HomeMy WebLinkAboutR20-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM: Gary Van Osdel
Executive Director
SUBJECT:
PERS Contract Amendment
DATE: February 20, 2003
ORIGINAL
Svnopsis of Previous Commission/Council/Committee Action{s):
On December 16, 2002, the Community Development Commission approved to amend the Public Employees Retirement
Contract to provide the 3%@60retirementplaneffectiveJuly 1,2003.
Recommended Motion{s):
(Community Development Commission)
MOTION:
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN
THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM AND THE COMMISSIONERS SAN BERNARDINO ECONOMIC DEVELOPMENT
AGENCY.
Contact Person(s): Barbara Lindseth/Gary Van Osdel
Phone: 663-1044
Project Area(s):
NA
Ward(s): All
Supporting Data Attached:lRI Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LtrlMemo
FUNDING REQUIREMENTS: Amount: FY 03-04 NA
Source: PERS Sum Ius/Over Funded
Budget Authority: NA
SIGNATURE:
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Barbara Lindseth
Admin Services Director
Commission/Council Notes:
~~~~-~)~~-~-~~---------------------------------------------------------------------------------
GVO:BI:Agenda CDC-PERS Amend 03.doc COMMISSION MEETING AGENDA
MEETING DATE: 03/17/03
Agenda Item Number: /{:J.!J
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Public Emplovees Retirement System Contract Amendment
Back2round:
On December 16, 2002, the Community Development Commission ("Commission") approved to
amend the Public Employees Retirement System ("PERS") Contract to provide the 3% @ 60
retirement plan for active Agency employees effective July 1,2003. At that time, staff indicated that
two (2) Resolutions, a Resolution ofIntention and a Final Resolution, would be brought before the
Commission at a later date to finalize the Contract Amendment.
Current Issue:
At this time, PERS requires that the Commission adopt a Resolution ofIntention and, in accordance
with Government Code Section 7507, that the future annual cost of the proposed Contract
Amendment be made public at a public meeting at least two (2) weeks prior to the adoption of the
Final Resolution. Also, PERS requires that there must be a 20 day period between the Resolution of
Intention and the adoption of the Final Resolution pursuant to Government Code Section 20471.
The Final Resolution authorizing the Contract Amendment is anticipated to be presented to the
Community Development Commission for adoption on April 17, 2003.
In accordance with Government Code Section 7507, the following financial information is disclosed:
1. Change in the Present Value of Benefits:
As of June 30, 2001 Current Plan Post-Amendment
Total Assets at Market Value (MVA) $8,740,718 $8,740,718
Actuarial Value of Assets (AVA) 9,421,109 9.421,109
AVA / MVA 107.8% 107.8%
Present Value of Projected Benefits (PVB) $7.471,970 $8,645,512
Actuarial Value of Assets (AVA) 9.421.109 9.421.109
Present Value of Future Employers and
Employee Contributions (PVB - AVA) (1,949,139) (775,597)
Change to PVB 1,173,542
GVO:Bl:Agenda CDC-PERS Amend 03.doc
COMMISSION MEETING AGENDA
MEETING DATE: 03/17/03
Agenda Item Number: RJ1. f)
Community Development Commission Agenda
PERS Contract Amendment
Staff Report
Page - 2-
2. Change in the Accrued Liability:
As of June 20, 2001 Current Plan Post-Amendment
Entry Age Normal Accrued Liability (AL) $5,996,355 $6,859,100
Actuarial Value of Assets (AVA) 9.421.109 9.421.109
Unfunded Liability/(Excess Assets)
(UAL = AL - AVA) (3,424,754) (2,562,009)
Funded Ratio (AVA 1 AL) 157.1% 137.4%
Change to Accrued Liability (AL) 862,745
3. Changes in the Total Employer Rate
As of June 3D, 2001 Current Plan Post-Amendment
2003-04 Total Employer Rate 0.00% 0.00%
2003-04 Total Employee Rate 7.00% 8.00%
Change to Total Employee Rate 1.00%
(To be paid by employee)
2004-05 Estimated Employer Rate
(Recognizing -6% investment return for
2001-2002) 0.00% 4.3%
Environmental Impact:
None.
GVO:Bl:Agenda CDC-PERS Amend 03.doc
COMMISSION MEETING AGENDA
MEETING DATE: 03/17103
Agenda Item Number: t.J..O
Community Development Commission Agenda
PERS Contract Amendment
Staff Report
Page-3-
Fiscal Impact:
The employer's rate for the fiscal year 2003-04 will be 0.00% and, hence, there will be no additional
cost to the Agency. As of July 1, 2003, the employee's rate will increase by 1% to a total of8%.
The cost to the Agency employees will be I % of gross monthly salary. It is estimated, at this time,
that the employer's rate will be 4.3% in fiscal year 2004-05 ($58,000).
Recommendation:
Based upon the foregoing, staff recommends the adoption of the Resolution.
7
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Barbara Lindseth
Administrative Services Director
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GVO:Bl:Agenda CDC-PERS Amend 03.doc
COMMISSION MEETING AGENDA
MEETING DATE: 03/17/03
Agenda Item Number: I<.J. 0
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
COMMISSIONERS
SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY
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 Law; and
WHEREAS, one of the steps in the procedures 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 contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 21354.3 (3% @ 60 Full formula) for
local miscellaneous members.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the
contract between said public agency 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.
