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HomeMy WebLinkAboutOrd. 1425-2010ORDINANCE NO. 1425-2010 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA 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 L~iw (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 tlae 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 subsequentl~~ amended) related to the Public Employees' Retirement System ("Contract"); and WHEREAS, the City has negotiated with all of its. bargaining units asecond-tier of retirement benefits under the City's retirement system pursuant to Government Code Section 20475 as follows: (A) Government Code Section 21354.5 (:2.7% at 55 Modified and Full formula and Government Code Section 20042 (One-Year Final Compensation) is applicable to local miscellaneous members entering membership on or prior to the effective date of the amendment to the Contract, (B) Government Code Section 21353 (2% at 60 Modified and Full formula and Government Code Section 20037 (Three-Year Final Compensation) is applicable to local miscellaneous members entering membership for the- first time and in miscellaneous classification after the effective date of the amendment to tJae Contract, (C') Government Code Section 21362.2 (3% at 50 Full formula) and Government G~de Section 20042 (One-Year Final Compensation) is applicable to local safety members entering membership on or prior to the effective date of the amendment to the Contract, and (D) Government Code Section 21363.1 (3% at 55 Full formula) and Government Code Section 20037 ('Three-Year Final Compensation) is applicable to local safety members entering membership for the first time in safety classification after the effective date of the amendment to the Contract; and WHEREAS, the California Public Employees' Retirement System staff have prepared the attached Amendment to Contract to implement this sec©nd--tier retirement 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 Amerdment to Contract between the Board of Administration, California Public Employees' Retirement System and the City Council of the City of South San Francisco ("Amendment") attached hereto and incorporated herein by this reference. Section 3. AUTHORIZATION. The City Council hereby authorizes, empowers acid directs the Mayor of the City to execute the Amendment and any documents related thereto on behalf of the City. Section 4. PUBLICATION AND EFFECTI~IE 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 certiiie~d 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 10th day of March, 2010. Adopted as an Ordinance of the City of South F~anc;isco at a regular meeting of the City Council held the 24th day of March, 2010 by the following vote: AYES: Councilmembers Pedro Gonzalez, Richard A. Garbarino, and Karyl Matsumoto, Vice Mayor Kevin Mullin and Mayor Mark Addie,go NOES: None ABSTAIN: None ABSENT: None ATTEST: As Mayor of the City of South San Francis; Ordinance this 24th day of March, 2010. "I~do hereby approve the foregoing ~ ~~-. CaIPERS California Public Employees' Retir ~° lent System AMENDMENT TO CONTRACT Between t Board of Admini tratiort California Public Employee Retirement System and the City Coun it City of South San Francisco The Board of Administration, California Public Empl referred to as Board, and the governing body of referred to as Public Agency, having entered into a and witnessed September 12, 1945, and as arr December 1, 1953, January 1, 1960, January 1, 191 January 1, 1969, November 1, 1973, April 19, 19 1977, December 19, 1980, August 23, 1985, Jar January 1, 1992, October 9, 1993, April 23, 1 ~ November 22, 2002, January 17, 2003 and De• participation of Public Agency in said System, Boai follows: oyees' Retirement System, hereinafter the above public agency, hereinafter contract effective September 1, 1945, ended effective September 1, 1949, i3, February 1, 1967, January 1, 1968, 74, January 21, 1977, November 11, wary 23, 1987, December 22, 1989, X94, June 13, 1996, May 11, 2001, ;ember 19, 2003 which provides for 'd and Public Agency hereby agree as A. Paragraphs 1 through 13 are hereby stri ken from said contract as executed effective December 19, 2003, and hereby replaced by the following paragraphs numbered 1 through 16 inclusive: All words and terms used herein whit Retirement Law shall have the mean specifically provided. "Normal retiree miscellaneous members entering m~ date of the amendment to contract, a entering membership for the first tie after the effective date of this amends members entering membership on amendment to contract, and age membership for the first time in the date of this amendment to contract. h are defined in the Public Employees' ng as defined therein unless otherwise Went age" shall mean age 55 for local ;mbership on or prior to the effective ~e 60 for local miscellaneous members ne in the miscellaneous classification gent to contract, age 50 for local safety or prior to the effective date of this 5 for local safety members entering safety classification after the effective 2. Public Agency shall participate in the Public:, Employees' Retirement System from and after September 1, 1945 akirig its employees as hereinafter provided, members of said System ubject to all provisions of the Public Employees' Retirement Law except uch as apply only on election of a contracting agency and are not provid d 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, de end and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board o Administration, and the California Public Employees' Retirement Fund fr m ar~y claims, demands, actions, losses, liabilities, damages, judgment ,expenses and costs, including but not limited to interest, penalties and a orneys fees that may arise as a result of any of the following: (a) Public Agency's election to rovide retirement benefits, provisions or formulas under this Contr ct that are different than the retirement benefits, provisio s or formulas provided under the Public Agency's prior non-C IPERS retirement program. (b) Public Agency's election to mend this Contract to provide retirement benefits, provisio s or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency's agreement ith <~ third party other than CaIPERS to provide retirement benefi s, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contrac and provided for under the California Public Employees' Retirem nt Law. (d) Public Agency's election to 1 (commencing with section 9 Bankruptcy Code and/or Pu Contract with the CaIPERS section 365, of Title 11, of tl any similar provision of law. Ile for bankruptcy under Chapter 9 )1) o~f Title 11 of the United States ~lic Agency's election to reject this 3oard of Administration pursuant to e United States Bankruptcy Code or (e) Public Agency's election to ssign this Contract without the prior written consent of the CaIP RS' Board of Administration. (f) The termination of this Contr Public Agency or involuntaril Retirement Law. (g) Changes sponsored by Pub benefits, provisions or form additions or deletions to Cal Constitution. 4 Employees of Public Agency in the fol of said Retirement System except suc by law or this agreement: a. Local Fire Fighters (herein refe b. Local Police Officers (herein c. Employees other than local s local miscellaneous members). pct either voluntarily by request of pursuant to the Public Employees' c Agency in existing retirement as made as a result of amendments, 'ornia statute or to the California ruing classes shall become members in each such class as are excluded d to as local safety members); rred to as local safety members); members (herein referred to as 5. In addition to the classes of employe Retirement Law, the following clas members of said Retirement System: 6. 7. 8. s excluded from membership by said ~s of employees shall not become a. PERSONS WHO ARE COM ENSATED ON AN HOURLY BASIS WHO ARE EMPLOYED JANU RY 1, 1963 OR AFTER. The percentage of final compensate credited prior and current service employment before and not on or determined in accordance with Sep subject to the reduction provided (2% at age 55 Modified and Full). ~n to be provided for each year of s a local miscellaneous member in after December 19, 2003 shall be lion 21354 of said Retirement Law therein for Federal Social Security The percentage of final compensai credited prior and current service employment on or after December 1 of this amendment to contract shy Section 21354.5 of said Retirement therein for Federal Social Security (2. The percentage of final compensai credited current service as a to membership for the first time in the effective date of the amendment accordance with Section 21353 of reduction provided therein for FE Modified and Full). ~n to be provided for each year of ~s a local miscellaneous member in 2003 and not after the effective date I be determined in accordance with _aw subject to the reduction provided at: age 55 Modified and Full). on to be provided for each year of ;al miscellaneous member entering miscellaneous classification after the to contract shall be determined in said Retirement Law subject to the feral Social Security (2% at age 60 9. 