HomeMy WebLinkAbout2012-22 - Authorizing an Amendment to the Contract Between the Board of Administration of the California Public Employees’ Retirement System and the City Council of the City of Newport BeachORDINANCE NO. 2012-22
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF NEWPORT BEACH
WHEREAS, the City of Newport Beach and the Board of Administration of the California
Public Employees' Retirement System have entered into a contract effective July 1, 1945,
and amendments thereto, providing for participation by the City in the California Public
Employees' Retirement System;
WHEREAS, the Public Employees Retirement Law permits the amendment of the contract
following the adoption of a Resolution of Intent giving notice of the intent to approve an
Amendment to the Contract between the Board of Administration of the California Public
Employees' Retirement System and the City Council of the City of Newport Beach
("Amendment");
WHEREAS, on September 25, 2012, the City Council of the City of Newport Beach
adopted Resolution No. 2012-87 entitled "A Resolution of Intention to Approve an
Amendment to the Contract between the Board of Administration of the California Public
Employees' Retirement System and the City Council of the City of Newport Beach";
NOW THEREFORE, the City Council of the City of Newport Beach ordain as follows:
SECTION 1: That the Amendment to the Contract between the Board of Administration of
the California Public Employees' Retirement System and the City Council of the City of
Newport Beach ("Amendment") is hereby authorized, a copy of which Amendment is
attached hereto as "Exhibit", and is incorporated herein this reference.
SECTION 2: The Mayor of the City of Newport Beach is hereby authorized, to execute
the Amendment for and on behalf of the City.
SECTION 3: If any section, subsection, sentence, clause or phrase of this ordinance is,
for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this ordinance. The City Council
hereby declares that it would have passed this ordinance, and each section, subsection,
clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses and phrases be declared unconstitutional.
SECTION 4: This ordinance shall take effect thirty (30) days after its adoption, and
prior to expiration of fifteen (15) days from the passage thereof shall be published once
in the Daily Pilot, a newspaper of general circulation, published in Costa Mesa and
circulated in the City of Newport Beach, and thenceforth and thereafter shall be in full
force and effect.
SECTION 5: This ordinance was introduced at a regular meeting of the City Council of the
City of Newport Beach, held on the 25th_ day of September , 2012, and
adopted on the 23rdjay of October , 2012, by the following vote, to wit:
AYES, COUNCILMEMBERS Hill, Rosansky,Curry, Selich,Henn, Daigle, Mayor Gardner
NOES, COUNCILMEMBERS None
ABSENT
MA
ATTEST:
4W .
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
By: OYAA-- 1012411,
AARON C. HARP, CITY ATtORNEY
2
California
Public Employees' Retirement System
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EXHIBIT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Newport Beach
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 April 27, 1945, and as amended effective March 1, 1948,
November 1, 1951, April 1, 1956, October 31, 1970, September 18, 1971, December
11, 1971, September 24, 1977, December 18, 1977, June 17, 1978, March 24, 1979,
June 30, 1979, January 12, 1989, December 2, 1989, June 12, 1996, July 12, 2000,
August 26, 2000, June 15, 2002, November 30, 2002, November 13, 2004, July 23,
2005, December 22, 2007, March 15, 2008 and June 20, 2009 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree
as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective June 20, 2009, and hereby replaced by the following paragraphs
numbered 1 through 17 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 entering membership in
the miscellaneous classification on or prior to the effective date of this
amendment to contract and age 60 for local miscellaneous members
entering membership for the first time in the miscellaneous classification
after the effective date of this amendment to contract; age 50 for local fire
members, ocean beach lifeguards and those local police members
entering membership in the police classification on or prior to the effective
date of this amendment to contract and age 55 for local police members
entering membership for the first time in the police classification after the
effective date of this amendment to contract.
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. 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) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
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.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CaIPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
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. Ocean Beach Lifeguards (included as local safety members);
d. 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:
a. POLICE CADETS; AND
b. RESERVE OFFICERS.
