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Home My WebLink About04 - 3%@50 Retirement for Police EmployeesL] AGENDA ITEM 4 TO: Mayor and City Council FROM: Sharon Wood, Assistant City Manager SUBJECT: Implementation of 3 % @50 Retirement for Police Employees Recommendation Introduce the following Ordinance: An Ordinance of the City Council of the City of Newport Beach Authorizing an Amendment to the Contract Between the City and the Board of Administration of the California Public Employees' Retirement System Discussion The City Council, on July 23, 2002, adopted a resolution of intention to approve an amendment to the City's PERS contract that will provide the 3 % @50 retirement benefit for the Police Employees and Police Management bargaining units. Memoranda of Understanding with these associations provide that this benefit will be implemented no later than December 1, 2002. Adoption of the Ordinance is the next step in the process. The contract amendment attached to the proposed Ordinance indicates that November 30, 2002 will be the effective date of the amendment. 1] ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does hereby ordain as follows: Section 1. That an amendment to the contract between the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit "A," and by such reference made a part hereof as though set out in full. Section 2. The Mayor of the City of Newport Beach is hereby authorized, empowered and directed to execute said amendment for and on behalf of the City. Section 3. This Ordinance shall take effect thirty (30) days after its adoption, and prior to the 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. Adopted and approved this Attest: City Clerk day of August 2002 by the following vote: AYES, COUNCILMEMBERS _ NAYS, COUNCILMEMBERS _ ABSTAIN, COUNCILMEMBERS Tod W. Ridgeway, Mayor s Ll 0 Ca1PERS California Public Employees' Retirement System EXHIBIT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach `0 - _. _. • 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 and June 15, 2002 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 June 15, 2002, and hereby replaced by the following paragraphs numbered 1 through 13 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; age 55 for local fire members and ocean beach lifeguards; and age 50 for local police 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. _ PLEASE 00 NOT SIGN "EXHIBIT ONLY" 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. Ocean Beach Lifeguards (included as local safety members); d. 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. CADETS; AND b. RESERVE OFFICERS. 5. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 6. The percentage of final compensation to be provided for each year of credited prior and current service as local fire members and ocean beach lifeguards shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full). 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local police member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 8. 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), Statutes of 1976. d. Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits). Legislation repealed said Section effective September 27, 1979. 1-1 PLEASE DO NOT SIGN "EXHIBIT ONLY" e. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members only. f. Section 20042 (One -Year Final Compensation). : , . 9. 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. 10. 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. 11. 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. 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. 12. 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. 0 5 13. 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 effecfeon the 30th day of November (�`J BOARD OF ADMINISTRATION �\ CITY COUNCIL PUBLIC EMPLOYEES' RETIRF�t11�T SYSTEM CITY OF NEWPORT `6EACH BY KENNETH W. MARZI ACTUARIAL & EMPL PUBLIC EMPLOYEE; ��l AMENDMENT PERS- CON -702A (Rev. 8196) AIEF SERVICES DIVISION IREMENT SYSTEM BY PRESIDING -G. F ICER .�J Witgess Date Attest: Clerk 0 i G