HomeMy WebLinkAboutOrd. 1601-2020 (20-292)City of South San Francisco
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City Council
� Ordinance: ORD 1601-2020
File Number: 20-292
P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
Enactment Number: ORD 1601-2020
AN ORDINANCE APPROVING AN AMENDMENT TO THE
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY COUNCIL OF THE CITY OF SOUTH SAN
FRANCISCO
WHEREAS, the Public Employees' Retirement Law (California Government Code Section 20000 et
seq., the "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, the City of South San Francisco (the "City") and the Board of Administration California
Public Employees' Retirement System have entered into a contract effective September 1, 1945 (and
heretofore subsequently amended) related to the Public Employees' Retirement System ("Contract"); and
WHEREAS, the City has negotiated with its Executive Management Unit a Compensation Plan effective
July 1, 2017 through June 30, 2022, that includes a provision stating that with the implementation of the
PERS amendment and as authorized by GC 20516(f), Local Miscellaneous Classic Members and the
City agree to a pension -cost sharing arrangement where all Classic members shall pay, in addition to
their current 7% or 8% employee contribution, an additional one percent (I% ) effective the first full pay
period of July 2020 and an additional one percent (1%) for a total additional two percent (2%) effective
the first full pay period of July 2021; and
WHEREAS, the California Public Employees' Retirement System staff have prepared the attached
Amendment to Contract to implement the ability of Executive Management Unit Local Miscellaneous
member employees to share in the employer costs of their pension benefit.
NOW, THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows:
Section 1. RECITALS.
The City Council hereby finds that the foregoing Recitals are true and correct.
Section 2. APPROVAL OF AMENDMENT.
The City Council does hereby approve the Amendment to Contract between the Board of
Administration, California Public Employees' Retirement System and the City Council of the City of
South San Francisco
City of South San Francisco Page 1
File Number: 20-292
("Amendment") attached hereto and incorporated herein by this reference.
Section 3. AUTHORIZATION.
Enactment Number. ORD 1601-2020
The City Council hereby authorizes, empowers and directs the Mayor of the City to execute the
Amendment and any documents related thereto on behalf of the City.
Section 4. PUBLICATION AND EFFECTIVE DATE.
Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be
prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance
is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's
Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance,
the: City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of
the full text of this Ordinance along with the names of those City Council members voting for and
against this Ordinance or otherwise voting. This ordinance shall become effective thirty (30) days from
and after its adoption.
Section 5. SEVERABILITY.
In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such
section or portion shall be deemed severable and all other sections or portions hereof shall remain in full
force and effect.
Introduced at a regular meeting of the City Council of the City of South San Francisco held the 13th day
of May 2020.
At a meeting of the City Council on 6/10/2020, a motion was made by Vice Mayor Addiego, seconded by
Councilmember Nicolas, that this Ordinance be adopted. The motion passed.
Yes: 5 Mayor Garbarino, Vice Mayor Addiego, Councilmember Nagales, Councilmember
Nicolas, and Councilmember Matsumoto
Attest by Ve4�0 OtL
osa Govea Acosta, City Clerk
Richard Garba 'no, Mayor
City of South San Francisco Page 2
A%�-
Ca1PERS
EXHIBIT
California
Public Employees' Retirement System
-- .0�.
lill Ili Yal 0119hF1
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of South San Francisco
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
September 1, 1945, and witnessed September 12, 1945, and as amended effective
September 1, 1949, December 1, 1953, January 1, 1960, January 1, 1963, February 1,
1967, January 1, 1968, January 1, 1969, November 1, 1973, April 19, 1974, January 21,
1977, November 11, 1977, December 19, 1980, August 23, 1985, January 23, 1987,
December 22, 1989, January 1, 1992, October 9, 1993, April 23, 1994, June 13, 1996,
May 11, 2001, November 22, 2002, January 17, 2003, December 19, 2003, April 25,
2010, December 15, 2017 and October 19, 2018 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 18 are hereby stricken from said contract as executed
effective October 19, 2018, and hereby replaced by the following paragraphs
numbered 1 through 18 inclusive:
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 classic
local miscellaneous members entering membership on or prior to April 25,
2010, age 60 for classic local miscellaneous members entering
membership for the first time in the miscellaneous classification after April
25, 2010, age 62 for new local miscellaneous members, age 50 for classic
local safety members entering membership on or prior to April 25, 2010,
and age 55 for classic local safety members entering membership for the
first time in the safety classification after April 25, 2010, and age 57 for new
local safety members.
PLEASE DO NOT SIGN "EXHIBIT ON' Y"
2. Public Agency shall participate in the Public Employees' Retirement System
from and after September 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. Public Agency agrees to indemnify, defend and hold harmless the California
Public Employees' Retirement System (CaIPERS) and its trustees, agents
and employees, the CaIPERS Board of Administration, and the California
Public Employees' Retirement Fund from any claims, demands, actions,
losses, liabilities, damages, judgments, expenses and costs, including but
not limited to interest, penalties and attorney fees that may arise as a result
of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under the
Public Agency's prior non-CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' existing
retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party otherthan CaIPERS
to provide retirement benefits, provisions, or formulas that are
different than the retirement benefits, provisions or formulas
provided under this Contract and provided for under the California
Public Employees' Retirement Law.
