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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Date: July 8, 2008
/
Subject: A RESOLUTION OF
INTENTION AND ORDINANCE
AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE
PUBLIC EMPLOYEES' RETIREMENT
SYSTEM (PERS) AND THE CITY OF
SAN BERNARDINO TO PROVIDE A
3% @ 50 RETIREMENT BENEFIT FOR
SAFETY EMPLOYEES.
MICC Meeting Date: July 21, 2008
From: LINN LIVINGSTON, DIRECTOR
OF HUMAN RESOURCES
Dept: HUMAN RESOURCES
Synopsis of Previous Council Action:
On May 7, 2001, the Mayor and Common Council approved an ordinance authorizing
an amendment to the contract between the Mayor and Common Council of the City of
San Bernardino and the Board of Administration of the Public Employees' Retirement
System (3% @ 55 Benefit) and repealing Ordinance No. MC-1096.
Recommended Motion:
1. Adopt Resolution of Intention.
2. Waive further reading and layover said Ordinance for final adoption on September
15, 2008. A'~/ . ~.-I,.. ')
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Contact person: Linn Livinqston
Phone:
384-5161
Supporting data attached:
Ward:
FUNDING REQUIREMENTS: Amount:
$2,101,600 Annuallv
Source: (Acct. No.)
(Acct. Description)
Council Notes:
Finance:
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Agenda Item No. 2- L-
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subiect:
A Resolution of Intention and Ordinance authorizing an amendment to the contract between the
Public Employees' Retirement System (PERS) and the City of San Bernardino to provide a 3%
@ 50 retirement benefit for safety employees.
Backl!:round:
During the negotiations process with the Police and Fire Safety bargaining groups, the Mayor
and Common Council agreed to amend the current retirement formula for employees in the
safety bargaining groups to a 3% @ 50 formula.
The agreement requires the City to amend their PERS contract to provide Section 21362.2 (3%
@ 50 full formula) for safety members, effective 111109. The anticipated employer rate is
5.058% based on the June 30, 2006 PERS valuation. The City has requested and was awarded a
30 year fresh start reducing the employers rate to 4.349% with an annual cost to the City for this
benefit of $1,346,700 for Police and $754,900 for Fire (total of $2,101,600), based on the PERS
valuation.
Pursuant to PERS' regulations, the Mayor and Common Council must approve the Resolution of
Intention, and an Ordinance approving an amendment.
The attached Ordinance and Resolution authorizes an amendment of the City contract with PERS
(Exhibit A) to provide the 3% @ 50 benefit for all safety members.
Financial Impact:
The projected cost to amend the City's PERS contract to provide a 3% @ 50 retirement benefit
for safety members was previously provided and approved with the adoption of each safety
group's MOD. The Police MOD was adopted on August 21, 2006; the Fire MOD was adopted
on March 6, 2006.
The 2008-09 FY cost is $1,050,800 (January 1,2009 through June 30, 2009) which is included in
the FY 2008-09 budget.
The estimated on-going annual cost for the 3% @ 50 benefit is $2,101,600 using a 30-year fresh
start for the amendment amortization base.
Recommendation:
I Adopt Resolution ofIntention.
2 Waive further reading and layover said Ordinance for final adoption on September 15,2008.
2
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
(888) CalPERS (225-7377)
SUMMARY OF MAJOR PROVISIONS
3% @ 50 Formula (Section 21362.2)
Local Safety Members
SERVICE RETIREMENT
To be eligible for service retirement, a member must be at least age 50 and have five years of
CalPERS credited service. If provided by the employer's contract, mandatory retirement age for
local safety members is age 60.
The monthly retirement allowance is determined by age at retirement, years of service credit and
final compensation. The basic benefit is 3% of final compensation for each year of credited
service upon retirement at age 50. The allowance is limited to 90% of final compensation.
Final compensation is the average monthly pay rate during the last consecutive 36 months of
employment, or 12 months if provided by the employer's contract, unless the member designates a
different period of 36 or 12 consecutive months when the average pay rate was higher. Certain
items of special compensation earned during your final compensation period will be included in
your final compensation, in accordance with Board regulations.
