HomeMy WebLinkAbout13- 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
ORIGINAL SAN BERNARDINO AND THE BOARD OF
Date: JUNE 3, 1996 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 JUN 3-96A"'11:25
laid over for final adoption.
Signature
Contact person: Barbara Dillon Phone: 384-5161
Supporting data attached: Yes Ward:
FUNDING REQUIREMENTS: Amount: 202% inerenge in empinpr r•nntrihntinn rate fnr all Inc-A
safety employees, effective July 1, 1997.
Source: (Acct. No.)
(Acct. Des tion)
Finance: r
Council Notes: �i.2�1,vx�
Agenda Item No.-
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
I
The attached ordinance authorizes the Mayor and Common Council of the City of San
I 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
PERS CONT SERV DIV TEL : 916-326-3006 Sep 23 ' 96 16 :31 P4o . 011 P . 02
AM 21MMENT TO CON-TRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF SAM 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 I, 1954, February 1, 1965, February 24,
1969. March , 1971, October 1,
1973, October 28, 1974, March 17, 1.975, 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 aee 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 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;
PERS CONT SERV DIV TEL : 916-326-3005 Sep 23 '96 16 : 31 No . 011 P . 03
d. SENIOR LIFEGUARDS;
e• SUPERV'ISLNG LIFEGUARDS;
f. RECREATION INTERNS;
9. RECREATION AIDES;
h. RECREATION LEADERS;
L FOR RECREATION LEADERS;
d• RECREATION SPECIALISTS;
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 PERS
membership by contract- Government Code Section 20336 supersedes this contract
provision by providing that ally 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
8 p 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.
PERS CONT SERV DIV TEL :916-326-3005 Sep 23 '96 16 :32 No . 011 P . 04
10, Public Agencv 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. ail 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 mid 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 CMG I 19 of� .
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE
CITY OF SAN BERNARDINO
BY
DIVISION CHIEF F�residing Officer
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
`Nimes te -
Attest:
AMENDMENT "-
PER-CON-702A (Rev_ 1/96) Clerk—
CALIFORNIA PUBLIC ENWTI ,V S' RETIREMENT SYSTEM �-
kauafna Office
Public Agency Contract Services
P.O. Bex 942709
Sacramento, CA 94229-2709
(916) 326-3420
ANTic ATED SCHEDULE OF A ENCY ACTI ONS
The City of San Bernardino, #0061 hereby requests the documents necessary to amend its contract to
include the benefit as shown below. (Check the appropriate benefit, enter the dates each action will be
taken, sign and return the schedule.)
Sections 21263, 21.263.1 and 21263.3 (Post-Redreemeot Survivor Allowance) for local Care
members.
Sections 21263, 21263.1 and 21263-3 (Post-Retirement S Tivor Allowance) for local fire
members, inclu ung an extension of the funding period to the year 2011.
Sectdons 21263, 21263.1 and 21263.3 (Post-Retirememl Survivor Allowance) for local fire
members, including an extension of the funding period to the year 2016.
Fier date
1. 4/15/96 THE DATE YOUR AGENCY NEEDS THE RESOLUTION OF INTENTION FROM
THIS OFFICE TO INCLUDE IN AGENDA FOR YOUR GOVERNING BODY. This
daze must be at least four weeks from the date this form is received in the Public AQencv
Contract Services office.
2, 5/6/96 ADOPTION OF RESOLUTION OF INTENTION. The first reading of the Ordinance
may be held on the same day the Resolution of Intention is adopted.
3, N/A EMPLOYEE ELECTION. (Necessary for options which affect the employees' rate of
contribution.)
4, 6/3/96 ADOPTION OF FINAL ORDINANCE. This date cannot be earlier than 20 days after
adoption of the Resolution of Intention(date#2),
S. 7/15/96 EFFECTIVE DATE OF ORDINANCE. Usually 30 days following the date of adoption
(date #4), unless an Urgency Ordinance is adoptod waiving the 30 day period.
6. 8/1/96 EFFECTIVE DATE OF PERS AMENDMENT TO CONTRACT. If the employees'
rate of contribution will not be affected, this date can be the day following the effective
date of the Ordinance (date#5). If the employees' rate of contribution is affected, this
date cannot be earlier than the first day of a payroll period following the effective date
of the Ordinance (date #5).
BY BARBARA DILLON
=E DIRECTOR OF PERSONNEL
Date 1/30/95 TELEPHONE (909) 384-5161
THIS OFFICE WELL PREPARE ALL DOCUMENTS NECESSARY TO AMEND YOUR CONTRACT. IF
YOUR AGENCY ATTEMPTS TOEXpEDITE THE AMrNDMENTPROCESS BY PROCEEDING WITHOUT
TSE DOCUMENTS PROVIDED BY THIS OFFICE, LEGAL REVIEW MAY BE REQUUUD WHICH
COULD DELAY THE ANTICIPATED EF'FECT'IVE DATE OF TI3E AMENDMENT.
PERS-CON-8 (Ordinance)
lDAtr AIOSI