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HomeMy WebLinkAbout9253 - Public Employees Retirement System0 RESOLUTION NO. 9253 A RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH (CHP 2% AT 50) 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 law; and WHEREAS, one of the steps in the procedure to amend this contract is the adoption by the legislative 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: Provides 2% at 50 benefits for safety members. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach does hereby give notice of intention to approve an amendment to the contract between the City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto as an Exhibit, including a statement of the increased costs to the City attendant to said amendment, and by this reference made a part hereof. ADOPTED this 19th day of December 1977. ATTEST: or 116 4-� Lez::n�. — City Clerk EER�RTI'fIE AS THE ORIGINAL CITY CtErtK OF THE CITY OF � OAT& -- .. ' 2 . 1 1977 DDO /bc 12/19/% rig �{ i ' e� i. {, G3 . G� . 6•� . s AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, herein- after referred to as "Board ", and the governing body of above public agency, hereinafter referred to as "Public Agency ", having entered into a contract under date of April 27, 1945, effective July 1, 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 and December 18, 1977, which provides for participation of Public Agency: in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective September 24, 1977, and hereby replaced by the following paragraphs number 1 through 10 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 60 for miscellaneous members and age 50 for local safety members. ta, CO 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 such as by express provisions thereof apply only on the election of Contracting agencies. 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 Firemen (herein referred to as local safety members); b. Local Policemen (herein referred to as local safety members); c. Lifeguards on ocean beaches (included as local safety members); d. Employees other than local safety members (herein referred to as miscellaneous members). 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 Con. Form 702 -1 4. The fraction of final compensation to be provided for each year of credited prior and current service as a miscellaneous member shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60). 5. The fraction of final compensation to be provided for-each year of credited prior and current service as a safety member shall be determined in accordance with Section 21252.01 of said :Retirement Law (2% at age 50). 6. The following additional provisions of the Public Employees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Section 20019.3 (providing for inclusion oU lifeguards on ocean beaches as local safety members). b. roviding for age 50 as the minim retirement age for Inca th benefit paymentsr.�r, or to age 55 subject to actuarial sco . P60 c. Sections 21380 -21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). d. Section 20930.3 (allowing public service credit under the provisions of Chapter 830, Stats. 1976, for up to four years of continuous military or merchant marine service). e. Section 21298 (providing increased non - industrial disability retirement allowances of up to fifty - percent of final compensation to members retiring after the effective date of the amendment). 7. Public Agency, in accordance with Section 20740, Government Code, ceased to be an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law effective on September 24, 1977. Accumulated contributions of Public Agency as of the aforementioned date shall be fixed and determined as provided in Section 20759, Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said Retirement System: (1) 7.926 percent on account of the liability for current service benefits. (2) 0.205 percent on account of the liability for the 1959 Survivor Program. Con. Form 702 -2 A 0 b. With respect to local safety members, the agency shall contribute the following percentages of monthly salaries earned as local safety members of said Retirement System: (1) 18.417 percent on account of the liability for current service benefits. (2) 0.000 percent on account of the liability for the 1959 Survivor Program. c. A reasonable amount per annum, as fixed by the Board 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 periodical investigation and valuations required by law. d. 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 periodical investigation and valuations required by lace. 9. 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 periodical investigation and valuation required by said Retirement Law. 10. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within thirty days after the end of the period to which said contributions refer or as may be prescribed by Board negotiation. 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, or adjustments.on account of errors in contributions required of any employee may be made by direct cash payments between the employee and the Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. B. This amendment shall be attached to said contract and shall be effective on the day of , 19 Con. Form 702 -3 u a 9 Witness our hands this 0 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM +BY Carl J. Blechinger, Executive Officer Approved as to form: Legal Office, PERS day of CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Attest. Clerk 19 Con. Form 702-4 INCREASED COSTS TO THE CITY ATTENDANT TO AN AMENDED CONTRACT WITH PUBLIC EMPLOYEES' RETIREMENT SYSTEM PROVIDING THE 2% AT AGE 50 FORMULA FOR SAFETY PERSONNEL 0 Estimated 1977 -78 P.E.R.S. Safety Members Expense (Current Fiscal Year) 1978 -79 Increased Cost Due To.Rate Increase, *63.52% Estimated 1978 -79 P.E.R.S. Safety Members Expense Based on 1977 -78 Salaries POLICE FIRE MARINE TOTAL $307,901 227,304 24,012 559,217 $195,578 144,383 15,252 355,213 $503,479 371,687 39,264 914,430 NOTE: THE ABOVE ESTIMATE DOES NOT INCLUDE ANY PROVISION FOR POSSIBLE SALARY ADJUSTMENTS WHICH MAY BE NEGOTIATED AT MID -YEAR. AS A GUIDE, A ONE PERCENT SALARY ADJUSTMENT WILL INCREASE THE P.E.R.S. SAFETY *The rate increase at 7.39% represents a 63.52% increase in expenses over the Fiscal Year 1977/78 figure.