HomeMy WebLinkAbout14-Human Resources
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.' . CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
From:
C
EDWARD S. RAYA
Subject:
AN ORDINANCE AND RESOLUTION
AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE BOARD
d OF ADMINISTRATION OF THE PUBLIC
EMPLOYEES RETIREMENT SYSTEM
AND THE CITY OF SAN BERNARDINO FOR
ADDING THE 2% @55 RETIREMENT
BENEFIT
Dept:
HUMAN RESOURCES
.
,..m
C'~ L.- w
Date:
OCTOBER 16,2000
Synopsis of Previous Council Action:
)n December 20, 1999, the Mayor and Common Council approved the Memorandum of Understandin!
letween the City of San Bernardino and employees in the General Unit and the Mid-Management Unit.
)n January 25, 2000, the Mayor and Common Council approved Resolution 2000-13 establishin!
iIIanagement and Confidential Compensation and B~nefits.
Cnmended Motion:
1. Adopt Resolution
2. That said Ordinance be laid over for final adoption.
~~i~~~~
lupporting Data Attached:
Edward S. Rava
Yes
Phone:
384-5161
~ontact Person:
Ward:
:UNDING REQUIREMENTS:
Amount:
Source: (Accl No)
(Acct Descri~ ::
Finance: . -;;:vt; c:u c^-(/jt~{ ~
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~uncil Notes: 1J/\.I/1J.-1~AL7~ ItJ//6kt'J :i:t:;;2.7
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Agenda Item No_ / I-
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} CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
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STAFF REPORT
SUBJECT
Amend the PERS contract to provide the Section 21354 (2% @ 55 Full formula) for
local miscellaneous members.
BACKGROUND
The Mayor and Common Council previously approved the Memorandums of
Understanding between the City of San Bernardino and employees in the General and
Mid-Management bargaining units of the City of San Bernardino, and Resolution 2000-
13 establishing Compensation and Benefits for Management and Confidential
employees.
These agreements contained provisions which require the City to amend the PERS
contract to provide the Section 21354 (2% @ 55 Full formula) for local miscellaneous
members, effective 6/01/01. The cost for this benefit is $15,637,602, according to the
PERS valuation. When the contract is amended, the City will receive the one time
methodology change and with this change PERS estimates that the City's employer rate
will still remain zero for approximately 71 years. It is anticipated that although the City's
Miscellaneous PERS account will still be over-funded after the contract amendment, it
will not be super over-funded.
Pursuant to PERS' regulations, the Mayor and Common Council must approve the
Resolution of Intention and an Ordinance approving an amendment to the PERS
contract prior to the implementation date of 6-01-01.
The attached Ordinance and Resolution authorizes an amendment of our contract with
the Public Employees' Retirement System (Exhibit A) to provide the 2% @ 55 benefit for
all local miscellaneous members.
FINANCIAL IMPACT
1. Changes in the Present Value of Benefits
2. Changes in the Unfunded Accrued Liability
3. Changes in the employer rate
$15,637,602
$ (1,643,926)
0.000%
As indicated above there will be no impact on the City's employer rate because the
City's surplus PERS funds will be used to fund this benefit.
RECOMMENDATION
1.
Adopt Resolution
2. That said Ordinance be laid over for final adoption.
Attachment: Ordinance
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AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN
BERNARDINO.
I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the
Mayor and Common Council of the City of San Bemardino at a
meeting thereof, held on the day of 2000, by the following vote
to wit:
COUNCILMEMBERS
ESTRADA
LIEN
MC GINNIS
SCHNETZ
AYES
ABSENT ABSTAIN
NAYS
14
!I SUAREZ
15 i
16
17
18
19
20
21
22
23
24
25
26
C 27
28
ANDERSON
McCAMMACK
Rachel Clark, City Clerk
The foregoing ordinance is hereby approved this
day of
2000.
Judith Valles, Mayor
Approved as to
Form and legal content:
JAMES F. PENMAN
City Attorney
By:
.~
A
CalPERS
EXHIBIT
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of San Bernardino
.
