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I' 1111'
.. C1TY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
From:
EDWARD S. RAYA
Subject:
AN ORDINANCE AND RESOLUTION
AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION OF THE PUBLIC
EMPLOYEES RETIREMENT SYSTEM
AND THE CITY OF SAN BERNARDINO FOR
ADDING THE 2% @55 RETIREMENT
BENEFIT
Dept:
HUMAN RESOURCES
ORII"'.,qAL
OCTOBER 16, 2000 ~ j I ~ ;.
Date:
Synopsis of Previous Council Action:
)n December 20, 1999, the Mayor and Common Council approved the Memorandum of Understandinl
>etween the City of San Bernardino and employees in the General Unit and the Mid-Management Unit.
)n January 25, 2000, the Mayor and Common Council approved Resolution 2000-13 establishinl
v1anagement and Confidential Compensation and Benefits.
~ecommended Motion:
1. Adopt Resolution
2. That said Ordinance be laid over for final adoption.
~d~i~~10
Edward S. Rava
Yes
Phone:
384-5161
::ontact Person:
~upporling Data Attached:
Ward:
'UNDING REQUIREMENTS:
Amount:
Source: (AccI No)
(AccI Descri~ r-
Finance: K~~d!~k~_
;ouncil Notes:
Agenda Item No.
/O/llI/OO
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. CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT
Amend the PERS contract to provide the Section 21354 (2% @ 55 Full formula) for
local miscellaneous members.
BACKGROUND
The Mayor and Common Council previously approved the Memorandums of
Understanding between the City of San Bernardino and employees in the General and
Mid-Management bargaining units of the City of San Bernardino, and Resolution 2000-
13 establishing Compensation and Benefits for Management and Confidential
employees.
These agreements contained provisions which require the City to amend the PERS
contract to provide the Section 21354 (2% @ 55 Full formula) for local miscellaneous
members, effective 6/01/01. The cost for this benefit is $15,637,602, according to the
PERS valuation. When the contract is amended, the City will receive the one time
methodology change and with this change PERS estimates that the City's employer rate
will still remain zero for approximately 71 years. It is anticipated that although the City's
Miscellaneous PERS account will still be over-funded after the contract amendment, it
will not be super over-funded.
Pursuant to PERS' regulations, the Mayor and Common Council must approve the
Resolution of Intention and an Ordinance approving an amendment to the PERS
contract prior to the implementation date of 6-01-01.
The attached Ordinance and Resolution authorizes an amendment of our contract with
the Public Employees' Retirement System (Exhibit A) to provide the 2% @ 55 benefit for
all local miscellaneous members.
FINANCIAL IMPACT
1. Changes in the Present Value of Benefits
2. Changes in the Unfunded Accrued Liability
3. Changes in the employer rate
$15,637,602
$ (1,643,926)
0.000%
As indicated above there will be no impact on the City's employer rate because the
City's surplus PERS funds will be used to fund this benefit.
RECOMMENDATION
1. Adopt Resolution
2. That said Ordinance be laid over for final adoption.
Attachment: Ordinance
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~(9)[P)W
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM'
AND THE
CITY COUNCIL
CITY OF SAN BERNARDINO
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 procedures 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 procedures to amend this contract is the
adoption by the governing 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 changes proposed in said contract; and,
WHEREAS, the following is a statement of the proposed change:
To provide Section 21354 (2% @ 55 Full formula) for local
miscellaneous members.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the City of
San Bernardino does hereby give notice of intention to approve an amendment to the
contract between said City of San Bernardino and the Board of Administration of the
Public Employees' Retirement System, a copy of said amendment being attached
hereto, as an "Exhibit" and by this reference made a part hereof.
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I 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 the day of 2000, by the following
vote to wit:
COUNCILMEMBERS
ESTRADA
LIEN
MC GINNIS
SCHNETZ
SUAREZ
ANDERSON
AYES
NAYS
ABSENT AST AIN
McCAMMACK
Rachel Clark, City Clerk
The foregoing resolution is hereby approved this _ day of
2000.
. Judith Valles, Mayor
Approved as to
Form and legal content:
JAMES F. PENMAN
City Attorney
By:
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~(Q)[?)V
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN
BERNARDINO.
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
Contract is rescinded if the parties to the Contract fail to execute it within sixty (60) days
of the passage of this Ordinance.
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I' In
AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN
BERNARDINO.
I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
meeting thereof, held on the day of 2000, by the following vote
to wit:
COUNCILMEMBERS
ESTRADA
LIEN
MC GINNIS
SCHNETZ
SUAREZ
ANDERSON
AYES
NAYS
ABSENT ABSTAIN
McCAMMACK
Rachel Clark, City Clerk
The foregoing ordinance is hereby approved this
day of
2000.
Judith Valles, Mayor
Approved as to
Form and legal content:
JAMES F. PENMAN
City Attorney
By:
I' 1JIf1.
A
CalPERS
~(Q)[P)W
EXHIBIT A
California
Public Employees' Retirement System
+... --
AMENDMENT TO CONTRACT
Between the
Board of Admi.nistration
California Public Employees' Reti.rement System
and the
City Council
City of San Bernardino
-.--
..,
.. --,-.- ~ .-,."
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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 March 1, 1945, and witnessed February 6, 1945,
and as amended effective November 1, 1949, September 1, 1951, January 1, 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, August 1,1996, July 3, 1997, January 1,1998, August 1,
1998 and November 1, 1999 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
November 1, 1999, 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 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 provisions thereof, apply only on the election of a contracting agency.