4. 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).
PLEASE DO NOT SIGN "EXHIBIT ONY"
5. 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. PERSON WHO ARE COMPENSATED ON AN HOURLY BASIS
WHO ARE EMPLOYED JANUARY 1, 1963 OR AFTER
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
in employment before and not on or after December 19, 2003 shall be
determined in accordance with Section 21354 of said Retirement Law
subject to the reduction provided therein for Federal Social Security
(2% at age 55 Modified and Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
in employment on or after December 19, 2003 and not after April 25, 2010
shall be determined in accordance with Section 21354.5 of said Retirement
Law subject to the reduction provided therein for Federal Social Security
(2.7% at age 55 Modified and Full).
8. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member entering
membership for the first time in the miscellaneous classification after April
25, 2010 shall be determined in accordance with Section 21353 of said
Retirement Law subject to the reduction provided therein for Federal Social
Security (2% at age 60 Modified and Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said Retirement
Law (2% at age 62 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local safety member entering
membership in the safety classification on or prior to April 25, 2010 shall be
determined in accordance with Section 21362.2 of said Retirement Law (3%
at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited current service as a classic local safety member entering
membership for the first time in the safety classification after April 25, 2010
shall be determined in accordance with Section 21363.1 of said Retirement
Law (3% at age 55 Full).
FLEASE DG NOT SIGN "EXHIBIT ONLY"
12. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
13. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for local
miscellaneous members only.
b. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
C. Sections 21624 and 21626 (Post -Retirement Survivor Allowance).
d. Section 21024 (Military Service Credit as Public Service).
e. Section 20042 (One -Year Final Compensation). For those classic
local miscellaneous members and classic local safety members
entering membership on or prior to April 25, 2010.
Section 21573 (Third Level of 1959 Survivor Benefits) for local safety
members only.
g. Section 20965 (Credit for Unused Sick Leave).
h. Section 21548 (Pre -Retirement Option 2W Death Benefit) for local
fire members only.
Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 Modified and Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to classic local miscellaneous
members entering membership for the first time with this agency in
the miscellaneous classification after April 25, 2010 to contract; and
Section 21362.2 (3% @ 50 Full formula) and Section 20042 (One -
Year Final Compensation) are applicable to classic local safety
members entering membership with this agency on or prior to April
25, 2010; and
Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three -
Year Final Compensation) are applicable to classic local safety
members entering membership for the first time with this agency in
the safety classification after April 25, 2010
PLEASE DO NOT SIGN 64 1: ON'( Y„
Section 20516 (Employees Sharing Additional Cost):
From and after December 15, 2017 and until October 19, 2018, 1 %
for classic local fire members in the International Association of
Firefighters Local 1507,
From and after October 19, 2018, 2% for classic local fire members
in the International Association of Firefighters Local 1507.
From and after December 15, 2017 and until October 19, 2018, 1 %
for classic local police members in the South San Francisco Police
Association.
From and after October 19, 2018, 2% for classic local police
members in the South San Francisco Police Association.
From and after December 15, 2017 and until October 19, 2018, 1 %
for classic local fire members in the Public Safety Managers group.
From and after October 19, 2018, 2% for classic local fire safety
members in the Public Safety Managers group.
From and after December 15, 2017 and until October 19, 2018, 1%
for classic local police members in the Public Safety Managers
group.
From and after October 19, 2018, 2% for classic local police safety
members in the Public Safety Managers group.
From and after December 15, 2017 and until October 19, 2018, 1 %
for classic local fire members in the Executive Management Unit.
From and after October 19, 2018, 2% for classic local fire members
in the Executive Management Unit.
From and after December 15, 2017 and until October 19, 2018, 1 %
for classic local police members in the Executive Management Unit.
From and after October 19, 2018, 2% for classic local police
members in the Executive Management Unit.
From and after the effective date of this amendment to contract, 1 %
for classic local miscellaneous members in the Executive
Management Unit.
f �LE�;�E DG NOT SIG, "E;MUIT ON Yi►
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall not
exceed the Employer Normal Cost Rate, as that rate is defined in the
CaIPERS Actuarial Valuation for the relevant fiscal year. If the Cost
Sharing Percentage will exceed the relevant Employer Normal Cost
Rate, the Cost Sharing Percentage shall automatically be reduced to
an amount equal to, and not to exceed, the Employer Normal Cost
Rate for the relevant fiscal year.
14. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
November 11, 1977. 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.
15. 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
members of said Retirement System.
16. 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
safety 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.
17. 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.
18. 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 ,
�-<7-
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPOYEES' RETIREMENT SYSTEM CITY OF SOUTH SAN FRANCISCO
BY _
ARNITA PAIGE, CI-ftEF
PENSION CONTRAGSTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' 6REMENT SYSTEM
r
AMENDMENT CaIPERS ID #7147827092
PERS-CON-702A
BYj�
PRESIDII G\OFFICER
G�
Witness Date
Attest:
Clerk
s