HomeMy WebLinkAboutReso 121-2018 (18-664)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
Resolution: RES 121 -2018
File Number: 18 -664 Enactment Number: RES 121 -2018
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT
TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM AND THE CITY OF SOUTH SAN FRANCISCO.
WHEREAS, the Public Employees' Retirement 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, one of the steps in the procedures to amend this contract is the adoption by the governing
body of the public agency, the City Council of the City of South San Francisco, of a resolution giving
notice of its intention to approve an amendment to said contract, the resolution shall contain a summary
of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20516 (Employees Sharing Additional Cost) of an additional I% for classic local fire
members in the International Association of Firefighters, Local 1507, and additional 1 % for classic local
police members in the South San Francisco Police Officers Association, an additional 1% for classic
local fire members in the Public Safety Managers group, an additional 1% for classic local police in the
Public Safety Managers group, an additional 1% for classic local fire members in the Executive Team
group, and an additional I% for classic local police members in the Executive Team group.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give
notice of intention to approve an amendment to the contract between said public agency and the Board
of Administration of the Public Employees' Retirement System, a copy of said amendment being
attached hereto, as an "Exhibit" and by this reference made a part hereof.
At a meeting of the City Council on 7/25/2018, a motion was made by Mark Addiego, seconded by Richard
Garbarino, that this Resolution be adopted. The motion passed.
City of South San Francisco Page 1
File Number: 18 -664
Enactment Number. RES 121 -2018
Yes: 5 Mayor Normandy, Mayor Pro Tem Matsumoto, Councilmember Garbarino,
Councilmember Gupta, and Councilmember Addiego
Attest py
to Ma 'ne i
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City of South San Francisco Page 2
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CAPERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
euwao 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
and December 15, 2017 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 December 15, 2017, and hereby replaced by the following paragraphs
numbered 1 through 18 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 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 ONLY"
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 underthe
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 other than 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 ONLY"
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).
PLEASE DO 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.
f. 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
N u,UiN 1XHUT O fL«'1 "
Section 20516 (Employees Sharing Additional Cost):
From and after December 15, 2017 and until the effective date of this
amendment to contract, 1% for classic local fire members in the
International Association of Firefighters Local 1507,
From and after the effective date of this amendment to contract, 2%
for classic local fire members in the International Association of
Firefighters Local 1507.
From and after December 15, 2017 and until the effective date of this
amendment to contract, 1% for classic local police members in the
South San Francisco Police Association.
From and after the effective date of this amendment to contract, 2%
for classic local police members in the South San Francisco Police
Association.
From and after December 15, 2017 and until the effective date of this
amendment to contract, 1% for classic local fire members in the
Public Safety Managers group.
From and after the effective date of this amendment to contract, 2%
for classic local fire safety members in the Public Safety Managers
group.
From and after December 15, 2017 and until the effective date of this
amendment to contract, 1% for classic local police members in the
Public Safety Managers group.
From and after the effective date of this amendment to contract, 2%
for classic local police safety members in the Public Safety Managers
group.
From and after December 15, 2017 and until the effective date of this
amendment to contract, 1 % for classic local fire members in the
Executive Team group.
From and after the effective date of this amendment to contract, 2%
for classic local fire members in the Executive Team group.
From and after December 15, 2017 and until the effective date of this
amendment to contract, 1 % for classic local police members in the
Executive Team group.
From and after the effective date of this amendment to contract, 2%
for classic local police members in the Executive Team group.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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 -
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY --
ARNITA PAIGE, CHIEF \
PENSION CONTRACT `D PREFUNDING
PROGRAMS DIVISIQ,
PUBLIC EMPLOYW' RETIREMENT SYSTEM
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AMENDMENT CaIPERS JD #7147827092
PERS- CON -702A
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
BY _ -1
PRESIDING OFFICER '`
Witness Dater j
Attest:
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