CC RESOLUTION 5451RESOLUTION NO. 5451
A RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE
CITY COUNCIL CITY OF EL SEGUNDO
WHEREAS, (1) The Public Employees' Retirement Law 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 amendment to said Law; and
WHEREAS, (2) One of the steps in the procedures to emend 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, (3) The following is a statement of the proposed change:
To provide Section 20516 (Employees Sharing Additional Cost) of
1 % for classic local miscellaneous members in the El Segundo City
Employees' Association.
RESOLVED, (a) That the governing body of the above agency does hereby give
notice of intention to approve an amendment to the contract between
said public agency 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.
PASSED AND ADOPTED RESOLUTION NO. 5451 this 5t" day of December, 2023.
Drew Boy Mayor
ATTEST:
OR', - td 4wv�)
Tracy Weav m City Clerk
A27,D AS TO EQRM:
Mark D. Hensley, City Attrne
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF EL SEGUNDO
CERTIFICATION
SS
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. 5451 was duly passed, approved, and adopted by said City Council at a
regular meeting held on the 5t" day of December, 2023, approved and signed by the
Mayor, and attested to by the City Clerk, by the following vote:
AYES:
Mayor Boyles, Mayor Pr
o
Tem Pimentel, Council Member Pirsztuk,
and Council Member Baldino
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of December,
2023.
Tr Weaver, City Clerk
of the City of El Segundo,
California
California
Public Employees' Retirement System
ZVOK"111
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of El 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, 1959,
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, June 8, 2019, October 24,
2020, June 17, 2023, and October 21, 2023, 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 October 21, 2023, and hereby replaced by the following paragraphs
numbered 1 through 18 inclusive:
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.
(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).
& 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 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).
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 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).
f. Section 20042 (One -Year Final Compensation) for classic members
only.
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).
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 2.0 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.
I. 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.
From and after October 24, 2020, 1 % for classic local miscellaneous
members in the Unrepresented Management -Confidential group.
From and after October 24, 2020, 3% for classic local safety
members in the Unrepresented Management -Confidential group.
From and after .tune 17, 2023, 1% for classic local miscellaneous
members in the El Segundo Supervisory and Professional
Employees Association.
From and after October 21, 2023, 1 % for classic local miscellaneous
members in the El Segundo Police Support Services Employees
Association.
From and after the effective date of this amendment to contract, 1 %
for classic local miscellaneous members in the El Segundo City
Employees Association.
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
CalPERS 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.
1& Public Agency shall also contribute to said Retirement System as follows:
a. 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.
b. 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.
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.
B. This amendment shall be effective on the
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIEEMENT SYSTEM
BY
MELODY BENAVI
PENSION CONT
PROGRAMS DIVI
PUBLIC EMPLO)
'-HIEF
AND PREFUNDING
RETIREMENT SYSTEM
AMENDMENT CaIPERS ID #2657082556
PERS-CON-707A
day of
CITY COUNCIL
CITY OF EL SEGUNDO
BY
PRESIDING OFFICER +
.01
t
Witness Date ,
Attest:
Clerk