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HomeMy WebLinkAbout6798_CCv0001.pdf RESOLUTION NO. 6798 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS PROVIDING NOTICE OF ITS INTENTION TO APPROVE AN AMENDMENT TO A CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF REDLANDS WHEREAS, the Public Employee's Retirement Law (the "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 the Law; 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 provide Section 20903 (Two Years Additional Service Credit) for local miscellaneous members and local safety members. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Redlands does hereby gave notice of its intention to approve an amendment to the contract between the City and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto as an Exhibit "A" and by this reference made a part hereof. ADOPTED, SIGNED AND APPROVED this 2nd day of December, 2008. Jo arrison, Mayor ATTEST: Cd Clerk, t f edlands [Acclerk\Resolutions\6798 PERS Aniendment.doc I, Lorrie Poyzer, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 2nd day of December, 2008 by the following vote: AYES: Councilmembers Gilbreath, Gallagher, Aguilar, Bean, Mayor Harrison NOES: None ABSENT: None ABSTAIN: None i City,- erk, city e ands 1:1cc1erk\Reso1utions\ 798 PERS Amendment.doc CaIPEIS EXHIBIT "All California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees ' Retirement System and the City Council City of Redlands 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 July 1 , 1945, and witnessed June 1, 1945, and as amended effective January 1, 1953, August 1, 1956, March 1, 1957, January 1, 1960, August 1, 1961, January 1 , 1969, Agust 16, 1969, May 16, 1973, April 25, 1974, September 22, 1975, July 12, 1976, February 18, 1980, April 11, 1983, October 24, 1983, June 29, 1987, November 19, 1999, January 10, 2000, April 5, 2001, January 3, 2005 and April 11, 2005 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows- A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective April 11, 2005, and hereby replaced by the following paragraphs numbered 1 through 12 inclusive. 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 local miscellaneous members and age 50 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945 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. 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). 4. 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: a. PERSONS COMPENSATED ON AN HOURLY BASIS HIRED ON OR AFTER JANUARY 1, 1969. 5. The percentage of final compensation to be provided for each year of credited prior and current service for local miscellaneous members shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service on and after January 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). 6. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. Section 21222.1 (One-Time 5% Increase - 1970). Legislation repealed said Section effective January 1 , 1980. b. Section 21222.2 (One-Time 5% Increase - 1971). Legislation repealed said Section effective January 1, 1980. C. Sections 21624 and 21626 (Post-Retirement Survivor Allowance). d. Section 20614, Statutes of 1978, (Reduction of Normal Member Contribution Rate). From February 18, 1980 and until April 11, 1983, the normal local miscellaneous member contribution rate shall be 0%. Legislation repealed said Section effective September 29, 1980. From February 18, 1980 and until October 24, 1983 the normal member contribution rate shall be 7% for local fire members and 6% for local police members. Legislation repealed said Section effective September 29, 1980. e. section 20690, Statutes of 1980, (To Prospectively Revoke Section 20614, Statutes of 1978). f. Section 20042 (One-Year Final Compensation). g. Section 21024 (Military Service Credit as Public Service). h. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members and local fire members only. i. Section 20903 (Two Years Additional Service Credit). 8. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on February 18, 1980. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 9. 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. 10. 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. 11. 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. 12. 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 REDLANDS BY BY LORI MCGARTLAND, CHIEF PRESIDING OFFICER EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk AMENDMENT ER#0078 PERS-CON-702A(Rev. 10105) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (abs) CalPERS (225-7377) CERTIFICATION OF GOVERNING BODY'S ACTION hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the of the (governing body) (public agency) on (date) Clerk/Secretary Title PERS-CON-12 (rev. 1196) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CaIPERS (225-7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 1 hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary for the increase in retirement benefit(s) have been made public at a public meeting of the of the (governing body) (public agency) on (date) which is at least two weeks prior to the adoption of the Resolution / Ordinance. Clerk/Secretary Title Date PERS-CON-12A(rev. 1196) Actuarial andEmployerServices Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 20903 In accordance with Government Code Section 20903 and the contract between the Public Employees' Retirement System, the City Council of the City of Redlands hereby certifies that: 1. Because of an impending curtailment of, or change in the manner of performing service, the best interests of the agency will be served by granting such additional service credit. 2. The added cost to the retirement fund for all eligible employees who retire during the designated window period will be included in the contracting agency's employer contribution rate for the fiscal year that begins two years after the end of the designated period. 3. It has elected to become subject to Section 20903 because of impending mandatory transfers, demotions, and layoffs that constitute at least 1 percent of the job classification, department or organizational unit, as designated by the governing body, resulting from the curtailment of, or change in the manner of performing, its services. 4. Its intention at the time Section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled thereby resulting in an overall reduction in the work force of such department or organizational unit. THEREFORE, the City Council of the City of Redlands hereby elects to provide the benefits of Government Code Section 20903 to all eligible members who retire within the designated period, through CITY COUNCIL OF THE CITY OF REDLANDS By: Presiding Officer Attest: Clerk/Secretary Date 2yr certification-PA(Rev. 4104)