By:
Presiding Officer
Title
Date adopted and approved
Approved as to form
legal cp
By: .
(Amendment)
CON-302 (Rev. 4/96)
A
CalPERS
EXHIBIT
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
Commissioners
San Bernardino Economic Development Agency
.
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 August
1, 1982, and witnessed July 19, 1982, and as amended effective July 1, 1988, April 8,
1997 and July 1, 2001 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 contr~ct as executed
effective July 1, 2001, and hereby replaced by the following paragraphs
numbered 1 through 14 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.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after August 1, 1982 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.
'1LEASE DO NOT SIGN "EXHIBIT ONLY"
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. 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. SAFETY EMPLOYEES.
5. This contract shall be a continuation of the benefits of the contract of the
Redevelopment Agency of the City of San Bernardino, hereinafter referred
to as "Former Agency", pursuant to Section 20508 of the Government
Code, Former Agency having ceased to exist and succeeded by Public
Agency on August 1, 1982. Public Agency, by this contract, assumes the
accumulated contributions and assets derived therefrom and liability for
prior and current service under Former Agency's contract with respect to
the Former Agency's employees. Legislation repealed Section 20508,
Statutes of 1949, effective January 1, 1988.
6. Public Agency and the City of San Bernardino have agreed to a merger of
the redevelopment function of the contract of the City of San Bernardino
into the contract of Public Agency. This contract shall be a continuation of
the contract of the City of San Bernardino, with respect to the
Redevelopment function, pursuant to Section 20567.5 of the Government
Code. Such merger is effective as of August 1, 1982. Legislation
repealed said Section effective January 1, 1988.
a. Service performed for the City of San Bernardino and the
Redevelopment Agency of the City of San Bernardino prior
to August 1, 1982 shall be subject to the terms and
conditions of the City of San Bernardino's contract as they
were in effect at that time in addition to the benefits provided
in this contract. Service performed after August 1, 1982
shall be subject to the terms and conditions of this contract.
For purposes of computing retirement allowances, separate
calculations shall be made for services performed under
each contract.
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 the effective date of the
amendment to contract shall be determined in accordance with Section
21354 of said Retirement Law (2% at age 55 Full).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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 the effective date of the amendment to contract
shall be determined in accordance with Section 21354.3 of said
Retirement Law (3% at age 60 Full).
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20042 (One-Year Final Compensation).
b. Section 20965 (Credit for Unused Sick Leave).
c. Sections 21624 and 21626 (Post-Retirement Survivor Allowance).
d. Section 21573 (Third Level of 1959 Survivor Benefits).
e. Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
10. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834.
11. 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 of said Retirement System.
12. 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 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 miscellaneous 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.
13. 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.
14. 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
~."
BOARD OF ADMINISTRAT~
PUBLIC EMPLOYEES' ~EMENT SYSTEM
~o/
~ .
~ ~ ~ ~
KENNETH W~ ffiZION, CHIEF PRESIDING OFFICER ~1.0
ACTUAR~~b",~ -eMPLOYER SERVICES DIVISION .gf
PUBLIC ~LOYEES' RETIREMENT SYSTEM .s:J;.
{:3 /.;:)
. ,,<<./ ~
' . v' Witness Date ~S
Attest: ~
~~
~
z,,,<",
:-.. v
Clerlciv
day of
COMMISSIONERS
SAN BERNARDINO ECONOMIC
DEVELOPMENT AGENCY
AMENDMENT ER# 1319
PERS-CON-702A (Rev. 8\02)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
I hereby certify that in accordance with Section 7507 of the Government Code
the future annual costs as determined by the System Actuary and/or the increase
in retirement benefit(s) have been made public at a public meeting of the
of the
(governing body)
(public agency)
(date)
which is at least two weeks prior to the adoption of the
on
Resolution / Ordinance.
Clerk/Secretary
Title
Date
PERS-CON.12A (rev. 1/96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
of the
(governing body)
(public agency)
on
(date)
Clerk/Secretary
Title
PERS-CON-12 (rev. 1/96)
..
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 3,' iI-C,:) Item # /Z-ZO Resolntion #
Vote: Ayes 1- '} Nays B Abstain ~
(0 Cc I zen? -.~.:;
,
Absent H-
Change to motion to amend original documents:
Reso. # On Attachments: ./
Contract term: -
NullNoid After: -
Note on Resolution of Attachment stored separately: ~
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
By: -
Date Sent to Mayor:
--\. ,S" 0 ->,
Reso. Log Updated: ./
,/
"
Date of Mayor's Signature: :; Ie, ~():3
Date ofClerklCDC Signature: J I (i "0 '3
Seal Impressed:
See Attached: Date Returned: -
See Attached:
See~~_
Date Memo/Letter Sent for Signature:
60 Day Reminder Letter Sent on 1(Jth day:
90 Day Reminder Letter Sent on 45th day:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
YesL No By
Yes No ,/ By
-
Yes No ...L By
Yes No / By
Yes NO? B
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance Dev. Services EDA ~ Finance
Police Public Services Water Others:
MIS
Notes:
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: /\y, Date: 2./;)\ I 0 '-3
Revised 01112/01