DISABILITY RETIREMENT
Members substantially incapacitated from performing the usual duties for the position for his/her
current employer would be eligible for disability retirement provided they have at least five years of
service credit. The monthly retirement allowance is 1.8% of final compensation for each year of
service. The maximum percentage for members who have between 10.000 and 18.518 years of
service credit is one-third of their final compensation. If the member is eligible for service
retirement the member will receive the highest allowance payable, service or disability. If provided
by the employer's contract, the benefit would be a minimum of 30% of final compensation for the
first five years of service credit, plus 1 % for each additional year of service to a maximum benefit
of 50% of final compensation.
INDUSTRIAL DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties, as defined above under
Disability Retirement, and the disability is a result of a job-related injury or illness may receive an
Industrial Disability Retirement benefit equal to 50% of their final compensation. If provided in the
employer's contract and the member is totally disabled, the disability retirement allowance would
equal 75% of final compensation in lieu of the disability retirement allowance otherwise provided.
If the member is eligible for service retirement, the service retirement allowance is payable. The
total allowance cannot exceed 90% of final compensation.
PRE-RETIREMENT DEATH BENEFITS
Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up to
six months' pay (one month's salary rate for each year of current service to a maximum of six
months).
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1957 Survivor Benefit: An eligible beneficiary may elect to receive either the Basic Death Benefit or
the 1957 Survivor Benefit. The 1957 Survivor Benefit provides a monthly allowance equal to one-
half of the highest service retirement allowance the member would have received had he/she
retired on the date of death. The 1957 Survivor Benefit is payable to the surviving spouse or
registered domestic partner until death or to eligible unmarried children until age 18.
1959 Survivor Benefit: (If provided by the employer's contract and the member is not covered
under social security.) A surviving spouse or registered domestic partner and eligible children may
receive a monthly allowance as determine by the level of coverage. This benefit is payable in
addition to the Basic Death Benefit or 1957 Survivor Benefit. Children are eligible if under age 22
and unmarried.
Pre-Retirement Option 2W Death Benefit: (If provided by the employer's contract.) The spouse or
registered domestic partner of a deceased member, who was eligible to retire for service at the
time of death, may to elect to receive the Pre-Retirement Option 2W Death Benefit in lieu of the
lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the
member would have received if he/she had retired for service on the date of death and elected
Option 2W, the highest monthly allowance a member can leave a spouse or registered domestic
partner.
Special Death Benefit: A surviving spouse, registered domestic partner, or eligible children or step
children may receive a monthly allowance equal to one-half of the final compensation. If the cause
of death is due to external violence or physical force while on the job, and there are eligible
surviving children in addition to a spouse or registered domestic partner, the allowance may be
increased to a maximum of 75%.
COST-OF-L1VING ADJUSTMENTS
The cost of living allowance increases are limited to a maximum of 2% compounded annually
unless the employer's contract provides a 3, 4, or 5% increase.
DEATH AFTER RETIREMENT
The lump sum death benefit is $500 (or $600, $2,000, $3,000, $4,000 or $5,000 if provided by the
employer's contract) regardless of the retirement plan chosen by the member at the time of
retirement.
TERMINATION OF EMPLOYMENT
Members who have separated from employment may elect to leave their contributions on deposit
or request a refund of contributions and interest. Those who leave their contributions on deposit
may apply at a later date for a monthly retirement allowance if the minimum service and age
requirements are met. Members who request a refund of their contributions terminate their
membership and are not eligible for any future benefits unless they return to CalPERS
membership.
EMPLOYEE CONTRIBUTIONS
Local safety members covered by the 3% @ 50 formula contribute 9% of reportable earnings.
Those covered under a modified formula (coordinated with Social Security) do not contribute on
the first $133.33 earned.
The employer also contributes toward the cost of the benefits. The amount contributed by the
employer for current service retirement benefits generally exceeds the cost to the employee. In
addition, the employer bears the entire cost of prior service benefits (the period of time before the
employer provided retirement coverage under CaIPERS). All employer contribution rates are
subject to adjustment by the CalPERS Board of Administration.
;CALlFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Contract Maintenance Unit
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377) FAX (916) 795-3005
SCHEDULE OF AGENCY ACTIONS
FOR PLANNING YOUR AMENDMENT TO CONTRACT
CalPERS will prepare the documents necessary to amend your contract and
provide them to you within 30 days of receipt of the Contract Amendment Request
in our office. The contracting agency must have a current Amendment Cost
Analysis before proceeding with an amendment to the contract.
1. 7/14/08 ENTER A DATE THAT IS 30 DAYS FROM THE DATE YOU EXPECT CalPERS TO
RECEIVE THE CONTRACT AMENDMENT REQUEST FORM YOU SUBMITTED
OR WILL BE SUBMITTING. This is the date you may expect to receive the
documents from CalPERS that you will need to amend the Contract.
2. 7/21/08 ENTER THE DATE THE GOVERNING BODY WILL ADOPT THE RESOLUTION
OF INTENTION DOCUMENT. Allow the necessary time after the date you expect to
receive the needed documents from CalPERS (#1 above) to include adoption of the
Resolution of Intention on the Governing Body's meeting agenda. The first reading
of the Ordinance may be held on the same day the Resolution of Intention is
adopted.
3. N/A ENTER THE DATE THE EMPLOYEE ELECTION WILL BE HELD. An employee
election is required only if the employee contribution rate will change. If required,
this election must follow the Governing Body's adoption of the Resolution of
Intention (#2 above) and must be prior to the Adoption of the Ordinance (#4 below).
4. 9/15/08 ENTER THE DATE THE GOVERNING BODY WILL ADOPT THE ORDINANCE.
This date must be at least 20 davs after the date the Governing Body adopts the
Resolution of Intention (#2 above).
5. 10/20/08 ENTER THE EFFECTIVE DATE OF THE ORDINANCE. This date is usually 30
days after the date the Governing Body adopts the final ordinance (#4 above) unless
an Urgency Ordinance is adopted which establishes an earlier Ordinance effective
date.
6. 1/1/09 ENTER THE EFFECTIVE DATE OF THE AMENDMENT TO CONTRACT. If there
is no change in the employee or the employer contribution rates this date may be as
early as the day after the effective date of the Ordinance (#5 above). If there is a
change in the employee and/or the employer contribution rates, this date must be
the first day of a payroll period and may not be earlier than the day after the effective
date of the Ordinance (date #5).
THIS FORM IS USED FOR PROPERLY PLANNING AND SCHEDULING THE AGENCY ACTIONS TO
AMEND THE CONTRACT WITH CaIPERS. CAREFULLY FOLLOWING THE GUIDELINES IN THIS FORM
CAN PREVENT THE NEED TO RESCIND ACTIONS TAKEN BY YOUR GOVERNING BODY AND
REPEATING THE PROCESS AS WELL AS AVOIDING UNNECESSARY DELAYS IN THE AMENDMENT
EFFECTIVE DATE. THIS FORM SHOULD BE COMPLETED AND A COPY RETURNED TO THIS OFFICE
WITH THE CONTRACT AMENDMENT REQUEST. PLEASE CALL YOUR CONTRACT ANALYST AT
(888) 225-7377 IF YOU HAVE QUESTIONS.
Cities and Counties Schedule of Agency Actions
(Elf. 4/12/04)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
(888) CalPERS (225-7377)
SUMMARY OF MAJOR PROVISIONS
3% @50 Formula (Section 21362.2)
Local Safety Members
SERVICE RETIREMENT
To be eligible for service retirement, a member must be at least age 50 and have five years of
CalPERS credited service. If provided by the employer's contract, mandatory retirement age for
local safety members is age 60.
The monthly retirement allowance is determined by age at retirement, years of service credit and
final compensation. The basic benefit is 3% of final compensation for each year of credited
service upon retirement at age 50. The allowance is limited to 90% of final compensation.
Final compensation is the average monthly pay rate during the last consecutive 36 months of
employment, or 12 months if provided by the employer's contract, unless the member designates a
different period of 36 or 12 consecutive months when the average pay rate was higher. Certain
items of special compensation earned during your final compensation period will be included in
your final compensation, in accordance with Board regulations.
