HomeMy WebLinkAbout30- Personnel CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:. BARBARA DILLON Subject: AN ORDINANCE OF THE CITY OF SAN
BERNARDINO AUTHORIZING AN AMENDMENT
Dept. PERSONNEL TO THE CONTRACT BETWEEN THE CITY OF
SAN BERNARDINO AND THE BOARD OF
Date: JUNE 3, 1996 D ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES'RETIREMENT SYSTEM
Synopsis of Previous Council Action:
On September 6, 1995, the Mayor and Common Council approved the Memorandum of
Understanding between the City of San Bernardino and employees in the Fire Safety Employees'
bargaining unit of the City of San Bernardino represented by the International Association of
Fire Fighters' Local 891.
On May 20, 1996, the Mayor and Common Council adopted Resolution No. 96-119, 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.
Recommended Motion:
That further reading of the ordinance be waived and it be
laid over for final adoption.
Signature
Contact person: Barbara Dillon Phone: 384-5161
Supporting data attached: Yes Ward:
FUNDING REQUIREMENTS: Amount: 1-?0?01n inrreace in emnlnver rnntrihntinn rate fnr all lnral
safety employees, effective July 1, 1997.
Source: (Acct. No.)
(Acct. Des lion)
Finance:
Council Notes:
Agenda Item No. 3
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
BACKGROUND
On May 20, 1996, the Mayor and Common Council adopted Resolution No. 96-119, 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.
Article 15, Retirement Plan, of the Fire Safety employees' MOU states in paragraph 5, "The
City will contract with PERS to additionally provide the Post-Survivors' Retirement Benefit, as
of August 1, 1996, upon approval by the Mayor and Common Council and by PERS."
Pursuant to PERS regulations, an ordinance of the City of San Bernardino and the Board of
Administration of the California Public Employees' Retirement System must be presented to the
Mayor and Common Council for approval.
ANALYSIS
The attached ordinance authorizes the Mayor and Common Council of the City of San
Bernardino to amend its contract with the Public Employees' Retirement System to provide
Section 21624, 21626 and 21628 (Post-Retirement Survivor Benefits) for local fire safety
members, with an extension of the funding period to the year 2011.
COSTING
An actuarial valuation was requested and performed by the Public Employees' Retirement
System, Actuarial and Employer Services Division. The estimated cost will be a 3.202%
increase to the employer contribution rate for all local safety members. The employer
contribution rate would reflect the increase effective July 1, 1997.
The actual cost of this benefit may differ somewhat from the estimated cost as provided above,
since current valuations are based on employees data and actuarial assumptions as of June 30,
1994. Future annual valuations will be based on new data and possible new assumptions.
RECOMMENDATION
Based on the foregoing, it is recommended that the ordinance be laid over for final adoption.
AGENDA:SR.PERS.ORDINANCE dm 6/3/96
ORDINANCE NO.
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN BERNARDINO
2 AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
3
4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO
5 ORDAIN AS FOLLOWS:
6 SECTION 1. The Mayor is hereby authorized and directed to approve an amendment to
7 the contract between the City of San Bernardino and the Board of Administration of the California
g Public Employees' Retirement System. A copy of said amendment is attached hereto as Exhibit
9 "A" and by such reference made a part hereof as though herein set out in full.
10 SECTION 2. The authorization to execute the above-referenced amendment to Contract
11 is rescinded if the parties to the Contract fail to execute it within sixty (60) days of the passage
12 of this Ordinance.
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28 DABJs[PERS.Ord] 1 May 30, 1996
AN ORDINANCE...AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY OF SAN BERNARDINO AND THE BOARD OF
1 ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM.
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and
3
Common Council of the City of San Bernardino at a meeting thereof,
4
held on the day of , 1996, by the following vote, to wit:
5
Council Members: AYES NAYS ABSTAIN ABSENT
6
NEGRETE
7
CURLIN
8
ARIAS
9
OBERHELMAN
10
DEVLIN
11
ANDERSON
12
MILLER
13
14
15 CITY CLERK
16 The foregoing Ordinance is hereby approved this day of , 1996
17
18
TOM MINOR, Mayor
19 City of San Bernardino
20
Approved as to form
21 and legal content:
22 JAMES F. PENMAN,
City Attorney
23
24 �+
25 By:
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28 DAB Js[PERS.Ord] 2 May 30, 1996
t
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 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 and August 27, 1990,
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 August 27,
1990, 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 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 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. 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 member, (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;
PLEASE DO NOT SIGN "EXHIBIT 0
NLY"
d. SENIOR LIFEGUARDS;
e. SUPERVISING LIFEGUARDS;
f. RECREATION INTERNS;
g. RECREATION AIDES;
h. RECREATION LEADERS;
i. SENIOR RECREATION LEADERS;
j. RECREATION SPECIALISTS;
k. LOCKER ATTENDANTS;
1. 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 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 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 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-Retirement Survivor Allowance)for local
miscellaneous members and local fire members only.
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).
g. Section 21573 (Third Level of 1959 Survivor Benefits) 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. Public Agency shall contribute $2.00 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 CITY COUNCIL
PUBLI*PLOYEES' RETIREMENT SYSTEM OF THF,O/
itrzt% CITY 0174,N BERNARDINO
BY � BY F
DIVISION C Presiding O W
ACTUARIAL PLOYER SERVICES DIVISION
PUBLIC EMPLOYE ' RETIREMENT SYSTEM
��
/
Witness Date
�y�
� y
O, Attest:
l`. O,y
AMENDMENT Clerk
PER-CON-702A (Rev. 1/96)