HomeMy WebLinkAboutMC-1365
Adopted: October 3, 2011
Effective: October 3, 2011
Ordinance No MC-1365
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AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZIN
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SA
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM; DECLARING THE URGENC
THEREOF AND TAKING EFFECT IMMEDIATELY.
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WHEREAS, the City of San Bernardino ("City") participates in the California Publi
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Employees' Retirement System (CaIPERS) for the benefit of its employees and the public i
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serves; and
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WHEREAS, Sections 31 and 121 of the City Charter provide for the adoption of
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urgency ordinance for the immediate preservation of the public peace, health or safety if passe
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by a two-thirds (2/3) vote of the Council; and
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WHEREAS, as part of the economic downturn, the City has experienced significan
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revenue shortfalls and has been working to identify cost savings throughout the City structure
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including through labor negotiations with various bargaining units; and
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WHEREAS, due to the ongoing economic difficulties, the City recently negotiated an
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approved revised agreements with its Miscellaneous groups whereby the new Miscellaneou
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employees will be subject to a two-tier retirement benefit from 2.7% @ 55 to 2% @ 55; and
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WHEREAS, cost-cutting measures to programs and services have been identified b
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City staff, but it is essential that the CalPERS contract amendment take effect on October 4
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2011, to provide City with the immediate associated cost savings; and
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WHEREAS, the Mayor and Common Council hereby find that there is a curren
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immediate threat to the public peace, health, safety or welfare so that implementing th
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amendment to the City's CalPERS contract to add the new Miscellaneous pension formula t
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reduce the City's contribution rate and immediately maximize cost savings to the City i
necessary to reduce the threat to public peace, health, safety or welfare; and
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MC-1365
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AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZIN
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SA
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM; DECLARING THE URGENC
THEREOF AND TAKING EFFECT IMMEDIA TEL Y.
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WHEREAS, the Public Employees' Retirement Law permits the participation of publi
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agencies and their employees in the Public Employee's Retirement System by the execution of
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contract and sets forth the procedure by which said public agencies may elect to subjec
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themselves and their employees to amendments to said Law; and
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WHEREAS, this Ordinance is an Urgency Ordinance necessary for the immediat
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preservation of the public peace, health, and safety;
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NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CIT
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OF SAN BERNARDINO DO ORDAIN AS FOLLOWS:
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SECTION 1. The above recitals are true and correct and serve as the findings of th
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Mayor and Common Council.
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SECTION 2. That an amendment to the contract between the City and the Board 0
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Administration of CalPERS is hereby authorized; a copy of said amendment being attache
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hereto marked Exhibit "A" and by such reference made a part hereof as though herein set out i
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full.
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SECTION 3. The Mayor of the City of San Bernardino is hereby authorized
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empowered and directed to execute said amendment for and on behalf of said Agency.
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SECTION 4. Pursuant to Sections 31 and 121 of the Charter of the City
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Bernardino, this Urgency Ordinance shall take effect immediately upon adoption by the Mayo
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and Common Council, allowing immediate implementation of the new pension formula on
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MC-1365
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AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZIN
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SA
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM; DECLARING THE URGENC
THEREOF AND TAKING EFFECT IMMEDIATELY.
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October 4, 2011, pursuant to Government Code Section 20471 and City of San Bernardin
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Charter Sections 31 and 121.
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SECTION 5. The City Clerk shall certifY the adoption of this Ordinance and shall caus
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the same to be published in accordance with the City Charter and as required by applicable laws.
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SECTION 6. If any section, subsection, subdivision, sentence, clause or phrase in thi
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Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffectiv
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by any court of competent jurisdiction, such decision shall not affect the validity or effectivenes
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of the remaining portions of this Ordinance or any part thereof. The Mayor and Commo
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Council hereby declares that it would have adopted each section irrespective of the fact that an
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one or more subsections, subdivisions, sentences, clauses, or phrases be declare
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unconstitutional, invalid, or ineffective.
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III
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III
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III
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III
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III
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III
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III
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III
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MC-1365
2
AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZIN
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SA
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM; DECLARING THE URGENC
THEREOF AND TAKING EFFECT IMMEDIATELY.
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I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor an
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the Common Council of the City of San Bernardino at a joint regular meeting thereof, hel
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on 3rd day of October
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COUNCILMEMBERS:
9 MARQUEZ
10 JENKINS
11 BRINKER
SHORETT
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KELLEY
13 JOHNSON
14 MCCAMMACK
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, 2011, by the following vote, to wit:
AYES
NA YES
ABSTAIN ABSENT
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x
x
x
x
x
x
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Rachel G. Clark, City Clerk
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The foregoing resolution IS hereby approved this
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day 0
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October
,2011.
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Approved as to form:
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JAMES F. PENMAN,
City Attorney
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S: enda Items\PERS\Urgency Ordinance.2.0%@55.2011.doc
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MC-1365
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CalPERS
EXHIBIT A
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California
Public Employees' Retirement System
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AMENDMENT TO CONTRACT
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Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of San Bernardino
.
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,
November 1, 1999, June 1, 2001, July 1, 2001, January 1, 2008, January 1, 2009 and
September 1, 2011 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A Paragraphs 1 through 16 are hereby stricken from said contract as executed
effective September 1, 2011, and hereby replaced by the following paragraphs
numbered 1 through 17 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 50 for local safety
members entering membership in the safety classification on or prior to
September 1, 2011, and age 55 for local safety members entering
membership for the first time in the safety classification after September 1,
2011.
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MC-1365
EXHIBIT A
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.
Public Agency agrees to indemnify, defend and hold harmless 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 formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CalPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for under
the California Public Employees' Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 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.
(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.
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MC-1365
EXHIBIT A
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).
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; 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. Government 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.
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).
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MC-1365
EXHIBIT A
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 and not entering membership for
the first time in the miscellaneous classification after the effective date of
this amendment to contract shall be determined in accordance with
Section 21354.5 of said Retirement Law (2.7% at age 55 Full).
The percentage of final compensation to be provided for each year of
credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract shall be determined in
accordance with Section 21354 (2% at age 55 Full).
10. 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 September 1, 2011
shall be determined in accordance with Section 21362.2 of said
Retirement Law (3% at age 50 Full).
11. 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 September 1, 2011 shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
12. 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.
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members and local fire members only.
MC-1365
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EXHIBIT A
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Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
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Section 21635 (Post-Retirement Survivor Allowance to Continue
After Remarriage) for local fire members only.
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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
September 1, 2011.
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Section 21354 (2% @ 55 Full formula) is applicable to local
miscellaneous members entering membership for the first time in
the miscellaneous classification after the effective date of this
amendment to contract.
13. 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.
14. 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.
15. 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.
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MC-1365
EXHIBIT A
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.
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.
This amendment shall be effective on the 4th day of October
, 2011 .
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SAN BERNARDINO
BY ~~~~
DARR L WATSON, CHIEF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT ER# 61
PERS-CON-702A
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PRESIDING F CER
~_S.J.oll
Witness Date
Attest:
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