DISABILITY RETIREMENT
Members substantially incapacitated from performing the usual duties for the position for his/her
current employer would be eligible for disability retirement provided they have at least five years of
service credit. The monthly retirement allowance is 1.8% of final compensation for each year of
service. The maximum percentage for members who have between 10.000 and 18.518 years of
service credit is one-third of their final compensation. If the member is eligible for service
retirement the member will receive the highest allowance payable, service or disability. If provided
by the employer's contract, the benefit would be a minimum of 30% of final compensation for the
first five years of service credit, plus 1 % for each additional year of service to a maximum benefit
of 50% of final compensation.
INDUSTRIAL DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties, as defined above under
Disability Retirement, and the disability is a result of a job-related injury or illness may receive an
Industrial Disability Retirement benefit equal to 50% of their final compensation. If provided in the
employer's contract and the member is totally disabled, the disability retirement allowance would
equal 75% of final compensation in lieu of the disability retirement allowance otherwise provided.
If the member is eligible for service retirement, the service retirement allowance is payable. The
total allowance cannot exceed 90% of final compensation.
PRE-RETIREMENT DEATH BENEFITS
Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up to
six months' pay (one month's salary rate for each year of current service to a maximum of six
months).
1957 Survivor Benefit: An eligible beneficiary may elect to receive either the Basic Death Benefit or
the 1957 Survivor Benefit. The 1957 Survivor Benefit provides a monthly allowance equal to one-
half of the highest service retirement allowance the member would have received had he/she
retired on the date of death. The 1957 Survivor Benefit is payable to the surviving spouse or
registered domestic partner until death or to eligible unmarried children until age 18.
1959 Survivor Benefit: (If provided by the employer's contract and the member is not covered
under social security.) A surviving spouse or registered domestic partner and eligible children may
receive a monthly allowance as determine by the level of coverage. This benefit is payable in
addition to the Basic Death Benefit or 1957 Survivor Benefit. Children are eligible if under age 22
and unmarried.
Pre-Retirement Option 2W Death Benefit: (If provided by the employer's contract.) The spouse or
registered domestic partner of a deceased member, who was eligible to retire for service at the
time of death, may to elect to receive the Pre-Retirement Option 2W Death Benefit in lieu of the
lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the
member would have received if he/she had retired for service on the date of death and elected
Option 2W, the highest monthly allowance a member can leave a spouse or registered domestic
partner.
Special Death Benefit: A surviving spouse, registered domestic partner, or eligible children or step
children may receive a monthly allowance equal to one-half of the final compensation. If the cause
of death is due to external violence or physical force while on the job, and there are eligible
surviving children in addition to a spouse or registered domestic partner, the allowance may be
increased to a maximum of 75%.
COST-OF-L1VING ADJUSTMENTS
The cost of living allowance increases are limited to a maximum of 2% compounded annually
unless the employer's contract provides a 3, 4, or 5% increase.
DEATH AFTER RETIREMENT
The lump sum death benefit is $500 (or $600, $2,000, $3,000, $4,000 or $5,000 if provided by the
employer's contract) regardless of the retirement plan chosen by the member at the time of
retirement.
TERMINATION OF EMPLOYMENT
Members who have separated from employment may elect to leave their contributions on deposit
or request a refund of contributions and interest. Those who leave their contributions on deposit
may apply at a later date for a monthly retirement allowance if the minimum service and age
requirements are met. Members who request a refund of their contributions terrninate their
membership and are not eligible for any future benefits unless they return to CalPERS
membership.
EMPLOYEE CONTRIBUTIONS
Local safety members covered by the 3% @ 50 formula contribute 9% of reportable earnings.
Those covered under a modified formula (coordinated with Social Security) do not contribute on
the first $133.33 earned.
The employer also contributes toward the cost of the benefits. The amount contributed by the
employer for current service retirement benefits generally exceeds the cost to the employee. In
addition, the employer bears the entire cost of prior service benefits (the period of time before the
employer provided retirement coverage under CaIPERS). All employer contribution rates are
subject to adjustment by the CalPERS Board of Administration.
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CalPERS
Actuarial & Employer Services Branch
P.O. Box 942709
Sacramento, CA 94229-2709
Telecommunications Device for the Deaf - (916) 795-3240
(888) CalPERS (225-7377) FAX (916) 795-3005
October 1, 2008
Employer Code #0061
Reply to Section 125
Ms. Linn Livingston
Director of Human Resources
City of San Bernardino
300 North "0" Street 2nd Floor
San Bernardino, CA 92418
Dear Ms. Livingston:
The contract amendment has been executed by CaIPERS. The effective date of the
contract amendment is January 1, 2009.
