ORDINANCE 1498ORDINANCE NO. 1498
AN URGENCY ORDINANCE ADOPTED IN ACCORDANCE WITH
GOVERNMENT CODE § 36937(B) APPROVING AN AMENDMENT TO
AN AGREEMENT WITH THE CALIFORNIA PUBLIC EMPLOYEES
RETIREMENT SYSTEM.
The City Council of the City of El Segundo does ordain as follows:
SECTION 1: The City Council finds and determines it is in the public interest to
adopt this ordinance on an urgency basis for the purpose of preserving the public
welfare.
SECTION 2: The Amendment attached as Exhibit "A," and incorporated by
reference, is approved. The City Manager, or designee, is authorized to execute the
Amendment and all ancillary documents required to implement the Amendment.
SECTION 3: If any part of this Ordinance or its application is deemed invalid by a
court of competent jurisdiction, the city council intends that such invalidity will not affect
the effectiveness of the remaining provisions or applications and, to this end, the
provisions of this Ordinance are severable.
SECTION 4: The City Clerk is directed to certify the passage and adoption of this
Ordinance; cause it to be entered into the City of El Segundo's book of original
ordinances; make a note of the passage and adoption in the records of this meeting;
and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it
to be published or posted in accordance with California law.
SECTION 5: This Ordinance will become effective immediately upon adoption
pursuant to Government Code § 36937(b) for the immediate preservation of the public
naara hanith cnfaty and %niaifnra Arrnrrlinniv thic r)rHinnnra is nrinntari by n fni ir_
fifths vote.
PASSED AND ADOPTED this 4nd day of November, 2014.
mw-6�
Suzanne Fuentes, Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
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 Urgency
Ordinance No. 1498 was duly passed and adopted by said City Council, approved and signed by
the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the
41h day of November, 2014, and the same was so passed and adopted by the following vote:
AYES: Fuentes, Jacobson, Atkinson, Fellhauer, Dugan
NOES: None
ABSENT: None
ABSTAIN: None
Qh&4v �jz 2�-
Tracy Weayyr, City Clerk
APPROVED AS TO FORM:
VrL4 hnv i n < i", r-,-.n
Mark D. s ey, City Attorney
t{'
r r.
California
Public Employees' retirement System
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 and December 30, 2412 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed
effective December 30, 2012, and hereby replaced by the following paragraphs
numbered 1 through 16 inclusive:
All words and terms used herein which are defined in the Public
Emniovees' Retirement law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 66 for local miscellaneous members entering membership in
the miscellaneous classification on or `rrior
to ecQmb r 330, 2012, age 60
for local miscellaneous members entering membership for the first time in
the miscellaneous classification after December 30, 2012, age 60 for local
police members entering membership in the police classification on or
prior to October 6, 2712, age 66 for local fire members and for these local
police members entering membership for the first time in the police
classification after October 6, 2012.
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
Ule Public Employees' Retirement Laud 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 (CalPERS) and its
trustees, agents and employees, the CalPERS 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 attorneys 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- CalPERS 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
CalPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for hinder
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:
B. 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 duly
1, 1994.
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a 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 f20/. at aap Frill anri Mnrlifarh
8, The percentage of final compensation to be provided for each year of
credited current service as a 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 local fire member shall be
determined in accordance with Section 21353.1 of said Retirement Law
(3% at age 55 Full).
hp nPrnr-n.+Pn;- of finn! :0;nne-,!_c;a'-.-r!_ nro-Oled for =acl- vear of
cr�rfl+=A m.-*^- mn.A —=Ml S_ nf
pi—i _ --itNit v=.Vluw Q 211- L;�;
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
ynil/
1,070 at age 50 Full')-
11. The percentage of final compensation to be provided for each year of
credited current service as a 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).
12. 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).
9- Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safety members only.
h. Section 21548 (Pre-Retirement Option 2W Death Benefit).
i. Section 20903 (Two Years Additional Service Credit).
1. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21353.1 (3% @ 55 Full and Modified formula) for local fire
members from and after October 6, 2012 and until the effective
date of this amendment to contract.
The employee cost sharing contributions are 3 %. The maximum
employee cast 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%
�°3a 55 Full formula) is applicable to local police members entering
membership for the first time in the police classification after
October 6, 2012.
Section 21353 (2% r@ 60 Modified formula) is applicable to local
miscellaneous members entering membership for the first time in
the miscellaneous classification after December 30, 2012.
Section 26516 (Employees Sharing Cost of Additional Benefits):
From the effective date of this amendment to contract, 3% for
classic local fire members in the Supervisory and Professional
Employees Association, and the Unrepresented Fire Management
Group.
13. 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.
14. Public Agency shall also contribute to said Retirement System as follows:
a= Contributions required per covered member on account of the 1959
CiinAvnr Ranafiio nre%AAr4=A rinel ar Cnr +6rr. 7-1=7a --f --.-I
-- • -• -w• •— �- •_- -•••�- P....._+�.-.: :.;sous v-.::vcv:+ y;.::T vi dua+.s T`ti.%iis.iiicciei
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 casts of
the periodic investigation and valuations required by law.
ibutions required of Pub!-, agpnny :;nri i Q eMnlov ;= Q
Contr' - 1 aM--J -- it- 1. e_s -hall be
subject to arcl usta vent by Board -on ac-c-ount of al^ne: ardments. to the Public
Employees' Retirement Law, and on account of the experience under the
Reti ' rement System as determined by the periodic investigation and
-alza� Inn r.--rmhmij by ca-ld P=f'.-=r-n=nf 1 mw
16, 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
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF EL SEGUNDO
BY
HE IT, I
Witness Date
rffir4g
Clerk
AMENDMENT CaIPERS 10 #2657082555
PERS-CON-702A