'Ill'
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. 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 OR 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; AND
m. EXTRA RELIEF HEAVY LABORERS (EXTRA BOARD).
5. Prior to January 1, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
CalPERS membership by contract. Government Code Section 20336 superseded
this contract provision by providing that any such temporary and/or seasonal
employees are excluded from CalPERS membership subsequent to January 1,1975.
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 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 as a local safety member shall be determined in accordance with
Section 21362 of said Retirement Law (2% at age 50 Full).
II'I!
PLEASE 00 NOT SIGN -EXHIBIT ONLY"
8. Public Agency elected and elects to be subject to the following optional provisions:
a. Sections 21624,21626 and 21628 (Post-Retirement Survivor Allowance).
b. Section 21222.1 (Special 5% Increase-1970). Legislation repealed said
Section effective January 1, 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 1, 1980.
f. Section 21319 (Special 15% Increase for Local Miscellaneous Members who
retired or Died Prior to July 1, 1997).
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members
and local miscellaneous members only.
h. Section 20903 (Two Years Additional Service Credit) for local miscellaneous
members only.
i. Section 21635 (Post-Retirement Survivor Allowance to Continue After
Remarriage) for local fire 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 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 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 CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SAN BERNARDINO
i:--'
" . ,
BY "~~,,J BY
KENNETH W. MARZION, CHIEF ....~,' PRESIDING OFFICER "
ACTUARIAL & EMPLOYER SERVIC~'gtVISION ':\ \.i"
PUBLIC EMPLOYEES' RETIREME~SYSTEM <"ts.~~
~S ,,~,
~ S'{~
~<0 Witness Date \\J'\
g; ~~
<y"i' Attest:S~~
<,)Y \ <,~
, ~~v
Clerk
AMENDMENT
PERS-CON-702A (Rev. 8\96)
I" IJrTF'
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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
of the
(governing body)
(public agency)
on
(date)
Clerk/Secretary
Title
PERS-CON-12 (rev. 1196)
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 COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
I hereby certify that in accordance with Section 7507 of the Government Code
the future annual costs as determined by the System Actuary and/or the increase
in retirement benefit(s) have been made public at a public meeting of the
of the
(governing body)
(public agency)
(date)
which is at least two weeks prior to the adoption of the
on
Resolution I Ordinance.
Clerk/Secretary
Title
Date
PERS-CON-12A (rev. 1196)
'Ill'
October 20, 2000
Kenneth W. Marzion
Actuarial & Employer Services Division
Public Employees' Retirement System
P.O. Box 942709
Sacramento, CA 94229
Dear Mr. Marzion,
At the Mayor and Common Council meeting of October 16,2000, the City of San Bernardino
adopted Resolution 2000-314 - Resolution authorizing an amendment to the contract between
the Board of Administration of the Public Employees' Retirement System and the City of San
Bernardino for adding the 2% @ 55 retirement benefit.
Enclosed are two (2) original agreements. Please sign in the appropriate locations and return the
original agreements to the City Clerk's Office, Attn: Michelle Taylor, P.O. Box 1318, San
Bernardino, CA 92402, as soon as possible.
Please retain a copy of the agreement for your files.
If you have any questions, please do not hesitate to contact me at (909)384-5002.
Sincerely,
Michelle Taylor
Senior Secretary
I' II! I'
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CalPERS
Actuarial & Employer Services Division
PO Box 942709
Sacramento, CA 94229-2709
Telecommunications Device for the Deaf - (916) 326-3240
(916) 326-3420 FAX (916) 326-3005
!') ,/-, r-~S-
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March 12, 2001
Employer Code #0061
Reply to Section 105
Mr. Edward S. Raya
Director of Human Resources
City of San Bernardino
300 North D Street
San Bernardino, CA 92418-0001
~rn@rnD\Ylrn~
MAR 1 4 2001
Dear Mr. Raya:
HUMAN RESOURCES
City of San Bernardino
The contract amendment has been executed by CaIPERS. The effective date of the
contract amendment is June 1, 2001.
If you have any questions regarding your contract, please do not hesitate to contact,
Jean Krum at (916) 326-3009.
Sincerely,
~~liL ~
Public Agency Contract Services
CC:cc
Enclosure
COJOS (Rev, 9199)
California Public Employees' Retirement System
Lincoln Plaza - 400 P Street - Sacramento, CA 95814
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): \6 - 16 ill
Vote: Ayes i - 'I Nays
Change to motion to amend original documents:
Item # '2'1
~
Abstain
Reso. # On Attachments: /
Conlracttenn:
Date Sent to Mayor: 10- n - 00 Date Returned from Mayor:
Date of Clerk's Signature: lc:rz.o-oo Reso. Log Updated:
IO)Cl--o.:J
Date Memo Sent to Department for Signature:
-
See Attached: ==- Date Returned:
Date Letter Sent to Outside Party for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Attached:
Note on Resolution of Attachment stored separately: ~
Direct City Clerk (circle I): PUBLISH, POST, RECORD W/COUNTY Date:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITV Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distribut/o:
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
Police
Public Services
Water
Notes:
Resolution #
~
Absent
NullNoid After:
Date of Mayor's Signatu e:
Seal Impressed:
\ Cd q -co
Date Returned: ol-I-Q
See Attached: -
VesL- No By
Ves No --L- By
Ves No ~ By
Ves NO-f By
Ves No By
EDA
Finance
MIS
Others:
BEFORE FILING REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANS RRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: fYI'
Date: \ \- \ -() ()