HomeMy WebLinkAboutResolution 2017-058 N.C.S. 04/17/2017Resolution No. 2017 -058 N.C.S.
of the City of Petaluma, California
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO THE
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE
CITY COUNCIL OF THE CITY OF PETALUMA
WHEREAS, the Public Employees' Retirement 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 public agencies may elect to
subject themselves and their employees to amendments to said Law; and
WHEREAS, the City of Petaluma, by action of the City Council in accordance with the
Public Employee's Retirement Law, has entered into a contract with PERS effective January 1,
1950, and subsequently amended, with the most recent amendment occurring December 28,
2012, which PERS contract provides for participation of the City and its employees in PERS;
and
WHEREAS, one of the steps in the procedures to amend a public agency contract with
PERS is the public agency governing body's adoption of a resolution giving notice of its
intention to approve a contract amendment, which resolution shall contain a summary of the
proposed change; and
WHEREAS, following is a summary of a proposed change the City intends to implement
to the City's PERS contract in accordance with agreements reached with City bargaining units
regarding such change and the Public Employees' Retirement Law to provide for contributions
of specified unit members to the City's cost of participating in the City's PERS agreement:
To become subject, from and after the effective date of the amendment, to Section 20516
of the Public Employees' Retirement Law (Employees Sharing Additional Cost) to
provide for employee cost sharing of 3% for local miscellaneous members in the
American Federation of State, County and Municipal Employees Unit 1 Confidential,
American Federation of State, County and Municipal Employees Unit 2 Maintenance,
American Federation of State, County and Municipal Employees Unit 3 Clerical and
Technical, Petaluma Professional and Mid - Managers Association Unit 4 Professional,
Petaluma Professional and Mid - Managers Association Unit 9 Mid Managers and
Petaluma Professional and Mid - Managers Association Unit 11 Confidential;
Resolution No. 2017 -058 N.C.S. Page 1
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby gives notice in accordance with Section 20471 and other applicable sections of
the Public Employees' Retirement Law of the City's intention to approve an amendment to the
contract between the City and the Board of Administration of the Public Employees' Retirement
System, a copy of said amendment being attached hereto, as "Exhibit A" and by reference made
a part hereof.
REFERENCE
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Under the power and authority conferred upon this Council by the Charter of said City.
I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 17`, day of April, 2017, onnF
by the following vote:
City Attorney
Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller
None
None
Resolution No. 2017 -058 N.C.S. Page 2
Exhibit A
j4\f#,%ei
Ca1PERS
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Petaluma
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, 1950, and witnessed October 18, 1949, and as amended effective August 1,
1959, November 1, 1959, March 1, 1965, June 1, 1965, April 1, 1969, January 1, 1974,
November 1, 1980, November 1, 1981, July 1, 1982, January 1, 1987, December 28,
1987, January 1, 1992, January 4, 1996, June 30, 1996, May 4, 1998, April 5, 1999,
June 30, 2001, January 16, 2003, October 7, 2008, November 15, 2012 and December
28, 2012 which provides for participation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs 1 through 15 are hereby stricken from said contract as executed
effective December 28, 2012, and hereby replaced by the following paragraphs
numbered 1 through 17 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 in the miscellaneous classification on or prior to December
28, 2012, age 60 for classic local miscellaneous members entering
membership for the first time in the miscellaneous classification after
December 28, 2012, age 62 for new local miscellaneous members, age 50
for classic local safety members entering membership in the safety
classification on or prior to November 15, 2012, age 55 for classic local
safety members entering membership for the first time in the safety
classification after November 15, 2012 and age 57 for new local safety
members.
Resolution No. 2017 -058 N.C.S. Page 3
2. Public Agency shall participate in the Public Employees' Retirement
System from and after January 1, 1950 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:
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).
Resolution No. 2017 -058 N.C.S. Page 4
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. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
entering membership in the miscellaneous classification on or prior to
December 28, 2012 shall be determined in accordance with Section
21354 of said Retirement Law (2% at age 55 Full).
7. 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 with this agency in the miscellaneous
classification after December 28, 2012 shall be determined in accordance
with Section 21353 of said Retirement Law (2% at age 60 Full).
8. 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).
9. 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 November
15, 2012 shall be determined in accordance with Section 21362.2 of said
Retirement Law (3% at age 50 Full).
10. 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 November 15, 2012 shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
11. 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).
12. 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 20042 (One -Year Final Compensation) for classic local
safety members entering membership on or prior to November 15,
2012 and classic local miscellaneous members entering
membership on or prior to December 28, 2012. .
Resolution No. 2017 -058 N.C.S. Page 5
' try LL
C. Section 20965 (Credit for Unused Sick Leave).
d. Section 21326 (One -Time 1 % to 7% Increase For Local
Miscellaneous Members Who Retired or Died Prior to July 1, 1974).
Legislation repealed said Section effective January 1, 2002.
e. Sections 21624, 21626 and 21628 (Post- Retirement Survivor
Allowance) for local fire members only.
Section 21024 (Military Service Credit as Public Service).
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safety members only.
h. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
Section 20434 ( "Local Fire Fighter" shall include any officer or
employee of a fire department employed to perform firefighting, fire
prevention, fire training, hazardous materials, emergency medical
services, or fire or arson investigation services as described in
Government Code Section 20434).
Section 20903 (Two Years Additional Service Credit).
k. Section 20475 (Different Level of Benefits). 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 November 15, 2012.
Section 21353 (2% @ 60 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 December 28,
2012.
Section 20516 (Employees Sharing Additional Cost):
From and after the effective date of this amendment to contract, 3%
for local miscellaneous members in the American Federation of
State, County and Municipal Employees Unit 1 Confidential,
American Federation of State, County and Municipal Employees
Unit 2 Maintenance, American Federation of State, County and
Municipal Employees Unit 3 Clerical and Technical, Petaluma
Professional and Mid - Managers Association Unit 4 Professional,
Petaluma Professional and Mid - Managers Association Unit 9 Mid
Managers, and Petaluma Professional and Mid - Managers
Association Unit 11 Confidential.
Resolution No. 2017 -058 N.C.S. Page 6
N
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 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.
13. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
November 1, 1980. 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.
14. 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.
15. 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 miscellaneous members.
b. 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.
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.
Resolution No. 2017 -058 N.C.S. Page 7
4
16. 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.
17, 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 CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF PETALUMA
BY BY
ARNITA PAIGE, CHIEF PRESIDING & CER
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM vim`
AMENDMENT CaIPERS ID #5476407298
PERS - CON -702A
Resolution No. 2017 -058 N.C.S. Page 8