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HomeMy WebLinkAboutOrd. 1601-2020 (20-292)City of South San Francisco - 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