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HomeMy WebLinkAboutOrd. 1562-2018 (18-833)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Ordinance: ORD 1562 -2018 File Number: 18 -833 Enactment Number: ORD 1562 -2018 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. 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, on July 25, 2018, the City Council of the City of South San Francisco adopted a resolution of intent to approve an amendment to said contract, which resolution contained a summary of the change proposed in said contract; and WHEREAS, the City Council of the City of South San Francisco wishes to adopt an ordinance to approve an amendment to the contract between the Board of Administration California Public Employees' Retirement System and the City Council, City of South San Francisco, implementing the ability for Classic Safety members to pay a portion of the employer share of their California Public Employees' Retirement System (Ca1PERS) pension costs. NOW, THEREFORE, BE IT ORDAINED that based on the entirety of the record before it, as described below, the City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. APPROVAL OF CALPERS CONTRACT AMENDMENT The City Council hereby approves an amendment to the contract between the Board of Administration California Public Employees' Retirement System and the City of South San Francisco, implementing the ability for Classic Safety members to pay a portion of the employer share of their Ca1PERS pension costs, attached hereto and incorporated herein as Exhibit A. The City Council also hereby authorizes the City Manager to enter into and execute the amendment to the contract on behalf of the City in substantially the same form as attached hereto as Exhibit A; to make any revisions, amendments, or modifications, subject to the approval of the City Attorney, deemed necessary to carry out the intent of this ordinance and which do not materially alter or increase the City's obligations thereunder. City of South San Francisco Page 1 File Number. 18 -833 SECTION 2. SEVERABILITY Enactment Number. ORD 1562 -2018 If any provision of this ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE. This ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the South San Francisco Examiner, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days after adoption. E 3 Introduced at a regular meeting of the City Council of the City of South San Francisco held the 8th day of August 2018. At a meeting of the City Council on 9/12/2018, a motion was made by Karyl Matsumoto, seconded by Mark Addiego, that this Ordinance be adopted. The motion passed. Yes: 4 Mayor Normandy, Mayor Pro Tem Matsumoto, Councilmember Gupta, and Councilmember Addiego Absent: 1 Attest �Pmandy, Mayor City of South San Francisco Page 2 I' caliiomia EXHIBIT Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Bow 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, 1953, February 1, 1967, January 1, 1968, January 1, 1969, November 1, 1973, April 19, 1977, November 11, 1977, December 19, 1980, August 23, 1985, January , nua�ry 23,a1987, 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 �ntract as executed effective December 15, 2017, and hereby replaced by the foliring 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 Callomia 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 other than CalPERS 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 fog owing 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 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°/6 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°k @ 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% 0 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 �tuiV "Lkt 1wr ONLY 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°fa 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 Most Sharing Percentage', shall not exceed the Employer Normal Cost Rate, as that rate is defined In the CalPERS 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 shalt 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. H 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 F BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SOUTH SAN FRANCISCO .41 BY ARNITA PAIGE, CHIEF PENSION CONTRACT PROGRAMS DIVIStQVJ PUBLIC EMPLOYFmq' Q� AMENDMENT UPERS !D 97147827092 PERS- CON -702A PREFUNDING REMENT SYSTEM BY PRESIDING OFFICER�� L r� Witness Data'�O" Attest: •� Qo rk2