HomeMy WebLinkAboutR36-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: Gary Van Osdel SUBJECT:
Executive Director 0 RIG 1 N A L
DATE: March 31, 2003
PERS Contract Amendment
.--------~--------_..-----------------_.~------_._.--------...--------------------.-.------------------------------_._-.-------------------
Svnopsis of Previous Commission/CounciVCommittee Action(s):
On December 16,2002, the Community Development Commission approved to amend the Public Employees
Retirement Contract to provide the 3% @ 60 retirement plan effective July 1, 2003.
On March 17,2003, the Community Development Commission adopted the Resolution oflntention to amend the
Agency's Public Employees Retirement Contract.
-------------------------------------------------------------------------------------------------------------------------------------------
Recommended Motion(s):
(Community Development Commission)
MOTION:
SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY RESOLUTION AUTHORIZING
AN AMENDMENT TO THE CONTRACT.
-------------------------------------------------------------------------------------------------------------------------------------------
Contact Person(s): Barbara Lindseth/Gary Van Osdel
Phone: 663-1044
Project Area(s):
NA
Ward(s): All
Supporting Data Attached:1iiI Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LtrlMemo
FUNDING REQUIREMENTS: Amount: FY 03-04 NA
Source: PERS Sum Ius/Over Funded
Budget Authority: NA
SIGNATURE:
~/
~/
--":
/
/,
'J C:".( t.....
"--...._,.
, '1
~.. '7 /;
. ,..r.,
>----".
Barbara Lindseth
Admin Services Director
------------------------------------------------------.-------------.------------------------------------------------------.---------------
Commission/Council Notes:
-~~-~-~~~~~~-~;?~:j-~---------------------------------------------------------------------------
GVO:Bl:Agenda CDC-PERS Final Reso 02-03.doc COMMISSION MEETING AGENDA
MEETING DATE: 04121/03
Agenda Item Number: I<JI,
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Public Emplovees Retirement System Contract Amendment
Backlzround:
On December 16, 2002, the Community Development Commission ("Commission") approved to
amend the Public Employees Retirement System ("PERS") Contract to provide the 3% @ 60
retirement plan for active Agency employees effective July I, 2003. At that time, staff indicated that
two (2) Resolutions, a Resolution ofIntention and a Final Resolution, would be brought before the
Commission at a later date to finalize the Contract Amendment.
On March 17, 2003, the Commission adopted a Resolution ofIntention and, in accordance with
Government Code Section 7507, the future annual cost of the proposed contract amendment was
made public at that meeting. PERS further requires that there must be a 20 day period between the
Resolution of Intention and the adoption of the Final Resolution, pursuant to Government Code
Section 20471.
Current Issue:
At this time, PERS requires that the Commission adopt the Final Resolution, and in accordance with
Government Code Section 7507, the following financial information was disclosed on March 17,
2003:
1. Change in the Present Value of Benefits:
As of June 30, 2001 I Current Plan I Post-Amendment
Total Assets at Market Value (MVA) $8,740,718 $8,740,718
Actuarial Value of Assets (AVA) 9,421,109 9,421,109
AVA/MVA 107.8% 107.8%
Present Value of Projected Benefits (PVB) $7,471,970 $8,645,512
Actuarial Value of Assets (AVA) 9,421.109 9,421,109
Present Value of Future Employers and
Employee Contributions (PVB - AVA) (1,949,139) (775,597)
Change to PVB 1,173,542
-------------------------------------------------------------------------------------------------------.----------
GVO:BI:Agenda CDC-PERS Final Reso 02-03.doc
COMMISSION MEETING AGENDA
MEETING DATE: 04121/03
Agenda Item Number: f..J'
Community Development Commission Agenda
PERS Contract Amendment
Staff Report
Page-2-
2. Change in the Accrued Liability:
As of June 20, 2001
I
Current Plan I
Post-Amendment
Entry Age Normal Accrued Liability (AL)
$5,996,355
$6,859,100
Actuarial Value of Assets (AVA)
9.421,109
9.421,109
Unfunded Liability/(Excess Assets)
(UAL = AL -AVA)
(3,424,754)
(2,562,009)
Funded Ratio (AVA I AL)
157,1%
137.4%
Change to Accrued Liability (AL)
862,745
3, Changes in the Total Employer Rate
As of June 30, 2001 I Current Plan I Post-Amendment
2003-04 Total Employer Rate 0,00% 0,00%
2003-04 Total Employee Rate 7,00% 8,00%
Change to Total Employee Rate 1,00%
(To be paid by employee)
2004-05 Estimated Employer Rate
(Recognizing -6% investment return for
2001-2002) 0,00% 4,3%
Environmental Impact:
None,
------------------------------------------------------------------------------------------------------------------
GVO:BI:Agenda CDC-PERS Final Reso 02-03 ,doc
COMMISSION MEETING AGENDA
MEETING DATE: 04121103
Agenda Item Number: ~
Community Development Commission Agenda
PERS Contract Amendment
Staff Report
Page - 3 -
Fiscal Impact:
The employer's rate for the fiscal year 2003-04 will be 0.00% and, hence, there will be no additional
cost to the Agency. As ofJuly 1,2003, the employee's rate will increase by 1% to a total of8%.
The cost to the Agency employees will be 1 % of gross montWy salary. It is estimated, at this time,
that the employer's rate will be 4.3% in fiscal year 2004-05 ($58,000).
Recommendation:
Based upon the foregoing, staff recommends the adoption of the Resolution.
