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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Linn Livingston
Subject: ORDINANCE OF THE CITY
OF SAN BERNARDINO AMENDING
THE CONTRACT BETWEEN THE
PUBLIC EMPLOYEES' RETIREMENT
SYSTEM AND THE CITY OF SAN
BERNARDINO ESTABLISHING A
TWO-TIER RETIREMENT BENEFIT
FORMULA FROM 3% @ 50 TO 3% @
55 FOR NEW SAFETY EMPLOYEES -
FINAL READING OF ORDINANCE
Dept:
Date:
Human Resources
July 6, 2011
MICC Meeting Date: July 18, 2011
Synopsis of Previous Council Action:
On July 5, 2011, the Mayor and Common Council approved that said Ordinance be laid
over for final adoption.
On June 20, 2011, the Mayor and Common Council approved a Resolution of Intention
authorizing an amendment to the contract between the Public Employees' Retirement
System and the City of San Bernardino establishing a two-tier retirement benefit formula
from 3% @ 50 to 3% @ 55 for new safety employees.
Recommended Motion:
Adopt Ordinance.
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Contact person: Linn Livinqston
Phone:
384-5161
Supporting data attached:
Ward:
FUNDING REQUIREMENTS: Amount:
No Financial Impact.
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
Agenda Item No. II
01-{~-()-a"
N~w ~k:up
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: LINN LIVINGSTON, DIRECTOR
OF HUMAN RESOURCES
Dept: HUMAN RESOURCES
Date: June 20, 2011
Subject: ORDINANCE OF THE CITY
OF SAN BERNARDINO AMENDING
THE CONTRACT BETWEEN THE
PUBLIC EMPLOYEES' RETIREMENT
SYSTEM AND THE CITY OF SAN
BERNARDINO ESTABLISHING A
TWO.TIER RETIREMENT BENEFIT
FORMULA FROM 3% @ 50 TO 3% @
55 FOR NEW SAFETY EMPLOYEES.
MICC Meeting Date: July 5, 2011
Synopsis of Previous Council Action:
On June 20, 2011, the Mayor and Common Council approved a Resolution of Intention
authorizing an amendment to the contract between the Public Employees' Retirement
System and the City of San Bernardino establishing a two-tier retirement benefit formula
from 3% @ 50 to 3% @ 55 for new safety employees.
On July 21, 2008, the Mayor and Common Council approved an ordinance authorizing
the contract between the Public Employees' Retirement System (PERS) and the City of
San Bernardino to provide a 3% @ 50 retirement benefit for Safety Employees.
Recommended Motion:
That said Ordinance be laid over for final adoption.
J).
r~ll-(/V(~ )
Signature "
Contact person: Linn Livinaston
384-5161
Supporting data attached:
Phone:
Ward:
FUNDING REQUIREMENTS: Amount:
NO FINANCIAL IMPACT
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
Agenda Item No. ;; I
01-l0~ d~11
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subiect:
Ordinance of the City of San Bernardino amending the contract between the Public Employees'
Retirement System and the City of San Bernardino establishing a two-tier retirement benefit
formula from 3% @ 50 to 3% @ 55 for new safety employees.
Backl!round:
In July of2008, the Mayor and Common Council approved a contract between the Public
Employees' Retirement System (PERS) and the City of San Bernardino to provide a 3% @ 50
retirement benefit for Safety Employees.
On June 20, 2011, the Mayor and Common Council approved the Resolution of Intention
authorizing an amendment to the contract, establishing a two-tier retirement benefit formula
from 3% @ 50 to 3% @ 55 for new safety employees (Resolution No. 2011-145).
As per the Schedule of Agency Actions required by PERS, attached is an Ordinance (Exhibit A)
for contract amendment. The Human Resources Department is recommending approval of said
Ordinance for first reading.
Financial Impact:
There is no financial impact.
Recommendation:
That said Ordinance be laid over for final adoption.
2
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Ordinance No
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AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CIT
OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO THE CONTRAC
BETWEEN THE MAYOR AND COMMON COUNCIL OF THE CITY OF S
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALIFO
PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
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5
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THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDIN
DO ORDAIN AS FOLLOWS:
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SECTION 1. That an amendment to the contract between the Mayor and Connno
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Council of the City of San Bernardino and the Board of Administration of the California Publi
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Employees' Retirement System is hereby authorized, a copy of said amendment being attache
1]
hereto, marked Exhibit "A" and by such reference made a part hereof as though herein set out.
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SECTION 2. The Mayor of the City of San Bernardino is hereby authorized, empowere
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and directed to execute said amendment for and on behalf of said Agency.
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SECTION 3. This Ordinance shall take effect thirty (30) days after the date of it
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adoption, and within 30 days from the passage thereof, shall be published at least once in the S
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Bernardino County Sun, a newspaper of general circulation, published and circulated in the Ci
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of San Bernardino and thenceforth and thereafter the same shall be in full force and effect.
