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HomeMy WebLinkAboutAgenda Packet - February 28, 1996 - CC illikot 0 OF AZUSA Finance Dept. *213 E. Foothill Blvd *P.O. Box 1395 *Azusa, California 91702 Telephone : (818) 812-5203 *FAX(818) 334-6358 AGENDA ITEM TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL AA FROM: GEOFF CRAIG, DIRECTOR OF FINANCE' VIA: HENRY GARCIA, CITY ADMINISTRATOR DATE: FEBRUARY 28, 1996 SUBJECT: AMENDMENT TO PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT TO RECOGNIZE MILITARY SERVICE AS CREDIT FOR PUBLIC SERVICE Background As part of the negotiations which culminated in the five-year contracts with the various bargaining units, Management agreed that the PERS Military Service Credit Purchase Plan shall be made available to full time regular miscellaneous employees who have completed their initial probation period with the City. After the completion of the contract amendment, eligible employees with qualifying military service will be able to contact PERS to arrange to be billed for the service credit. The City will pay the first 25% for ACEA employees and will offer payroll deduction. Findings A PERS member may elect to purchase up to four years of service credit for any continuous active military or merchant marine service prior to employment. The member must contribute an amount equal to the contribution for current and prior service that the employee and the employer would have made with respect to that period of service. The member's payment will be calculated by PERS based upon the employer's contribution rate at the time of the member's election, and the member's compensation and contribution rate at the first period of service with the employer after the military service. Interest on both employer and employee contributions will be calculated from the date of membership with the current employer .. 3///91.. � 1 Honorable Mayor and Members of the City Council February 28, 1996 Page 2 to date of the member's election, and included in the member cost. The member may pay for the service in lump sum or by monthly payments not to exceed 96 months. This benefit applies only to active members while in employment with an employer providing this benefit in its contract. Employer Cost: No valuation required. Actual costs will emerge in future valuations. Member Cost: It is not uncommon for the cost to the member to exceed $5,000 for each year of military service. After the contract has been amended, the member may obtain cost information by contacting Member Services Division. The City of Azusa estimates that it has approximately twenty (20) employees that might qualify and that its cost will be approximately $25,000. Funds are budgeted in the current budget under the allowance for collective bargaining contracts. Recommendation Staff recommends that Council conduct the second reading and adopt the Ordinance Authorizing 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. GJC:pap f:coimci1\milsvcor.cn1 RESOLUTION NO. 96-C18 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF AZUSA WHEREAS, the Public Employees' Retirement Laws permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS,one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a Resolution giving notice of its intention to approve an amendment to said contract, which Resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: "To provide Section 20930.3 (Military Service as Public Service) for local miscellaneous members only." NOW, THEREFORE, BE IT RESOLVED that: Section 1. The City Council of the City of Azusa does hereby give notice of intention to approve an amendment to the contract between the said governing body and the Board of Administration of the Public Employees'Retirement System, a copy of said amendment being attached hereto, as an "exhibit" and by this reference made a part hereof. Section 2. The City Clerk shall certify to the adoption of the Resolution. APPROVED AND ADOPTED this 5th day of February , 1996. `> � t AYOR I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 5th day of February , 1996 by the following vote of Council: AYES: COUNCILMEMBERS: Hardison,Madrid,Naranjo,Beebe,Alexander NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None /2 / �/jam / C.. � / 77:// � i7.:ITYCLERK ‘� foran«\per,nsvc.res EXHIBIT 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, 1949, 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 and June 30, 1995, 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 hereafter 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 PLEASE DO ! ' ON 'E "'!BIT ONLY' 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 20930.3 (Military Service Credit as Public Service), Statutes of 1976 for 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 CCAICIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE 41S CITY OFA -IMSA OC7 BY a0 BY CHIEF ACTUAI X Presiding Officer' ACTUARIAL d1~FICE { :. PUBLIC EMPLOYEES,' RETIREMENT SYSTEM e'1' f`• F Witness Date 7� 9 Attest: AMENDMENT Clerk PERS-CON-702A (Rev. 1/96) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial Office Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916)326-3420 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting of the CITY COUNCIL (governing body) of the CITY OF AZUSA public agency) on FEBRUARY 5, 1996 which is at least two weeks prior to the adoption of the (date) Resolution/Ordinance. /. , Date ` ' 4 Clerk/Secr ry CITY CLERK Title PERS-CON-12A(rev.5/95) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial Office Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the CITY COUNCIL of the (governing body) CITY OF AZUSA (public agency) on FEBRUARY 5, 1996. . (date) Clerk/Se eta CITY CLERK Title PERS-CON-12(rev.5/95)