CC RESOLUTION 4893RESOLUTION INTENTION No. 4893
O APPROVE AN AMENDMENT TO CONTRACT
WHEREAS, 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 amendments
to said Lave; 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 end Section 20516 (3% Employees Sharing Cost of Additional Benefits)
applicable to Section 21363.1 (3% @ 55 Full formula) for classic local fire
members; and
To provide Section 20516 (Employees Sharing Additional Cost) of 3% for
classic local fire members in the Supervisory and Professional Employees
Association, and the Unrepresented Fire Management Group.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does
hereby give notice of intention to approve an amendment to the contract
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Employees' Retirement System, a copy of said amendment being attached
hereto, as an "Exhibit" and by this reference made a part hereof.
11-Li- Y
Date adopted and approved
(Amendment) CaIPERS ID# 2657062556
CON -302 (Rev. 4196)
By:
resid' g Officer
►1/l ay or
Title
Ca1PER5
r:
California
Public Employees' Retirement System
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, 1 997, 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, 2012 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 terns 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 entering membership in
the miscellaneous classification on or prior to December 30, 2012, age 60
for local miscellaneous members entering membership for the first time in
the miscellaneous classification after December 30, 2012, age 50 for local
police members entering membership in the police classification on or
prior to October 6, 2012, age 55 for local fire members and for those 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
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 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 - 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 Califomia 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 EXCLUSION
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 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 SPCUrity f20/. at anP 55 Hill and Mnrlifiarh
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 21363.1 of said Retirement Law
(3% at age 55 Full).
10. Thy p_. _` e c entage of, als fin compensation to be provided for each year of
U. A -1 a e ;;h^r entering
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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).
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).
g. 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).
j. 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 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 21353,1 (3%
@ 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% @ 60 Modred formula) is applicable to local
miscellaneous members entering membership for the first time in
the miscellaneous classification after December 30, 2012.
Section 20516 (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
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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.
! 5, 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 sµld Retirement Law.
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 BY
RENEE OSTRANDER, ACTING CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS 10 #2857082558
PERS- CON -702A