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.<;>F,SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
.
From:
BARBARA DILLON
Subject:
RESOLUTION OF THE MA YOR&COMMON COUNCIL
. . . EXPRESSING ITS INTENTION TO APPROVE
AN AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE PUBLIC
EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
OF SAN BERNARDINO
Date:
PERSONNEL
MARCH 18, 1997
ORIGINAL
Dept:
AN ORDINANCE. . . AUTHORIZING AN AMEND-
MENT TO THE CONTRACT BE1WEEN THE BOARD OF
ADMINISTRATION OF THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY OF
SAN BERNARDINO
Synopsis of Previous Council Action:
On March 17, 1997, the Mayor and Common Council approved a motion to receive and file the
mid-year budget report and to instruct the Director of Personnel to meet with the
"miscellaneous" employee bargaining units to discuss the following: Two (2) years additional
service credit to PERS members who retire during a designated period if a mandatory transfer,
layoff or demotion is imminent and specific PERS requirements are met. (This benefit is also
know as the "golden handshake. ")
Recommended Motion:
Motion 1: Adopt the resolution of the Mayor and Common Council of the City of San
Bernardino expressing its intention to approve an amendment to the contract between the Board
of Administration of the Public Employees' Retirement System and the City of San Bernardino.
lllli!
Motion 2:
That said ordinance be laid over.
~~d/7A.2'J/ ///'JJ?}
Signature
Contact person:
Barbara Dillon
Phone:
384-5161
Supporting data attached:
Yes
Ward:
Council Notes:
Amount:
Source: (Acct. No.)
(Acet. D~ri*o~) :;
Finance:
tlf.
.. . 'l.
\I u: l
-.
FUNDING REQUIREMENTS:
d..CjA -Res 97- C; '1
J..1 g-Laid OVer
Agenda Item No. ~9 ~ i-13
'I /'1 91
.OF, SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
BACKGROUND
On March 17, 1997, the Mayor and Common Council approved a motion to receive and file the
mid-year budget report and to instruct the Director of Personnel to meet with the
"miscellaneous" employee bargaining units to discuss the following: Two (2) years additional
service credit to PERS members who retire during a designated period if a mandatory transfer,
layoff or demotion is imminent and specific PERS requirements are met. (This benefit is also
known as the "golden handshake. ")
Pursuant to PERS regulations, the Mayor and Common Council must adopt a Resolution of
Intention and an ordinance approving an amendment to the PERS contract.
ANALYSIS
The attached Resolution of Intention (Exhibit A) states the intention of the Mayor and Common
Council of the City of San Bernardino to amend its contract with the Public Employees'
Retirement System to provide Section 20903 (Two (2) Years Additional Service Credit) for local
miscellaneous members. Exhibit B is the ordinance, which is presented for a first reading.
COSTING
Although Section 20903 does not increase the employer contribution rate, there is a dollar cost
for this benefit. After the expiration of the designated period, the agency will need to submit
to PERS a list of members eligible to receive the additional service credit who retired during the
designated period. The designated period must be subsequent to the effective date of the
contract amendment and cannot be less than 90 nor more than 180 days in length. The agency
will be notified of the actual costs and payment options available after all eligible members have
received the additional service credit.
RECOMMENDATION
Based on the foregoing, it is recommended that the Mayor and Common Council adopt:
*
Resolution of the Mayor and Common Council of the City of San Bernardino expressing
its intention to approve an amendment to contract between the Board of Administration
of the Public Employees' Retirement System and the City of San Bernardino.
and,
* That said ordinance be laid over.
