HomeMy WebLinkAboutResolution 2018-051 N.C.S. 04/16/2018Resolution No. 2018-051 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 May 7, 2017, the
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 1% 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. 2018-051 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.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Pprov a to
Council of the City of Petaluma at a Regular meeting on the 161h day of April 2018, fo m
by the following vote: ,
City Attorn
AYES: Albertson, Barrett, Mayor Glass, Vice Mayor Healy, Kearney, Miller
NOES:
None
ABSENT:
King
ABSTAIN:
ne
t r
ATTEST:
City Clerk
ctl-
Mayor
Resolution No. 2018-051 N.C.S. Page 2
Ca1PERS
California
Public Employees' Retirement System
Aw
Exhibit A
AMENDMENT O 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, December 28, 2012, June 19, 2017 and February 26, 2018 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree as
follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed effective
February 26, 2018, and hereby replaced by the following paragraphs numbered 1
through 17 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 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. 2018-051 N.C.S. Page 3
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. 2018-051 N.C.S. Page 4
PLEASE DO NOT SIGN "EXHIBIT ®N Y'
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. 2018-051 N.C.S. Page 5
PLEASE DO NOT SIGN "EXHIBITONLY"
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.
f. 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).
j. 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% Q 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 June 19, 2017 and until 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. 2018-051 N.C.S. Page 6
From and after February 26, 2018, 3% for local miscellaneous members in
the Unrepresented Executive Management group, Department Heads Unit
8 and Public Safety Mid -Management Association Unit 10.
From and after February 26, 2018, 3% for local safety members in the
Department Heads Unit 8 and Public Safety Mid -Management Association
Unit 10.
From and after the effective of this amendment to contract, 4% 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.
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.
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.
Resolution No. 2018-051 N.C.S. Page 7
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 64 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.
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 beffective on the
BOARD OF ADMINISTRATICj7
PUBLIC EMPLOYEES' REtEMENT SYSTEM
BY
ARNITA PAIGE, CHIS
PENSION CONTRA''S AND PREFUNDING
PROGRAMS[ TVI N
PUBLIC EMPLO S' AND
SYSTEM
AMENDMENT CaIPERS ID #5476407298 PERS-CON-702A
day of
CITY COUNCIL
CITY OF PETALUMA
Pi
BY
PRESIDING OFFIJ;��R
�7
Witness
Attest.
Clerk
Resolution No. 2018-051 N.C.S. Page 8