HomeMy WebLinkAboutR20-Economic Development Agency
,-
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM: Gary Van OsdeI
Executive Director
SUBJECT:
PERS Contract Amendment
DATE: January 23, 2001
ORIGINAL
Svnonsis oCPrevious Commlssloo/CouneWCommittee Action(s):
On September 18, 2000, the Community Development Commission approved to amend the Public Employees
Retirement Contract to provide the 2% @ 55 retirement plan effective June 30, 200 I.
Recommended Motion(s):
(Community Develonment 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 LindsethlGarv Van Osdel
Phone: 663-1044
Project Area(s):
NA
Ward(s): All
Supporting Data Attached:1Xl Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LtrlMemo
FUNDING REQUIREMENTS: Amount: $208.934
Source: PERS SuroluslOver Funded
SIGNATURE:
Budget Authority: N A
GARY AN OSDEL
Ex tive Director
~{~~~~j~?4-
Barbara Lindseth
Admin Services Director
Commissioo/CouneU Notes:
GVO:Bl:Agenda CDC-PERS Amendment
COMMISSION MEETING AGENDA
MEETING DATE: 03/05/01
Agenda Item Number: ..&aLl-
"
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
------------------------------------------------------------------------------------------------------------------
Public Emplovees Retirement System Contract Amendment
On September 18,2000, the Community Development Commission (Commission) approved to
amend the Public Employees Retirement System (PERS) Contract to provide the 2% @ 55
retirement plan for Agency employees effective June 30, 2001. At that time, staff indicated that
Resolutions would be brought before the Commission at a later date to finalize the Contract
Amendment.
The cost of the PERS plan amendment (2% @ 55 retirement plan) is a one-time payment to be
paid directly from the PERS surplus, which will not impact the Agency's cash flow. As of
September 2000 the estimated one-time implementation change, based upon the actuarials of June
30, 1998, was $379,000. Since then, the one-time implementation change due to plan amendment
has been recalculated by PERS to be $208,934, based upon the actuarials ofJune 30, 1999.
PERS requires that the Commission adopt a Resolution ofIntention on March 5, 2001 and a final
Resolution on Apri12, 2001. There must be a 20 day period between the Resolution ofIntention
and the adoption of the final Resolution pursuant to Government Code Section 20471. Further,
Government Code Section 7507 requires that the future annual costs 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. Based on this, PERS recommends that the following financial information be
disclosed due to the adoption of the plan amendment:
1. Change in the Present Value of Benefits:
Change Due to Post-Amendment
Pre-Amendment Plan Amendment Post Method
& Method Change Change
Total Present Value of Benefits S 6,367,152 S 601,870 S 6,%9,022
Actuarial Value of Plan Assets 8,046,549 392,936 8,439,485
Present Value of Future Employer
and Employee Contributions S (1,679,397) S 208,934 S (1,470,463)
------------------------------------------------------------------------------------------------------------------
GVO:BI:Agenda CDC-PERS Amendment
COMMISSION MEETING AGENDA
MEETING DATE: 03/05/01
Agenda Item Number: -Ra.D-
2. Change in the Unfunded Accrued Liability:
Change Due to Post-Amendment
Pre-Amendment Plan Amendment Post Method Change
& Method Change
Accrued Liability $ 5,035,940 $ 436,545 $ 5,472,485
Assets 8,046,549 392,936 8,439,485
Unfunded Liability $ (3,010,609) $ 43,609 $ (2,967,000)
Funded Ratio 159.8% 154.2%
3. Change in the employer rate:
0.000%
The Resolution ofIntention, original or certified copy, the Certificate of Governing Body's
Action (CON-12), original, and the Certification of Compliance with Government Code Section
7507 (CON-12A), original or certified copy, must be returned to PERS before PERS will forward
the actual contract amendment and other final documents necessary to complete the plan
amendment.
Based upon the foregoing, staff recornmends the adoption ofthe Resolution.
1/:(7 1/ / '--7/'
0w.-lflC-.c~ ---+-, 7("':J..-L '1
Barbara Lindseth
Administrative Services Director
GVO:Bl:Agenda CDC-PERS Amendment
COMMISSION MEETING AGENDA
MEETING DATE: 03105101
Agenda Item Number: -KiD...
CDC/2001-13 ~~
, ~@I~3f
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 (2% @ 55 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
(Amendment)
CON-302 (Rev. 4/96)
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CDC/2001-13
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO
2 CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND
3 THE COMMISSIONERS SAN BERNARDINO ECONOMIC
DEVELOPMENT AGENCY.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by
the Community Development Commission of the City of San Bernardino at a
joint
regular meeting thereof, held on the 5th day of March ,2001,
by the following vote, to wit.
Commission Members Ayes Nays Abstain Absent
ESTRADA x
LIEN x
-
MCGINNIS x
SCHNETZ x
SUAREZ x
ANDERSON x
MCCAMMACK x
The foregoing Resolution is hereby approved this 8th day of March ,2001.
() (ll i~/ x-/
1ddi Valles, Chairperson
/Co unity Development
" Commission of the City of
'-San Bernardino
Approv
I
By:,
Agency Counsel
CDC/2001-13
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 and April
8, 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 April 8, 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 55 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.
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 shall
be determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
'.
8. 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.
9. 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.
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 of said Retirement System.
11. 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.
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
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
COMMISSIONERS
SAN BERNARDINO ECONOMIC
DEVELOPMENTAGENGY
BY BY
KENNETH W. MARZION, CHIEF PRESIDING OFFICER
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
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 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)
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)
which is at least two weeks prior to the adoption of the
on
(date)
Resolution / Ordinance.
Clerk/Secretary
Title
Date
PERS-CON-l2A (rev. 1196)
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): ~- ~-t) \ Item #
Vote: Ayes l. L, <\-'\ Nays e-
.
Change to motion to amend original documents:
R:"2.() Resolution# <:Oc.-/2bOl-13
Abstain -e- Absent 2,
Reso. # On Attaclunents:
,/
Contract term:
Null/Void After:
-
Note on Resolution of Attaclunent stored separately: -=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY Date:
See Attached:=
Date Sent to Mayor: '3- (" - C \
Date of Mayor's Signature: 3-~-o\
Date ofCler~ignature: 3-"'1 -c:::. \
Reso. Log Updated:
Seal Impressed:
v
See Attached:
Date Returned:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
e
ed:
See Attached:
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):
Yes~
Yes
Yes
Yes
Yes
By
No ---L By
By
By
By
No
No-L
No ,/
No (
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
EDA
./'
Finance
MIS
Police Public Services
Water
Others:
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.l
Ready to File: ~
Date: ?'-I2.-l::)\