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III
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III
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III
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III
24 III
25 III
-1-
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CIT
OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO THE CONTRA
2 BETWEEN THE MAYOR AND COMMON COUNCIL OF THE CITY OF S
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNI
3 PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
the Common Council of the City of San Bernardino at a
meeting thereof, hel
4
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor an
5
6
, 20 II, by the following vote, to wit:
AYES
NA YES
ABSTAIN ABSENT
Rachel G. Clark, City Clerk
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The foregoing resolution IS hereby approved this
day 0
19
,2011.
20
21
Patrick J. Morris, Mayor
City of San Bernardino
22 Approved as to form:
23
JAMES F. PENMAN,
24 City Attorney
25
enda Items:Ordinance.3%@55.201 I
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CaIPERS
EXHIBIT "A"
Califarnia
Public Emplayees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
Ci ty of San Bernardino
.
The Baard af Administratian, Califarnia Public Employees' Retirement System,
. hereinafter referred to. as Baard, and the gaverning bady af the abave public agency,
hereinaf::ec referred to. as Public Agency, having entered into. a con~ract effective March
1, 1945, and witnessed February 6, 1945, and as amended effective Navember 1, 1949,
September 1, .1951, January 1, 1952, July 1, 195.4, February. 1, 1965,.February 24,
1969, March 8, 1971, Octaber 1, 1973, Octaber 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,
Navember 1, 1999, June 1, 2001, July 1, 2001, January 1, 2008, and January 1, 2009
which pravides far participatian af Public Agency in said System, Baard and Public
Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said cantract as executed
effective January 1, 2009, and hereby replaced by the fallowing paragraphs
numbered 1 through 16 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 pravided. "Narmal retirement age" shall
mean age 55 for local miscellaneous members; age 50 far lacal safety
members entering membership in the safety classificatian on ar prior to.
the effective date of this amendment to contract, and age 55 for lacal
safety members entering membership far the first time in the safety
classification after the effective date of this amendment to contract.
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2. Public Agency shall participate in the Public Employees' Retirement
System from and after March 1, 1~45 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. Public Agency agrees to indemnify, defend and hold hanmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, the CalPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non-CaIPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or fonmulas that are different than
existing retirement benefits, provisions or fonmulas.
(c) Public Agency's agreement with a third party other than
CalPERS to prol!iJ~e retirement benefits, provisions, or formulas
that are different them the retirement benefits, provisions or
f9rmulas provided under this Contract and provided for under
ttie California Public Employees' Retirement Law.
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(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) ofTitle 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CaIPERS' Board of Administration.
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(f) The termination of this Contract either voluntarily by request of
- - Public Agency or involuntarily pursuant to the Public Employees' -
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
4. 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).
5. 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;
"I::, 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).
6. 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 PERS membership by contract. Govemment Code
Section 20336 superseded this contract provision by providing that any
such temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975. Legislation repealed and
replaced said Section with Government Code Section 20305 effective July
1,1994.
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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 January 1, 2008 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after January 1, 2008 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member entering
membership in the safety classification on or prior to the effective date of
this amendment to contract shall be determined in accordance with
Section 21362.2 of said Retirement Law (3% at age 50 Full).
10. The percentage of final compensation to be provided for each year of
credited current service as a local safety member entering membership for
the first time in the safety classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
11. 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 (One-Time 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).
e. Section 21222.2 (One-Time 5% Increase - 1971). Legislation
repealed said Section effective January 1,1980.
f. Section 21319 (One-Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971). Legislation
repealed said Section effective January 1, 2002.
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g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members and local fire 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.
j. Section 20475 (Different Level of Benefits). Section 21363.1 (3%
@ 55 Full formUla) is applicable to local safety members entering
membership for the first time in the safety classification after the
effective date of this amendment to contract.
12. 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.
13. 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.
14. PubJicAgency shall also contribute to said Retirement System \l~ [ollows:
-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.
15. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on accotJnt 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.
16. 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
~"."
BOARDOf>ADMINISTRATION CITY COUNCIL
PUBLIC EMpLOYEES' RETIREMENT SYSTEM CITY OF SAN BERNARDINO
BY
DARRYL WATSON, CHIEF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk
AMENDMENT ER# 61
PERS-CON.702A
CAL:lFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
ofthe
(governing body)
(public agency)
on
(date)
Clerk/Secretary
Title
PERS-CON-12 (rev. 1/96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 20475
I hereby certify that the
of the
(governing body)
(public agency)
has fully discharged all of the obligation imposed by Chapter 10 (commencing with
Section 3500) of Division 4 of Title 1, Government Code.
By
Title
Witness
Date
PERS-CON-30 (Rev. 1/96)
CAL:lFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
(888) CalPERS (225-7377)
SUMMARY OF MAJOR PROVISIONS
3% @ 55 Formula (Section 21363.1)
Local Safety Members
SERVICE RETIREMENT
To be eligible for service retirement, a member must be at least age 50 and have five years of
CalPERS credited service. If provided by the employer's contract, mandatory retirement age for
local safety members is age 60.
