survivor Benefits provided under Section 21573 of said
Retirement Law. (Subject to annual change.) In addition,all assets and liabilities
of Public Agency and its employees shall be pooled in a single account,based on
term insurance rates, for survivors of all local miscellaneous members and local
safety members.
b. A reasonable amount, as fixed by the Board,payable in one installment within 60
days of date of contract to cover the costs of administering said System as it affects
the employees of Public Agency,not including the costs of special valuations or of
the periodic investigation and valuations required by law.
c. A reasonable amount, as fixed by the Board, payable in one installment as the
occasions arise,to cover the costs of special valuations on account of employees of
Public Agency, and costs of the periodic investigation and valuations required by
law.
13. Contributions required of Public Agency and its employees shall be subject to adjustment by
Board on account of amendments to the Public Employees' Retirement Law,and on account
of the experience under the Retirement System as determined by the periodic investigation
and valuation required by said Retirement Law.
14. Contributions required of Public Agency and its employees shall be paid by Public Agency
to the Retirement System within fifteen days after the end of the period to which said
contributions refer or as may be prescribed by Board regulation. If more or less than the
correct amount of contributions is paid for any period,proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of errors in contributions
required of any employee may be made by direct payments between the employee and the
Board.
B. This amendment shall be effective on the day of , 19
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE
CITY OF AZUSA
BY BY
DIVISION CHIEF Presiding Officer
ACTUARIAL&EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
AMENDMENT
PERS-CON-702A(Rev.1/96) Clerk