HomeMy WebLinkAboutReso 2020-118 - Approve Amendment to Contract between the Board of Admin Calif Public Emp Retirement System & the City Council of the COR RESOLUTION NO. 2020-118
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL OF THE CITY OF REDDING
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 of a resolution giving notice of its intention to approve an
amendment to said contract, which resolution shall contain a summary of the change proposed in
said contract; and
WHEREAS, the following is a statement of the proposed change:
Section 20516 (Employees Sharing Additional Cost) of 1% for classic local miscellaneous
members in the Unrepresented—Non-Safety Employees and Elected Officials.
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.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular
meeting of the City Council of the City of Redding on the 15th of September, 2020, by the
following vote:
AYES: COUNCIL MEMBERS: Dacquisto,Resner,Schreder,Winter,and McElvain
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ADAM McELVAIN, Mayor JD
0
ATTEST: FORM APPROVED:
0
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PAMELA MIZE, City C erk BARRY E..De ALT, City Attorney
D9
CAPERS
Exhibit
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Redding
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 January
1, 1954, and witnessed December 8, 1953, and as amended effective October 1, 1956,
June 1, 1962, March 21, 1965, October 27, 1968, January 1, 1969, December 19, 1971,
February 1, 1974, December 26, 1976, July 1, 1977, November 26, 1978, April 1, 1979,
July 6, 1980, July 5, 1981, January 3, 1982, March 27, 1983, June 30, 1985, June 29,
1986, December 1, 1989,January 6, 1995, May 19, 1995, February 8, 1998,July 3, 1998,
February 2, 2001, November 24, 2002, December 8, 2002, September 8, 2012,
September 25, 2016, January 1, 2017, October 21, 2018, July 14, 2019, November 17,
2019, March 22, 2020 and July 26, 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 26, 2020, and hereby replaced by the following paragraphs
numbered 1 through 18 inclusive:
PLEASE DO NOT SIGN EXHIBIT ONLY"
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, age 62 for new local miscellaneous
members, age 50 for classic local safety members entering membership in
the safety classification on or prior to September 8, 2012, age 55 for classic
local safety members entering membership for the first time in the safety
classification after September 8, 2012 and age 57 for new local safety
members.
2. Public Agency shall participate in the Public Employees' Retirement System
from and after January 1, 1954 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 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:
PLEASE OO NOT SIGN `EXHIBIT ONLY"
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).
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:
NO ADDITIONAL EXCLUSIONS
6. Prior to January 1, 1975, those members who were hired by Public Agency
on a temporary and/or seasonal basis not to exceed 6 months were
excluded from PERS membership by contract. Government Code Section
20336 superseded this contract provision by providing that any such
temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975. Legislation repealed and
replaced said Section with Government Code Section 20305 effective July
1, 1994.
7. This contract shall be a continuation of the benefits of the contract of the
Cascade Community Services District and the Enterprise Public Utility
District, hereinafter referred to as "Former Agencies", pursuant to Section
20508 of the Government Code, Former Agencies having ceased to exist
and succeeded by Public Agency on June 23, 1976 and December 22,
1976, respectively. Public Agency, by this contract amendment dated July
1, 1977, assumes the accumulated contributions and assets derived
therefrom and liability for prior and current service under Former Agencies'
contracts with respect to the Former Agencies' employees. Legislation
repealed Section 20508, Statutes of 1949, effective January 1, 1988.
8. The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
shall be determined in accordance with Section 21354 of said Retirement
Law, subject to the reduction provided therein for service on and after
January 1, 1969,the effective date of Social Security coverage, and prior to
December 31, 1981, termination of Social Security, for members whose
service has been included in.Federal Social Security(2% at age 55 Full and
Modified).
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).
PLEASE DO NOT SIGN "EXHIBIT ONLY
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 September 8, 2012
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 with this agency in the safety classification
after September 8, 2012 shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
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 21222.1 (One-Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
b. Section 21024 (Military Service Credit as Public Service).
C. Section 20965 (Credit for Unused Sick Leave).
d. Section 20042 (One-Year Final Compensation) for classic local
miscellaneous members and for those classic local safety members
entering membership on or prior to September 8, 2012.
e. Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance).
f. Section 21427 (Improved Nonindustrial Disability Allowance) for
local safety members only.
g. Section 20614, Statutes of 1978, (Reduction of Normal Member
Contribution Rate). From November 26, 1978 and until March 31,
1979, the normal local miscellaneous member and local safety
member contribution rates shall be reduced by 1%;from April 1, 1979
through July 5, 1980, the normal local miscellaneous members and
local safety member contribution rates shall be reduced by 2%; from
July 6, 1980 through January 2, 1982, the normal local
miscellaneous member contribution rate shall be reduced by 3%;
and from July 6, 1980 through March 26, 1983, the normal local
safety member contribution rate shall be reduced by 3%. Legislation
repealed said Section effective September 29, 1980.
BIT DG NOT SIGN "EXHI �
h. Section 20690, Statutes of 1980, (To Prospectively Revoke Section
20614, Statutes of 1978).
i. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safety members only.
j. Section 21574.5 (Indexed Level of 1959 Survivor Benefits) for local
miscellaneous members only.
k. Section 20475 (Different Level of Benefits): Section 21363.1 (3% @
55 Full formula) and Section 20037 (Three - Year Final
compensation) is applicable to classic local safety members
entering membership for the first time with this agency in the safety
classification after September 8, 2012.
I. Section 20516 (Employees Sharing Additional Cost):
From and after September 25, 2016, 1% for classic local
miscellaneous members in the Redding Peace Officers'Association.
From and after September 25, 2016, 3% for classic local police
members in the Redding Police Managers Association.
From and after January 1, 2017, 3% for classic local police members
in the Redding Peace Officers' Association.
From and after October 21, 2018, 3% for classic local fire members
in the United Public Employees of California, Local 792 Redding Fire
Management Unit.
From and after July 14, 2019, 1% for classic local miscellaneous
members in the Redding Peace Officers Association -Miscellaneous
Employees; 1% for classic local miscellaneous members in the
Redding Independent Employees' Organization Clerical, Technical
and Professional Unit; and 1% for classic local miscellaneous
members in the Redding Independent Employees' Organization
Supervisory/Confidential Unit.
From and after November 17, 2019, 3% for classic local fire
members in International Association of Firefighters.
From and after March 22, 2020, 1.275% for classic local
miscellaneous members in the United Public Employees of
California Local 792 Technical Employees Unit.
From and after March 22, 2020, 1.275% for classic local
miscellaneous members in the International Brotherhood of
Electrical Workers AFL-CIO - Electric Department.
,'LLASE DD NOT SIGN 'EXHIBIT O Y
From and after March 22, 2020, 1.275% for classic local
miscellaneous members in the International Brotherhood of
Electrical Workers AFL-CIO - Maintenance Employees.
From and after July 26, 2020, 3%for classic local safety members in
the Unrepresented Public Safety Management group.
From and after the effective date of this amendment to contract, 1%
for classic local miscellaneous members in the Unrepresented —
Non-Safety Employees and Elected Officials group.
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 Cast
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
December 26, 1976. 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 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 21574 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. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574.5 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
miscellaneous members.
C. 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.
d. 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 ,
BOF ADMINISTRATION C TY COUNCIL
PUBLI MPLOYEES' RETIREMENT SYSTEM OF REDDING
BY °� BY
ARNITA PAIGE, C PRESIDIN ICER
PENSION CONTRACTS PREFUNDING
PROGRAMS DIVISION '
PUBLIC EMPLOYEES' RETIFENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS ID#4091792151
PERS-CON-702A