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CONTRACT 537NN AmendmentAgreement No. 537NN Ca1PERS California Public Employees' Retirement System \:\ a \lid) 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: K 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: Agreement No. 537NN 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 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. Agreement No. 537NN 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 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). Agreement No. 537NN 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), Agreement No. 537NN 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 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. 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. Agreement No. 537NN From and after June 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. 16. 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. Agreement No. 537NN 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. qq�'� B. This amendment shall be effective on the � � day of /b ` , 1pi�L- BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF EL SEGUNDO MELODY BENAVIDES, CHIEF PENSION CONTRACTS AND PREFUNDING PROGRAMS DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT CaIPERS ID #2657082556 PERS-CON-702A BY PRESIDI 6 FFICER � % t�4- 1))7k Witness Date Attest: Clerk