EXHIBIT A
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF SAN BERNARDINO
The Board .of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective March I, 1945, and witnessed February 6, 1945, and as
amended effective November I, 1949, September 1, 1951, January 1, 1952, July I, 1954,
February I, 1965, February 24,1969, March 8,1971, October 1,1973, October 28,1974, March
17, 1975, April 28, 1975, November 10, 1975, July 6, 1977, January 7, 1985, May 27, 1985,
September 16,1988, AugUst 27,1990 and August 1,1996:
A. Paragraphs I through 13 are hereby stricken from said contract as executed effective
AugUst I, 1996, and hereby replaced by the following paragraphs numbered I through 13
inclusive:
I. All words and terms used herein which are dermed 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 and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from
and after March I, 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 prov\sions 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);
PLEASE DO NOT SIGN "EXH!S:T Of.iLY"
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. CROSSING GUARDS HIRED ON OR AFTER JANUARY 1, 1952;
b. . LIBRARY PAGES HIRED ON OR AFTER MARCH 17,1975;
c. LIFEGUARDS;
d. SENIOR LIFEGUARDS;
e. SUPERVISING LIFEGUARDS;
f. RECREATION INTERNS;
g. RECREATION AIDES;
h. RECREATION LEADERS;
i. SENIOR RECREATION LEADERS;
j. RECREATION SPECIALIST;
k. LOCKER ATTENDANTS;
I. VEHICLE OPERATORS; Ai"ID
m. EXTRA RELIEF HEAVY LABORERS (EXTRA BOARD).
5. Prior to January I, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 supersedes this
contract provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January I, 1975.
Legislation repealed and replaced said Section with Government Code Section
20305 effective July I, 1994.
6. 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 21251.13 of said Retirement Law (2% at age 60 Full).
7. 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 of said Retirement Law (2% at age 50 Full).
8. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624. 21626 and 21628 (Post-Retireme~t Survivor Allowance)
for local miscellaneous members and local fire members only.
PLEASE DO NOT SIGN "EXi1iSIT CiLY:'
b. Section 21222.1 (Special 5% Increase-1970). Legislation repealed said
Section effective January I. 1980.
c. Section 20042 (One-Year Final Compensation).
d. Section 21024 (Military Service Credit as Public Service), Statutes of
1974.
e. Section 21222.2 (Special 5% Increase-I971). Legislation repealed said
Section effective January I, 1980.
f. Section 21319 (Special 1 5% Increlise for Local Miscellaneous Members).
g. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire
members only.
h. Section 20903 (Two Years Additional Service Credit) for local
misceIlaneoll$ members only. .
9. Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on April 28, 1975.
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 foIlows:
a. Public Agency shall contribute S1.50 per member, per month on account
of the liability for 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 fire members.
b. A reasonable amount, as fixed by the Board, payable in one installment
v.ithin 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.
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 ~oard
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
,19_.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF TIlE
CITY OF SAN BERNARDINO
BY. ~~ BY ~
KENNET~ IARZION. CHIEF PRESID~ OFFICER
ACTUARIAL MPLOYER SERVICES DIVISION ~~
PUBLIC EMPLO ' RETIREMENT SYSTEM ~~
~ ~~
,~ ~
it.;, ~'"
'1..!-:~ Witness Date 11-,
"~" ~'
~/., I
,~ ~
~. ~.
"'~", Anest: "'....;-
<;.k
<')-:,
Clerk
A.\IENDMENT
PERS-CON.702A (Rev. 11196)
. .
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 GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
MAYOR ARD COMIIOIIJ COUllleIL
(governing body)
of the
CITY OJ!' SAII1 BBRII1ARDIIIJO
(public agency)
on April 7. 1997
(date)
.