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after December 22, 2007 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment on or after December 22, 2007 and not entering membership
for the first time in the miscellaneous classification after the effective date
of this amendment to contract shall be determined in accordance with
Section 21354.4 of said Retirement Law (2.5% at age 55 Full).
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 the
effective date of this amendment to contract shall be determined in
accordance with Section 21353 of said Retirement Law (2% at age 60
Full),
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local ,safety member entering
membership in the safety classification on or prior to the effective date of
this amendment to contract shall be determined in accordance with
Section 21362.2 of said Retirement Law (3% at age 50 Full).
10. The percentage of final compensation to be provided for each year of
credited current service as a local fire member entering membership for
the first time in the fire classification and ocean beach lifeguards entering
membership for the first time in the ocean beach lifeguard classification
after the effective date of this amendment to contract shall be determined
in accordance with Section 21362 of said Retirement Law (2% 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 the effective date of this
amendment to contract 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. Section 20421 ("Local Safety Member" shall include ocean beach
lifeguards of a city as described in Government Code Section
20421).
b. Section 21574 (Fourth Level of 1959 Survivor Benefits).
C. Section 21024 (Military Service Credit as Public Service).
d. Section 21389 (Second Opportunity to Elect 1959 Survivor
Benefits). Legislation repealed said Section effective September
27, 1979.
e.
h.
Section 20965 (Credit for Unused Sick Leave) for local
miscellaneous members only.
Section 20042 (One -Year Final Compensation) for local
miscellaneous members and local safety members entering
membership on or prior to the effective date of this amendment to
contract.
Section 21548 (Pre -Retirement Option 2W Death Benefit).
Section 20516 (Employees Sharing Cost of Additional Benefits) for
miscellaneous members entering membership on or prior to the
effective date of this amendment to contract:
Section 21354.4 (2.5% @ 55 Full formula) for local miscellaneous
members.
The employee cost sharing contributions are not to exceed 2.420%.
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 December 31, 2027. Thereafter, in
any given contribution year, the maximum employee cost sharing
contribution cannot exceed .838% of payroll.
Section 20475 (Different Level of Benefits). Section 21362 (2% @
50 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local fire members entering
membership for the first time in the fire classification and ocean
beach lifeguards entering membership for the first time in the ocean
beach lifeguard classification after the effective date of this
amendment to contract,
Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three -
Year Final Compensation) are applicable to local police members
entering membership for the first time in the police classification
after the effective date of this amendment to contract, and
Section 21353 (2% @ 60 Full formula) and Section 20037 (Three -
Year Final Compensation) without Section 20516 (Employees
Sharing Cost of Additional Benefits) are applicable to local
miscellaneous members entering membership for the first time in
the miscellaneous classification after the effective date of this
amendment to contract.
13. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
September 24, 1977. 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.
14. 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.
15. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
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 miscellaneous members and local safety members.
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.
16. 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.
17. 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 NEWPORT BEACH
BY BY
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS ID #1545983430
PERS-CON-702A
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby
certify that the whole number of members of the City Council is seven; that the foregoing ordinance,
being Ordinance No. 2012-22 was duly and regularly introduced on the 25th day of September, 2012,
and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly
held on the 23rd day of October, 2012, and that the same was so passed and adopted by the following
vote, to wit:
Ayes: Hill, Rosansky, Curry, Selich, Daigle, Henn, Mayor Gardner
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 24th day of October, 2012.
J
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City Clerk &
City of Newport Beach, California
(Seal)
�FORN��
CERTIFICATE OF PUBLICATION
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LEILANI I. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify
that Ordinance No. 2012-22 has been duly and regularly published according to law and the order of
the City Council of said City and that same was so published in The Daily Pilot, a daily newspaper of
general circulation on the following date:
2012.
Adopted Ordinance in its entirety: October 27, 2012 n I r�+lp��„
In witness whereof, I have hereunto subscribed my name this . !! M day of !yV Y W/I W
City Clerk
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V City of Newport Beach, California
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