1
/J t:'
I "
/ 7
~.;/ I 7c/~< . )
LL 0cu '^
Barbara Lindseth
Administrative Services Director
------------------------------------------------------------------------------------------------------------------
GVO:BI:Agenda CDC-PERS Final Reso 02-03.doc
COMMISSION MEETING AGENDA
MEETING DATE: 04121/03
Agenda Item Number: K,Jb
f('
\'\-,.-
..,-~
SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY
RESOLUTION
AUTHORIZING AN AMENDMENT TO THE CONTRACT
No.
WHEREAS, the Board of Administration of the California Public Employees' Retirement
System and the Commissioners of the San Bernardino Economic
Development Agency entered into a contract effective on August 1, 1982
providing for the participation of said public agency in the California Public
Employees' Retirement System; and
WHEREAS, it is now desirable to take advantage of certain benefits provided under
said Retirement System and not included in said contract;
NOW, THEREFORE, BE IT RESOLVED, that said governing body authorized, and it
does hereby authorize, an amendment to said contract, a copy of said
amendment attached hereto and by such reference made a part hereof as
though herein set out in full; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the presiding officer of said
governing body is hereby authorized, empowered and directed to execute
said amendment for and on behalf of said public agency.
Adopted this
day of
Presiding Officer
Attest
Clerk/Secretary
(Amendment)
Dl=cc:::_rf"\tl.L1"::t tOo" 1/QQ:\
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
I hereby certify that the
of the
(governing body)
adopted on
(public agency)
, by an affirmative vote of a majority
(date)
of the members of said Governing Body,
(Ordinance or Resolution)
No. approving the attached contractual agreement between the
Governing Body of said Agency and the Board of Administration of the California Public
Employees' Retirement System, a certified copy of said
(Ordinance or Resolution)
in the form furnished by said Board of Administration being attached hereto.
Clerk/Secretary
Title
Date
PERS-CON-5 (Rev 1/96)
A
CalPERS
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
Commissioners
San Bernardino Economic Development Agency
.
-
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 August
1, 1982, and witnessed July 19, 1982, and as amended effective July 1, 1988, April 8,
1997 and July 1, 2001 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 July 1, 2001, and hereby replaced by the following paragraphs
numbered 1 through 14 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 local miscellaneous members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after August 1, 1982 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. 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. SAFETY EMPLOYEES.
5. This contract shall be a continuation of the benefits of the contract of the
Redevelopment Agency of the City of San Bernardino, hereinafter referred
to as "Former Agency", pursuant to Section 20508 of the Government
Code, Former Agency having ceased to exist and succeeded by Public
Agency on August 1, 1982. Public Agency, by this contract, assumes the
accumulated contributions and assets derived therefrom and liability for
prior and current service under Former Agency's coll!tract with respect to
the Former Agency's employees. Legislation repealed Section 20508,
Statutes of 1949, effective January 1, 1988.
6. Public Agency and the City of San Bernardino have agreed to a merger of
the redevelopment function of the contract of the City of San Bernardino
into the contract of Public Agency. This contract shall be a continuation of
the contract of the City of San Bernardino, with respect to the
Redevelopment function, pursuant to Section 20567.5 of the Government
Code. Such merger is effective as of August 1, 1982. Legislation
repealed said Section effective January 1, 1988.
a. Service performed for the City of San Bernardino and the
Redevelopment Agency of the City of San Bernardino prior
to August 1, 1982 shall be subject to the terms and
conditions of the City of San Bernardino's contract as they
were in effect at that time in addition to the benefits provided
in this contract. Service performed after August 1, 1982
shall be subject to the terms and conditions of this contract.
For purposes of computing retirement allowances, separate
calculations shall be made for services performed under
each contract.
7. 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 the effective date of the
amendment to contract shall be determined in accordance with Section
21354 of said Retirement Law (2% at age 55 Full).
8. The percentage af final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after the effective date of the amendment to contract
shall be determined in accordance with Section 21354.3 of said
Retirement Law (3% at age 60 Full).
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20042 (One-Year Final Compensation).
b. Section 20965 (Credit for Unused Sick Leave).
c. Sections 21624 and 21626 (post-Retirement Survivor Allowance).
d. Section 21573 (Third Level of 1959 Survivor Benefits).
e. Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
10. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834.
11. 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 of said Retirement System.
12. 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 21573 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.
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.
13. 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.
14. 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
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
COMMISSIONERS
SAN BERNARDINO ECONOMIC
DEVELOPMENT AGENCY
BY BY
KENNETH W. MARZION, CHIEF PRESIDING OFFICER
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest
Clerk
AMENDMENT ER# 1319
PERS-CON-702A (Rev. 8\02)
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Change to motion to amend original documents:
ox.. I 2003-(3
,
Absent -e-
Meeting Date (Date Adopted): .l\--z...i~o3 Item # lZ. -S~ Resolution #
Vote: Ayes \ - 'I Nays -br Abstain -e--
Reso, # On Attachments: - Contract term:
--
Note on Resolution of Attachment stored separately: -=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor: -"\ - ?3-D-~
Date of Mayor's Signature: c; )4-~
Date ofClerk/CDC Signature: 4 -?J\-()~
Date Memo/Letter Sent for Signature:
60 Day Reminder Letter SentoD ~Qtb(Iay:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Attached:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distributed to:
City Attorney
Parks & Rec,
Code Compliance Dev. Services
Police Public Services Water
Notes:
NullNoid After: -
By:
Reso, Log Updated: /
Seal Impressed: ../
Date Returned:
-
Yes V No By
Yes No~ By
Yes No V By
Yes No / By
Yes NoT By_
EDA ./
MIS
Finance
Others:
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: _
Date:
Revised 01/12/01