If you have any questions regarding your contract, please do not hesitate to contact our
office at (888) CalPERS (225-7377).
Sincerely,
'1?lO/)JPt~ {!amatJh~
Public Agency Contract Services
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Enclosure
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California Public Employees' Retirement System
www.calpers.ca.gov
OFFICE OF THE CITY CLERK
RACHEL G. CLARK - CITY CLERK
300 North "D" Street. San Bernardino. CA 92418-0001
909.384.5002. Fax: 909.384.5158
www.sbcity.org
,"
September 18, 2008
Mr. Michael Latino
.Employer Representative
CalPERS
Public Agency Contract Services
Employer Services Division
P.O. Box 942709
Sacramento, CA 94229-2709
Dear Mr. Latino:
In response to your letter dated September 11, 2008, to Ms. Linn Livingston, Director of
Human Resources, the following documents are enclosed relative to the amendment of the
City's CalPERS contract to provide Section 21362.2 (3% @ 50 Full formula) for local safety
members:
1. Amendment to Contract, two original executed sets.
2. Certified copy of Ordinance No. M C-1285.
3. Original executed copy of Certification of Final Action of Governing Body.
As referenced in the ordinance, the Amendments to Contract are designated as Exhibit" A."
After obtaining the signature of Lori McGartland, Chief of the Employer Services Division, on
the original Amendments to Contract, please return one fully executed original to my office for
placement with our original ordinance.
If you have any questions, please call me.
Sincerely,
~~h.~
RACHEL G. CLARK
City Clerk.
Enclosures
cc: Linn Livingston, Director of Human Resources
CITY OF SAN BERNARDINO
ADOPTED SHARED VALUES: Integrity. Accountability. Respect for Human Dignity. Honesty
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
I hereby certify that the
Mayor and Common Council
(governing body)
of the
City of San Bernardino
(public agency)
adopted on September 15 2008 , by an affirmative vote of a majority
(date)
of the members of said Governing Body, Ordinance
(Ordinance or Resolution)
No. MC-1285 approving the 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 Ordinance
(Ordinance or Resolution)
in the form furnished by said Board of Administration being attached hereto.
a~h.~
Clel'k/Secretary
C/ry CL(~If:I<
Title
Date ~/P.<()oR
PERS-CON-5 (Rev. 1/96)
..
CalPERS
Employer Services Division
P.O. Box 942709
Sacramento, CA 94229-2709
Telecommunications Device for the Deaf - (916) 795-3240 nee;::: i '! E D
888 CalPERS (or 888-225-7377) FAX (916) 795-3005
ZODa SEP /5 AM 10: 49
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September 11 , 2008
Employer Code #0061
Reply to Section 105
Ms. Linn Livingston
Director of Human Resources
City of San Bernardino
300 North "0" Street 2nd Floor
San Bernardino, CA 92418
Dear Ms. Livingston:
We have received the Resolution of Intention to amend your CalPERS contract to
provide Section 21362.2 (3% @ 50 Full formula) for local safety members.
Enclosed are the following documents necessary to complete the proposed
amendment:
1. Amendment to Contract.
2. Certification of Final Action of Governing Body (Form CON-5).
Your agency adopted the Resolution of Intention on July 21, 2008, therefore, the
earliest date the final Ordinance could have been adopted was August 10, 2008,
pursuant to Government Code Section 20471. THERE ARE NO EXCEPTIONS TO
THIS LAW.
The effective date of this amendment cannot be earlier than the first day of a payroll
period following the effective date of the Ordinance. Please insert the effective date on
the last page of the Amendment to Contract.
The following documents must be returned to this office. ORIGINAL SIGNATURES
ARE REQUIRED ON ALL DOCUMENTS.
