CONTRACT 537KK AmendmentAgreement No. 537KK
California
Public Employees' Retirement System
Between the.
Board of Administration
California PublicEmployees' Retirement System
and the
City Council
City of E1 Segundo
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective
October 1, 1943, and witnessed August 25, 1943, and as amended effective November
1, 1947, August 1, 1949, July 1, 1950, November 1, 1955, September 1, 1958, March 9,
1969, November 7, 1964, October 19, 1968, December 11, 1971, July 20, 1974, July
19, 1975, January 3, 1976, July 16, 1977, June 3, 1978, February 6, 1982, April 3,
1982, January 1, 1992, June 27, 1992, May 15, 1993, January 8, 1994, January 19,
1996, April 4, 1997, October 13, 1997, October 7, 2000, December 18, 2000, May 19,
2001, July 2, 2004, April 12, 2008, May 9, 2009, October 3, 2009, October 23, 2010,
October 6, 2012, December 30, 2012, December 13, 2014, January 9, 2016 and June
8, 2019 which provides for participation of Public Agency In said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs 1 through 18 are hereby stricken from said contract as executed
effective June 8, 2019, and hereby replaced by the following paragraphs
numbered 1 through 18 inclusive:
Agreement No. 537KK
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 classic local miscellaneous members entering
membership in the miscellaneous classification on or prior to December
30, 2012, age 60 for classic local miscellaneous members entering
membership for the first time in the miscellaneous classification after
December 30, 2012, age 62 for new local miscellaneous members, age 50
for classic local police members entering membership in the police
classification on or prior to October 6, 2012, age 55 for classic local fire
members and for those classic local police members entering membership
for the first time in the police classification after October 6, 2012 and age
57 for new local safety members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after October 1, 1943 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. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, the CaIPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorney fees that
may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non-CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' existing
retirement benefits, provisions or formulas.
Agreement No. 537KK
(c) Public Agency's agreement with a third party other than
CaIPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for under
the California Public Employees' Retirement Law.
4. 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).
5. 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
6. 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 superseded 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.
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
entering membership in the miscellaneous classification on or prior to
December 30, 2012 shall be determined in accordance with Section
21354 of said Retirement Law subject to the reduction provided therein for
service on and after July 1, 1956, the effective date of Social Security
coverage, for members whose service has been included in Federal
Social Security (2% at age 55 Full and Modified).
8. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member entering
membership for, the first time with this agency in the miscellaneous
classification after December 30, 2012 shall be determined in accordance
with Section 21353 of said Retirement Law subject to the reduction
provided therein for Federal Social Security (2% at age 60 Modified).
Agreement No. 537KK
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said
Retirement Law (2% at age 62 Supplemental to Federal Social Security).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local fire member shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local police member
entering membership in the police classification on or prior to October 6,
2012 shall be determined in accordance with Section 21362.2 of said
Retirement Law (3% at age 50 Full).
12. The percentage of final compensation to be provided for each year of
credited current service as a classic local police member entering
membership for the first time with this agency in the police classification
after October 6, 2012 shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
13. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57, Full).
14. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624 and 21626 (Post -Retirement Survivor Allowance)
for local safety members only,
b. Section 21571 (Basic Level of 1959 Survivor Benefits) for local
miscellaneous members only.
C. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
d. Section 21222.2 (One -Time 5% Increase - 1971). Legislation
repealed said Section effective January 1, 1980.
e. Section 21024 (Military Service Credit as Public Service).
Section 20042 (One -Year Final Compensation) for classic
members only.
Agreement No. 537KK
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safety members only.
h. Section 21548 (Pre -Retirement Option 2W Death Benefit).
Section 20903 (Two Years Additional Service Credit).
j. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21363.1 (3% @ 55 Full and Modified formula) for classic
local fire members from and after October 6, 2012 and until
December 13, 2014.
The employee cost sharing contributions are 3%. The maximum
employee cost sharing contribution is the normal cost plus the
increase in the accrued liability due to the benefit improvement
amortized over 20 years. In no event shall the employee cost
sharing contribution attributable to the unfunded liability remain in
effect beyond May 19, 2021. Thereafter, in any given contribution
year, the maximum employee cost sharing contribution cannot
exceed 2.591 % of payroll.
k. Section 20475 (Different Level of Benefits): Section 21363.1 (3%
@ 55 Full formula) is applicable to classic local police members
entering membership for the first time with this agency in the police
classification after October 6, 2012.
Section 21353 (2% @ 60 Modified formula) is applicable to classic
local miscellaneous members entering membership for.the first time
with this agency in the miscellaneous classification after December
30, 2012.
Section 20516 (Employees Sharing Additional Cost):
From and after December 13, 2014 and until January 9, 2016, 3%
for classic local fire members in the Supervisory and Professional
Employees Association, and the Unrepresented Fire Management
Group.
From and after June 8, 2019, 3% for classic local police members
in the El Segundo Police Officers' Association.
From and after June 8, 2019, 3% for classic local fire members in
the El Segundo Firefighters' Association.
Agreement No. 537KK
From and after the effective date of this amendment to contract, 1 %
for classic local miscellaneous members in the Unrepresented
Management -Confidential Group.
From and after the effective date of this amendment to contract, 3%
for classic local safety members in the Unrepresented Management
-Confidential Group.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall
not exceed the Employer Normal Cost Rate, as that rate is defined
in the CaIPERS Actuarial Valuation for the relevant fiscal year. If
the Cost Sharing Percentage will exceed the relevant Employer
Normal Cost Rate, the Cost Sharing Percentage shall automatically
be reduced to an amount equal to, and not to exceed, the Employer
Normal Cost Rate for the relevant fiscal year.
15. 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.
16. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 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 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,
17. 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.
Agreement No. 537KK
18. 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.
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B. This amendment shall be effective on the day of d (Xif
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY r wG�<:I�c.a,RQr2rYz°tr�rtar�h
AR.
NITA PAIGE, CHIEF
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT CaIPERS ID 02657062556 PERS-CON-702A
CITY COUNCIL
CITY OF EL SEGUNDO
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P ESI OFFICER
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Witness Date
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