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HomeMy WebLinkAbout30- Personnel CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From:. BARBARA DILLON Subject: AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AMENDMENT Dept. PERSONNEL TO THE CONTRACT BETWEEN THE CITY OF SAN BERNARDINO AND THE BOARD OF Date: JUNE 3, 1996 D ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'RETIREMENT SYSTEM Synopsis of Previous Council Action: On September 6, 1995, 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. On May 20, 1996, the Mayor and Common Council adopted Resolution No. 96-119, 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. Recommended Motion: That further reading of the ordinance be waived and it be laid over for final adoption. Signature Contact person: Barbara Dillon Phone: 384-5161 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: 1-?0?01n inrreace in emnlnver rnntrihntinn rate fnr all lnral safety employees, effective July 1, 1997. Source: (Acct. No.) (Acct. Des lion) Finance: Council Notes: Agenda Item No. 3 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT BACKGROUND On May 20, 1996, the Mayor and Common Council adopted Resolution No. 96-119, 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. Article 15, Retirement Plan, of the Fire Safety employees' MOU states in paragraph 5, "The City will contract with PERS to additionally provide the Post-Survivors' Retirement Benefit, as of August 1, 1996, upon approval by the Mayor and Common Council and by PERS." Pursuant to PERS regulations, an ordinance of the City of San Bernardino and the Board of Administration of the California Public Employees' Retirement System must be presented to the Mayor and Common Council for approval. ANALYSIS The attached ordinance authorizes 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 fire safety members, with an extension of the funding period to the year 2011. 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 3.202% increase to the employer contribution rate for all local safety members. The employer contribution rate would reflect the increase effective July 1, 1997. The actual cost of this benefit may differ somewhat from the estimated cost as provided above, since current valuations are based on employees data and actuarial assumptions as of June 30, 1994. Future annual valuations will be based on new data and possible new assumptions. RECOMMENDATION Based on the foregoing, it is recommended that the ordinance be laid over for final adoption. AGENDA:SR.PERS.ORDINANCE dm 6/3/96 ORDINANCE NO. 1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN BERNARDINO 2 AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. 3 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO 5 ORDAIN AS FOLLOWS: 6 SECTION 1. The Mayor is hereby authorized and directed to approve an amendment to 7 the contract between the City of San Bernardino and the Board of Administration of the California g Public Employees' Retirement System. A copy of said amendment is attached hereto as Exhibit 9 "A" and by such reference made a part hereof as though herein set out in full. 10 SECTION 2. The authorization to execute the above-referenced amendment to Contract 11 is rescinded if the parties to the Contract fail to execute it within sixty (60) days of the passage 12 of this Ordinance. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DABJs[PERS.Ord] 1 May 30, 1996 AN ORDINANCE...AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN BERNARDINO AND THE BOARD OF 1 ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 3 Common Council of the City of San Bernardino at a meeting thereof, 4 held on the day of , 1996, by the following vote, to wit: 5 Council Members: AYES NAYS ABSTAIN ABSENT 6 NEGRETE 7 CURLIN 8 ARIAS 9 OBERHELMAN 10 DEVLIN 11 ANDERSON 12 MILLER 13 14 15 CITY CLERK 16 The foregoing Ordinance is hereby approved this day of , 1996 17 18 TOM MINOR, Mayor 19 City of San Bernardino 20 Approved as to form 21 and legal content: 22 JAMES F. PENMAN, City Attorney 23 24 �+ 25 By: 26 27 28 DAB Js[PERS.Ord] 2 May 30, 1996 t EXHIBIT A 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 and August 27, 1990, 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 August 27, 1990, 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); C. Employees other than local safety member, (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; PLEASE DO NOT SIGN "EXHIBIT 0 NLY" d. SENIOR LIFEGUARDS; e. SUPERVISING LIFEGUARDS; f. RECREATION INTERNS; g. RECREATION AIDES; h. RECREATION LEADERS; i. SENIOR RECREATION LEADERS; j. RECREATION SPECIALISTS; k. LOCKER ATTENDANTS; 1. 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 supersedes 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 21251.13 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)for local miscellaneous members and local fire members only. 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). g. Section 21573 (Third Level of 1959 Survivor Benefits) 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. Public Agency shall contribute $2.00 per member, 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. 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 PUBLI*PLOYEES' RETIREMENT SYSTEM OF THF,O/ itrzt% CITY 0174,N BERNARDINO BY � BY F DIVISION C Presiding O W ACTUARIAL PLOYER SERVICES DIVISION PUBLIC EMPLOYE ' RETIREMENT SYSTEM �� / Witness Date �y� � y O, Attest: l`. O,y AMENDMENT Clerk PER-CON-702A (Rev. 1/96)