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CI~ OF SAN BERNAR'D~ - REQUIt5T FOR COUNCIL ACOON
REC'O.-AOHIH. OF'F.
Subject:
1985 MAR - 7 PM 3: I 9
Dept:
Personnel
Amendment of PERS contract to provide
for "One Year Final Compensation for
Loca 1 Pol ice Members"
From:
M,J, perlick
Date:
Synopsis of Previous Council ection: '"
Approved Pol ice Safety "MOU" which contained, as part of the agreement, the
implementation of the "one year final compensation" aka "highest last year"
formula for Police Safety for retirement purposes,
Recommended motion:
1. Adopt resolution of Intention to Amend Contract with the Public Employees'
Retirement System for Police Safety,
Note: This is one of the primary steps to implement this PERS benefit. The
actual date "highest last year" will be implemented for Police is estimated
as May 27,1985. On the implementation date, the 4% PERS that Police Safety
Unit members now receive will be reduced.
2. waive further first reading of ordinance and layover for final
adoption, to be considered at the meeting of April 15, 1985.
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ignature
,.
Contact person: M,J. Perlick
Phone:
383-5161
Supporting data attached:
Yes
Ward:
nla
FUNDING REQUIREMENTS: Amount: $225.000*
*Amount for a 12 month period as required per PERS dis-
closure rules.
Finance:
existinQ budQets
IJO-~ ~ ~
Source:
Council Notes:
75-0262
Agenda Item ~
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RESOLUTION NO.
RESOLUTION OF INTENTION OF THE CITY OF SAN BERNARDINO TO
APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE
CITY COUNCIL OF THE CITY OF SAN BERNARDINO PROVIDING FOR ONE YEAR
FINAL COMPENSATION FOR RETIREMENT PURPOSES FOR LOCAL POLICE
MEMBERS.
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 procedure by which said public agencies may elect
to subject themselves and their employees to amendments to said
Law7 and
WHEREAS, one of the steps in the procedure 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 change proposed in said contract7 and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20024.2 (One-year final
compensation) for local police members.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Common
Council of the City of San Bernardino do hereby give notice of
intention to approve an amendment to the contract between the said
governing body 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.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
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Bernardino at a
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c:> meeting thereof, held ~
the
day of
, 1985, by the following vote,
to wit:
AYES:
Council Members
NAYS:
ABSENT:
of
City Clerk
The foregoing resolution is hereby approved this
, 1985.
day
Mayor of the City of San Bernardino
Approved as to form:
/~t!~)/-I~:::
City Attorney
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" . .:'::' "':'~!B'T ONLY"
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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, herein-
a:~er referred to as Board, and the governing body of above public agency, here-
:=:fter referred to as Public Agency, having entered into a contract effective
~~:h 1, 1945, and witnessed February 6, 1945, and as amended effective
~:Tember 1, 1949, September 1, 1951, January 1, 1952, July 1, 1954, February 1,
, ;~.5, February 24, 1969, March 8, 1971, October 1, 1973, October 28, 1974,
~:~ch 17, 1975, April 28, 1975. November 10, 1975, July 6, 1977, and January 7,
';?5, which provides for participation of Public Agency in said System, Board
~: Public Agency hereby agree as follows:
1- Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective January 7, 1985, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
1. All words and terms used herein which are defined in the Public Employ-
ees' Retirement Law shall have the mean ins as defined therein unless
otherwise specifically provided. "Normal retirement age" shall mean
ale 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 herein-
after 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 ~xcept 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 mem-
bers 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 saf~ty members (herein referred to as
local miscell"neous members).
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PLEAS:
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S!GN "EXHIBIT ONLY"
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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; AND
b. LIBRARY PAGES HIRED ON OR AFTER MARCH 17, 1975.
5. Effective October 28, 1974, 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.
6. The fraction 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 (21 at age 60 Full),
7. The fraction 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 21252.01 of said Retireaent Law
(21 at age 50 Full).
8. The following additional provisions of the Public Employees' Retire-
ment Law. which ,apply only upon election ,of a contracting agency.
shall apply to the Public Agency and its employees:
a. Sections 21263. 21263.1 and 21263.3 (Post-Retirement Survivor
Allowance). for local miscellaneous members only,
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b. Section 21222.1 (Special 51 Increase - 1970). Legislation
repealed said Section effective January 1, 1979,
c. Section 20024.2 (One-Year Final Compensation).
d. Section 20930.3 (Military Service Credit) as defined in Chapter
1437. Statutes of 1974. .
e. Section 21222.2 (Special 51 Increase - 1971). Legislation
repealed said Section effective January 1. 1979.
f.
Section 21222.6 (Special 151 Increase for Local Miscellaneous
Members) as defined pursuant to Government Code Section 21222.6.
,,'
9. Public Agency, in accordance with Section 20740, Government Code.
ceased to be an "employer" for purposes of Chapter 6 of the Public
Employees' Retirement Law effective on April 28, 1975. Accumulated
contributions of Public Agency as of the aforementioned date shall be
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fixed and determined as provided in Section 20759, Government Code,
and accumulated contributions as of_ the aforementioned date and
contributions thereafter made shalt be held by the Board as provided
in Section 20759, Government Code.
10. Public Agency shall contribute to said Retirement System as follows:
a.
With respect to local miscellaneous members, the agency shall
contribute the following percentages of monthly salaries earned
as local miscellaneous members of said Retirement System:
(1) 0.636 percent until June 30, 2000 on account of the
liability for prior service benefits. (Subject to annual
change. )
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(2) 17.466 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change.)
b. With respect to local safety members, the agency shall contribute
the following percentages of monthly salaries earned as local
safety members of said Retirement System:
(1) 0.212 percent until June 30, 2001 on account of the
liability for prior service benefits. (Subject to annual
change.)
(2) 32.280 percent until June 30, 2000 on account or the
liability for current service benefits. (Subject to annual
change. )
i
c. A reasonable amount, as fixed by the Board, payable in one in-
stall~nt within 60 days of date of contract to cover the costs
of administering said System as it affects the employees or
Public Agency, not including the costs of special valuations or
or the periodic investigation and valuations required by law.
d. A reasonable amount, as fixed by the Board,'payable in one in-
stallment as the occasions arise, to cover the costs or special
valuations on account of employees of Public Agency, and costs or
the periodic investigation and valuations required by law.
11. 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.
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12. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within thirty 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 cor-
rect 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
19_~
day of
,
Witness our hands the
day of
,19_.
BO~RD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF SAN BERNARDINO
BY
SIDNEY C, McCAUSLAND,
EXECUTIVE OFFICER
BY
Presiding Officer
Approved all to t01'l1:
Attest:
PERS CON-702