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HomeMy WebLinkAbout30-Personnel CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION . . From: Dept: BARBARA DILLON Subject: PERSONNEL JULY 7, 1997 r Cf:iui/~AL Date: JUL 0 8 1997 RESOLUTION OF THE MAYOR & COMMON COUNCIL . . . EXPRESSING ITS INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBUC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN BERNARDINO AN ORDINANCE. . . AUTHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBUC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN BERNARDINO Synopsis of Previous Council Action: On March 20, 1995, the Mayor and Common Council approved the Memorandum of Understanding between the City of San Bernardino and employ_ in the Police Safety Employ_' bergaining unit of the City of San Bernardino represented by the San Bernardino Police Officers' Association (SBPOA). On June 2, 1997, the Mayor and Common Council approved the Memorandum of Understanding between the City of San Bernardino and employ_ in the Fire Safety Employ_' bargaining unit of the City of San Bernardino represented by the International Association of Fire Fighters' Loca1 891. Recommended Motion: Motion 1: Adopt the resolution of the Mayor and Common Council of the City of San Bernardino expressing its intention to approve an amendment to the contract between the Board of Administration of the Public Employees' Retirement System and the City of San Bernardino. and Motion 2: That said ordinance be laid over. .A..-::; ~ .J/7 J \ A;'/ ./ /YJ) Signature Contact person: Barbara Dillon Supporting data attached: Yes FUNDING REQillREMENTS: Phone: 384-5161 Ward: Amount: 3.583% increase in emoloyer contribution rate for a1lloca1 safety employees. effective January 1. 1998. rce: (Acet. No.) Ordinance HC- / (}O / :1. Desc~~n) --;-9- n....nce: 'Y1I2/b/It~~/ Jf~ Council Notes: _ Previousl.y - t ;?51/+~, 01/21197 . Previousl.y - t I:? - DY/IN/97 ::tf ;30 ()j'107 Agenda Item '~ITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT BACKGROUND Police Safety On March 20, 1995, the Mayor and Common Council approved the Memorandum of Understanding between the City of San Bernardino and employees in the Police Safety employees' bargaining unit of the City of San Bernardino represented by the San Bernardino Police Officers' Association (SBPOA). Article III, Section 2, PERS - Retirement Plan, of said MOU states in subsection D, "The City will contract with PERS to additionally provide the Post-Retirement Survivors' Benefit, as of January I, 1998, upon approval by the Mayor and Common Council and by PERS." Fire Safety On June 2, 1997, 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. Article 15, Retirement Plan, of said MOU states in Section H, "Following Council approval of the 1997-1998 MOU, the City will begin the process to contract with PERS to additionally provide the "Post-Retirement Survivor Allowance to Continue After Remarriage." This benefit will also become effective January 1, 1998, upon approval by the Mayor and Common Council and by PERS. Pursuant to PERS regulations, the Mayor and Common Council must adopt a Resolution of Intention and an ordinance approving an amendment to the PERS contract. ANALYSIS The attached Resolution of Intention (Exhibit A) states the intention of 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 police safety members and to provide Section 21635 (post-Retirement Survivor Allowance to Continue After Remarriage) for local fire members only. Exhibit B is the ordinance, which is presented for a first reading. 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 3.583% increase to the employer contribution rate for all local safety members. The employer contribution rate would reflect the increase effective January 1, 1998. RECOMMENDATION Based on the foregoing, it is recommended that the Mayor and Common Council adopt; * Resolution of the Mayor and Common Council of the City of San Bernardino 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. and, * That said ordinance be laid over. e e e EXHIBIT 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, August 27, 1990, August 1, 1996, and July 3, 1997 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 July 3, 1997, 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); e e e PLEASE DO NOT SIGN "EXHIBIT ONLY" 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: B. 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). 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 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. 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 21353 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). b. Section 21222.1 (Special 5% Increase-1970). Legislation repealed said Section effective January 1, 1980. c. Section 20042 (One- Year Final Compensation). PLEASE DO NOT SIGN "EXHIBIT ONLY" e d. Section 21024 (Military Service Credit as Public Service), Statutes of 1974. e. Section 21222.2 (Special 5% Increase-l 971). 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. h. Section 20903 (Two Years Additional Service Credit) for local miscellaneous members only. 1. Section 21635 (Post-Retirement Survivor Allowance to Continue After Remarriage) 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. e 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. Per covered member, $1.50 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. e 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. r 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 1st day of January ,19~. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF SAN BERNARDINO ~~ KENNETH W. MARZION, CHIEF PRESiDING OF CER ACTUARIAL & EMPLOYER SERVICES DMSION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY W~ ~~, / '1 , 7 I Attest: (2jol. I ;b. ~ ~~ AMENDMENT PERS-CON-702A (Rev. 8\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 FINAL ACTION OF GOVERNING BODY I hereby certify that the MAYOR AIID COMMON COUHCIL (governing body) of the CITY OF SAIl BERHlIRDINO (public agency) adopted on AUGUST 18, 1997 . by an affirmative vote of a majority of the members of said (date) ORDIHAHCE (Ordinance or Resolution) attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the California Public Employees' Retirement System, a certified copy of said ORDIHAHCE in the form furnished by said Board of Administration Governing Body, No. Me-IDOl approving the (Ordinance or Resolution) being attached hereto. '~JL ~. ~ Clerk/S tary CITY CLERK Title Date ~ J..~.J,!17 PERS-CON-5 (Rev. 1/96) e e e CALlFORNIA 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) e e e 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 (governing body) of the (public agency) on which is at least two weeks prior to the adoption of the (date) Resolution/Ordinance. Clerk/Secretary Title Date PERS-CON-12A (rev. 1/96)