The monthly retirement allowance is determined by age at retirement, years of service credit and
final compensation. The basic benefit is 3% of final compensation for each year of credited
service upon retirement at age 55. If retirement is earlier than age 55, the percentage of final
compensation decreases for each quart~r year of attained age to 2.40% at age 50. The allowance
is limited to 90% of final compensation.
Final compensation is the average monthly pay rate during the last consecutive 36 months of
employment, or 12 months if provided by the employer's contract, unless the member designates a
different period of 36 or 12 consecutive months when the average pay rate was higher. Certain
items of special compensation earned during your final compensation period will be included in
your final compensation, in accordance with Board regulations.
DISABILITY RETIREMENT
Members substantially incapacitated from performing the usual duties for the position for hislher
current employer would be eligible for disability retirement provided they have at least five years of
service credit. The monthly retirement allowance is 1.8% of final compensation for each year of
~.. service. The maximum percentage for members who have between 10.000 and 18.518 years of
service credit is one-third of their final compensation. If the member is eligible for service
retirement the member will receive the highest allowance payable, service or disability. If provided
by the employer's contract, the benefit would be a minimum of 30% of final compensation for the
first five years of service credit, plus 1 % for each additional year of service to a maximum benefit
of 50% of final compensation.
INDUSTRIAL DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties, as defined above under
Disability Retirement, and the disability is a result of a job-related injury or illness may receive an
Industrial Disability Retirement benefit equal to 50% of their final compensation. If provided in the
employer's contract and the member is totally disabled, the disability retirement allowance would
equal 75% of final compensation in lieu of the disability retirement allowance otherwise provided.
If the member is eligible for service retirement, the service retirement allowance is payable. The
total allowance cannot exceed 90% of final compensation.
PRE-RETIREMENT DEATH BENEFITS
Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up to
six months' pay (one month's salary rate for each year of current service to a maximum of six
months).
PERS-CON-53 (rev. 6/07)
1957 Survivor Benefit: An eligible beneficiary may elect to receive either the Basic Death Benefit or
the 1957 Survivor Benefit. The 1957 Survivor Benefit provides a monthly allowance equal to one-
half of the highest service retirement allowance the member would have received had he/she
retired on the date of death. The 1957 Survivor Benefit is payable to the surviving spouse or
registered domestic partner until death or to eligible unmarried children until age 18.
1959 Survivor Benefit: (If provided by the employer's contract and the member is not covered
under social security.) A surviving spouse or registered domestic partner and eligible children may
receive a monthly allowance as determine by the level of coverage. This benefit is payable in
addition to the Basic Death Benefit or 1957 Survivor Benefit. Children are eligible if under age 22
and unmarried.
Pre-Retirement Option 2W Death Benefit: (If provided by the employer's contract.) The spouse or
registered domestic partner of a deceased member, who was eligible to retire for service at the
time of death, may to elect to receive the Pre-Retirement Option 2W Death Benefit in lieu of the
lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the
member would have received if he/she had retired for service on the date of death and elected
Option 2W, the highest monthly allowance a member can leave a spouse or registered domestic
partner.
Special Death Benefit: A surviving spouse, registered domestic partner, or eligible children or step
children may receive a monthly allowance equal to one-half of the final compensation. If the cause
of death is due to external violence or physical force while on the job, and there are eligible
surviving children in addition to a spouse or registered domestic partner, the allowance may be
increased to a maximum of 75%.
COST-OF-L1VING ADJUSTMENTS
The cost of living allowance increases are limited to a maximum of 2% compounded annually
unless the employer's contract provides a 3, 4, or 5% increase.
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DEATH AFTER RETIREMENT
. . .
The lump sum death benefit is $500 (or $600, $2,000, $3,000, $4,000 or $5,000 if provided by the
employer's contract) regardless of the retirement plan chosen by the member at the time of
retirement.
TERMINATION OF EMPLOYMENT
Members who have separated from employment may elect to leave their contributions on deposit
or request a refund of contributions and interest. Those who leave their contributions on deposit
may apply at a later date for a monthly retirement allowance if the minimum service and age
requirements are met. Members who request a refund of their contributions terminate their
membership and are not eligible for any future benefits unless they return to CalPERS
membership.
EMPLOYEE CONTRIBUTIONS
Local safety members covered by the 3% @ 55 formula contribute 9% of reportable earnings.
Those covered under a modified formula (coordinated with Social Security) do not contribute on
the first $133.33 earned.
The employer also contributes toward the cost of the benefits. The amount contributed by the
employer for current service retirement benefits generally exceeds the cost to the employee. In
addition, the employer bears the entire cost of prior service benefits (the period of time before the
employer provided retirement coverage under CaIPERS). All employer contribution rates are
subject to adjustment by the CalPERS Board of Administration.
PERS-CON-53 (rev. 6/07)