10. The percentage of final compensat credited prior and current service membership in the safety classificatio amendment to contract shall be dE 21362.2 of said Retirement Law (3% < The percentage of final compensat credited current service as a local s~ the first time in the safety classific amendment to contract shall be dE 21363.1 of said Retirement Law (3% 11. Public Agency elected and elects t be subject to the following optional provisions: a. Section 21571 (Basic Level miscellaneous members only. ~n to be provided for each year of as a local safety member entering i on or prior to the effective date of this :ermined in accordance with Section t age 50 Full). on to be provided for each year of fety member entering membership for ~tion after the effective date of this rermined in accordance with Section t age 55 Full). 1959 Survivor Benefits) for local 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 Fi miscellaneous members an membership on or prior to the contract. ~) Compensation). For those local local safety members entering effective date of this amendment to f. Section 21573 (Third Level of ~ 959 Survivor Benefits) for local safety members. g. Section 20965 (Credit for U h. Section 21548 (Pre-Retire members. Sick Leave). Option 2W Death Benefit) for local fire i. Section 20475 (Different Level + 55 Modified and Full formula) a Compensation) are applicable t entering membership on or prig amendment to contract. Sectio formula) and Section 20037 (Tr applicable to local miscellaneo~ the first time in the miscellaneo of this amendment to contract. ~f Benefits). Section 21354.5 (2.7% @ id SE:ction 20042 (One-Year Final ~ local miscellaneous members r to the effective date of this 21353 (2% @ 60 Modified and Full ~ree-Year Final Compensation) are is members entering membership for as classification after the effective date AND Section 20475 (Different Level f Benefits). Section 21362.2 (3% @ 50 Full formula) and Section 2 042 (One-Year Final Compensation) are applicable to local safety m tubers entering membership on or prior to the effective date of thi amendment to contract. Section 21363.1 (3% @ 55 Full formula} and Section 20037 (Three-Year Final Compensation) are applicable o local safety members entering membership for the first time in the safety classification after the effective date of this amendme t to contract. 12. Public Agency, in accordance with Go ernment Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on November 11, 1977. Accumulated contribution of Public Agency shall be fixed and determined as provided in Gov rnment Code Section 20834, and accumulated contributions thereafter hall be held by the Board as provided in Government Code Section 20834. 13. Public Agency shall contribute to sai Retirement System the contributions determined by actuarial valuations f prior and future service liability with respect to local miscellaneous mem ers and local safety members of said Retirement System. 14. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per cot Survivor Benefits provided un Law. (Subject to annual chanc of Public Agency and its en account, based on term insu safety members. gyred member on account of the 1959 ler Section 21573 of said Retirement e.) In addition, all assets and liabilities ployE,es shall be pooled in a single ~ance rates, for survivors of all local b. A reasonable amount, as f installment within 60 days of administering said System a Agency, not including the cost: investigation and valuations rep xed by the Board, payable in one date of contract to cover the costs. of it affects the employees of Public > of special valuations or of the periodic wired by law. c. A reasonable amount, as fi installment as the occasions valuations on account of empl the periodic investigation and v 15. 16 Contributions required of Public Ager to adjustment by Board on account of Retirement Law, and on account of System as determined by the periodic said Retirement Law. Contributions required of Public Agei Public Agency to the Retirement Sys the period to which said contributions regulation. If more or less than the cc any period, proper adjustment shall k remittances. Adjustments on accou~ any employee may be made by direc the Board. B. This amendment shall be effective on the BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY LORI MCGARTLAND, CHIEF EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM :ed by the Board, payable in one arise, to cover the costs of special ~yees of Public Agency, and costs of ~luations required by law. cy and its employees shall be subject amendments to the Public Employees' the experience under the Retirement investigation and valuation required by cy ar~d its employees shall be paid by em within fifteen days after the end of ~efer or as may be prescribed by Board rrect amount of contributions is paid for made in connection with subsequent t of errors in contributions required of payrrrents between the employee and ~' day of /TnY'r ~ , 20t ~J ITY COUNCIL ITY OF SOUTH SAN FRANCISCO C Y RES DI G O ER fitness Date Approved as to form / ttes~ Date: ~~I i ° r ~ •.- ~ By: ~ `~_ I'e~rk City Attorney AMENDMENT ER# 93 PERS-CON-702A