C~~
CITY CLERK
Title
PERS-CON-12 (rev. 1/96)
",
"
EXHIBIT A
A.VlENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF SAN BERNARDINO
The Board ~f Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective March I, 1945, and witnessed February 6, 1945, and as
amended effective November I, 1949, September I, 1951, January I, 1952, July 1, 1954,
February 1, 1965, February 24, 1969, March 8, 1971, October 1,1973, October 28,1974, March
17, 1975, April 28, 1975, November 10, 1975, July 6, 1977, January 7, 1985, May 27, 1985,
September 16,1988, August 27,1990 and August 1,1996:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective
August 1, 1996, and hereby replaced by the following paragraphs numbered 1 through 13
inclusive:
1. All words and terms used herein which are dermed 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 and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from
and after March 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 pro~sions 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);
'. I
PLEASE DO NOT SIGN "EXHIS:: Ol.iL'i"
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. CROSSING GUARDS HIRED ON OR AFTER JANUARY 1, 1952;
b. . LIBRARY PAGES HIRED ON OR AFTER MARCH 17, 1975;
c. LIFEGUARDS;
d. SENIOR LIFEGUARDS;
e. SUPERVISING LIFEGUARDS;
f. RECREATION INTERNS;
g. RECREATION AIDES;
h. RECREATION LEADERS;
i. SENIOR RECREATION LEADERS;
j. RECREATION SPECIALIST;
k. LOCKER ATTENDANTS;
L VEmCLE OPERATORS; AND
m. EXTRA RELIEF REA VY LABORERS (EXTRA BOARD).
5. Prior to January I, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 supersedes this
contract provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January I, 1975.
Legislation repealed and replaced said Section with Government Code Section
20305 effective July 1, 1994.
6. 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 21251.13 of said Retirement Law (2% at age 60 Full).
7. 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 of said Retirement Law (2% at age 50 Full).
8. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624. 21626 and 21628 (Post-Retiremel!t Survivor Allowance)
for local miscellaneous members and local fire members only.
., I
.'
PLEASE DO NOT SIGN "EXi1iSiT miLY:l
b. Section 21222.1 (Special 5% lncrease-I 970). Legislation repealed said
Section effective January I, 1980.
c. Section 20042 (One-Year Final Compensation).
d. Section 21024 (Military Service Credit as Public Service), Statutes of
1974.
e. Section 21222.2 (Special 5% Increase-1971). Legislation repealed said
Section effective January I, 1980.
f. Section 21319 (Special 15% 1ncre8se for Loca1 Miscellaneous Members).
g. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire
members only.
h. Section 20903 (Two Years Additional Service Credit) for local
miscellaneoU$ members only. .
9. Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on April 28, 1975.
Accumulated contributions of Public Agency sha1I 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 valuatiODs 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. Public Agency shall contribute $1.50 per member, per month on account
of the liability for 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 fire 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.
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 effective on the
day of
,19_.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF SAN BERNARDINO
BY~ BY~
ICENNE ~~ON. CIIIEF PRESID""P. OFFICER
ACTUARIAL LOYER SERVICES DIVISION ~<2
PUBLIC EMPLO . RETIREMENT SYSTEM Z'A.
~~ ."'...
7~ '~
~~~~.~ Witness Date t~ ~
~~. <-~
q.!", ~'\.
.:,~> Attest: ~;-
qz..
"r.)
Clerk
A....ENDMENT
fERS.CON-702A (Rev. 1196)
.'
(g(Q)[?)'l!
EXHIBIT B
I
ORDINANCE NO.
2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
3 OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN
BERNARDINO.
4
5
6
7
8
9
10
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed to approve an amendment
to the contract between the City of San Bernardino and the Board of Administration of the
California Public Employees' Retirement System. A copy of said amendment is attached
hereto as Exhibit "A" and by such reference made a part hereof as though herein set out in full.
SECTION 2. The authorization to execute the above-referenced amendment to
11
Contract is rescinded if the parties to the Contract fail to execute it within sixty (60) days of the
"
"
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
2 OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN
BERNARDINO.
3
4
1 HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof, held on
. 1997, by the following vote, to wit:
AYES
NAYS
ABST A1N ABSENT
15
16
17
18
Rachel Clark
City Clerk
The foregoing Ordinance is hereby approved this
day of
,1997.
19
Tom Minor, Mayor
City of San Bernardino