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 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, July 3,1997, January 1, 1998, August 1,
1998 and November 1, 1999 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
November 1, 1999, 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 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);
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 OR 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. RECREA nON 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
CalPERS membership by contract. Government Code Section 20336 superseded
this contract provision by providing that any such temporary and/or seasonal
employees are excluded from CalPERS 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 21354 of said Retirement Law (2% at age 55 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).
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 who
retired or Died Prior to July 1, 1997).
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members
and local miscellaneous members only.
h. Section 20903 (Two Years Additional Service Credit) for local miscellaneous
members only.
i. 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.
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. Contributions required per covered member on account of the 1959 Survivor
Benefits provided under Section 21574 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 and 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 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
,19_,
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SAN BERNARDINO
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)
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)
.'
OFFICE OF THE CITY CLERK
RACHEL G. CLARK, CM.C. . CITY CLERK
'M
P.O. Box 1318 . San Bernardino. CA 92402
300 North "D" Street. San Bernardino. CA92418..()()()1
909,384.5002. Fax: 909.384.5158
Business Registration Division: 909.384.5302
Passport Acceptance Facility: 909.384.5128
www.cLsan-bernardino.ca.us
November 9,2000
Mr. Kenneth W. Marzion
Actuarial & Employer Services Division
Public Employees' Retirement System
P.O. Box 942709
Sacramento, CA 94229
Re: 2 % @ 55 Full formula for local miscellaneous members
Dear Mr. Marzion:
Enclosed are the following documents for your use and records:
· A certified copy of Resolution No. 2000-314 - Resolution of intention to approve an
amendment to contract between the Board of Administration California Public
Employees' Retirement System and the City Council City of San Bernardino, which
includes Exhibit "A" - a fully executed original of the Amendment to Contract
Between the Board of Administration California Public Employees' Retirement
System and the City Council City of San Bernardino, and
· A certified copy of Ordinance No. MC-1089 - An ordinance of the City of San
Bernardino authorizing an amendment to the contract between the Board of
Administration of the Public Employee' Retirement System and the City of San
Bernardino.
If you have any questions, please do not hesitate to contact our office at (909)384-5102.
Sincerely,
:4 "
..... /Ifi LIe
L t:'~.J..-L{ /.). '-Z..4,., l...
Rachel G. Clark, CMC
City Clerk
Enclosures
CITY OF SAN BERNARDINO
ADOPTED SHARED VALUES: Integrity. Accountability. Respect for Human Dignity. Honesty
'.
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; * * 'FOR OFFICE USE OHL Y . HOT"A PUBLIC DOCUMENT**""'"
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" RECORDS & INFORMATION MANAGEMENT PROGRAM
Vote:
AGENDA ITEM TRACKING FORM
Item No. I c(
Ordinance Urgency: Yes I N~ )
Termination/Sunset Date: ~o
Nays: -e-
Absent: ()
/1 -t, -() rJ
Meeting Date/Date Adopted:
Resolution/Ordinance No. /11 c - / tJ Y9
Effective Date: j;).,- 7 - 0 0
Ayes: I 2-1-~ j to "7
I / '
Abstain: .
11-1-00
Date of Mayor's Signature: 11- 7- tltJ
Date Summary Sent to Anorney: 11- 7- tJ tJ
Date Published: f:!} - 0 0
Meeting Type:--..J)_ ~
Continued Fro-;;;r;;& Item No.
Date Sent to Mayor:
Date Returned from Mayor: ((- 7 - 0 t7
Date of Clerk's Signature: /1- f?-tJtJ
Date Summary Returned from Anorney:
ll-'i?-oo
Date Seal Impressed:
(I- ?r-oO
Date Sent for Signature:
Expiration Date:
Copies Distributed To:
ii To~
e;;- ,~4;"~
I
lI.fR.
/
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Exhibits Complete & Anached to Resolution/Ordinance:
Reminder lener Sent:
Reminder lener Sent:
Reminder lener Sent:
Request for Council Action & Staff Report Anached:
Notes: If~.,/;~ /d.--
Yes
No
Ready to File:
Date:
IXXUMENT lOCAT1ON:
fOD6',..... .... TIaddaI Fonft..cc Foan No. 111 .LM UpdIIed: 1210411996