1. Amendment to Contract, two original executed sets.
2. Ordinance, original or certified copy.
3. Certification of Final Action of Governing Body (CON-5), original.
California Public Employees' Retirement System
www.calpers.ca.gov
City of San Bernardino
-2-
September 11 , 2008
Please notify your personnel/payroll staff and any others who submit payroll or
membership documents to CalPERS on behalf of the agency, such as county courts
and port districts, of the following information as of the effective date of the amendment
to the contract:
. The employer contribution rate on the contract amendment effective date will be
24.009% of reportable earnings for local safety members.
Please do not retype the Amendment to Contract and/or agreement documents.
Only documents provided by this office will be accepted. If you have a problem
with any of the documents, please contact this office prior to presenting to your
governing body for adoption. Another contract amendment cannot be started
until this amendment is completed or cancelled.
A copy of the contract will be returned for your records after it has been executed by
CaIPERS.
If you have any questions, please call (888) CalPERS (225-7377).
~
el Latino
Employ epresen
Public Agency Contract Services
ML:rc
Enclosures
cc: San Bernardino Regional Office
Ordinance No
2
3
4
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CIT
OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO THE CONTRAC
BETWEEN THE MAYOR AND COMMON COUNCIL OF THE CITY OF S
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALI FORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
5
6
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDIN
DO ORDAIN AS FOLLOWS:
7
SECTION I. That an amendment to the contract between the Mayor and Commo
8
9
Council of the City of San Bernardino and the Board of Administration of the California Publi
10
Employees' Retirement System is hereby authorized, a copy of said amendment being attache
11
hereto, marked Exhibit "A" and by such reference made a part hereof as though herein set out i
12
full.
13
SECTION 2. The Mayor of the City of San Bernardino is hereby authorized, empowere
14
and directed to execute said amendment for and on behalf of said Agency.
IS
SECTION 3. This Ordinance shall take affect thirty (30) days after the date of it
16
adoption, and within 15 days from the passage thereof, shall be published at least once in the S
17
Bernardino County Sun, a newspaper of general circulation, published and circulated in the Cit
18
of San Bernardino and thenceforth and thereafter the same shall be in full force and effect.
19
/II
20
/II
21
22
1/1
23
/II
24
III
25
III
-1-
2
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CIT
OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO THE CONTRAC
BETWEEN THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALI FORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
3
4
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor an
5
the Common Council of the City of San Bernardino at a
meeting thereof, hel
6
, 2008, by the following vote, to wit:
on
day of
7
8
AYES
NA YES
ABSTAIN ABSENT
COUNCILMEMBERS:
ESTRADA
BAXTER
BRINKER
DERRY
KELLEY
JOHNSON
MCCAMMACK
9
10
11
12
13
14
15
16
Rachel G. Clark, City Clerk
17
18
The foregoing resolution IS hereby approved this
day 0
19
,2008.
20
21
Patrick J. Morris, Mayor
City of San Bernardino
22
Approved as to form:
23
JAMES F. PENMAN,
City Attorney
24
25
H
enda Items:Ordinance.3%@50.2008
-2-
EXHIBIT "A"
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,
November 1, 1999, June 1, 2001, July 1, 2001 and January 1, 2008 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree
as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective January 1, 2008, 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 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 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 ternporary 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.
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6. 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 January 1, 2008 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 miscellaneous member in
employment on or after January 1, 2008 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
Full).
8. 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 21362.2 of said Retirement Law
(3% at age 50 Full). Effective January 1, 2009.
9. 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 (One-Time 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).
e. Section 21222.2 (One-Time 5% Increase - 1971). Legislation
repealed said Section effective January 1, 1980.
f. Section 21319 (One-Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971). Legislation
repealed said Section effective January 1, 2002.
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members and local fire 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.
.;
10. 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.
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 and local safety 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 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.
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 beeffecll~e on the 1 day of January
, 2009 .
';"''...-' ,
BOARD OF ADMINI~l'RATi6N CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SAN BERNARDINO
BY
LORI MCGARTLAND, CHIEF
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
APPROVED AS TO FORM:
James F. Penman,
City Attorney
Bcr-F~
AMENDMENT ER# 0061
PERS-CON-702A (Rev. 10105)
BY
PRESIDING OFFICER
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Clerk
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
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 Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
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 for 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 I Ordinance.
Clerk/Secretary
Title
Date
PERS-CON-12A (rev. 1/96)