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HomeMy WebLinkAboutOrd. 1621-2021 (21-320)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Ordinance: ORD 1621-2021 File Number: 21-320 Enactment Number: ORD 1621-2021 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 ("PERS") 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 an amendment to the PERS contract 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 (I%) for a total additional two percent (2%) effective the first full pay period of July 2021 (July 9, 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, City of South San Francisco Page 1 File Number: 21-320 Enactment Number. ORD 1621-2021 California Public Employees' Retirement System and the City Council of the City of South San Francisco ("Exhibit A") attached hereto and incorporated herein by this reference. Section 3. AUTHORIZATION. 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 and adopted at a regular meeting of the City Council of the City of South San Francisco held the 28th day of April 2021. At a meeting of the City Council on 5/26/2021, a motion was made by Vice Mayor Nagales, seconded by Councilmember Flores, that this Ordinance be adopted. The motion passed. Yes: 5 Mayor Addiego, Vice Mayor Nagales, Councilmember Nicolas, Councilmember Coleman, and Councilmember Flores Attest by Ugm L vi�-, losa Govea Acosta, City Clerk U u Mark Addiego, Mayor City of South San Francisco Page 2 California Public Employees' Retirement System EXHIBIT AMEND"I'MENT TO CONTRACT 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, October 19, 2018 and July 24, 2020 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 July 24, 2020, 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" 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 o1 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 DD NOT S9uN "EXHIBIT ONLY' 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 July 24, 2020 and until the effective date of this amendment to contract, 1 % for classic local miscellaneous members in the Executive Management Unit. From and after the effective date of this amendment to contract, 2% for classic local miscellaneous members in the Executive Management Unit. 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. 8'k This amendment shall be effective on the BOA ' `OF ADMINISTRATION PUBLIC'�PLOYEES' RETIREMENT SYSTEM BY ARNITA PAIGE, 0% PENSION CONTRACAND PREFUNDING PROGRAMS DIVISIOW� PUBLIC EMPLOYEES' REMENT SYSTEM 0% AMENDMENT Ca1PERS ID #7547827092 PERS-CON-702A day of — CITY COUNCIL CI-6OF SOUTH SAN FRANCISCO BY 1 PRESIDING"QE ICER Witness Date r� Attest: Clerk