HomeMy WebLinkAboutStaff Report 03/12/2001 (4) CITY OF PETALUMA,,CALIFORNIA
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AGENDA. BILL
Agenda Title: Meeting Date:
.Addition of Ca1PERS"•457 Deferred Compensation 'Program to March 5,,2001
"Emp_Ioyee,Benefits'Program
,Department: Director: Contact Person: Phone Number:
Finance William J. Thomas William J. Thomas 778=4323
.Cost of Proposal: None Account Number: N/A
Amount Budgeted: N/A Name of Fund:
Attachments to Agenda Packet:°Itemb`
Resolution Authorizing Adoption of CaIPERS 457'Deferred Compensation Plan
Summary Statement: The California Public Employees' Retirement System (CaIPERS) offers an IRS
457 Deferred Compensation Plan that can be available to the.City's.employees. This system is similar to
the 457 Plan that the City currently offers to its employees that is administered through Hartford Life
Insurance. .A,resolution of the City Council"is required to be able:to"implement this program.
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Council Priority: THIS AGENDA,ITEMt-IS CONSIDERED•TO BE:PART OF, OR NECESSARY To, ONE OR
MORE OF THE 1999-2000 PRIORITIES!ESTABLISHED BY THE CITY COUNCIL ON JANUARY 30, 1999
AND MARCH 18, 2000
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Priority(s):
Recommended City Council-Action/Suggested"Motion : Adoptdthe=Resolution
eviewedb Finanee'Director: Revie .au�.:-s_.: _orne ;:;. Approved by City Manager:
Date: Date:
Today's ate: Revision.# & •"I a •,Revised: File Code:
February 12, 2001 # SUagendz7CALFERS 457
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r('. CITY OF'PETALUMA,,.'CALIFORNIA
March=5, 2001 .
AGENDA REPORT •
• ' FOR
CALPERS!457 DEFERRED COMPENSATION PLAN
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1. EXECUTIVE•SUMMARY: The California Public Employees' Retirement System
(Ca1PERS) offers,an IRS 457 Deferred Compensation Plan°;that can be•available.to the City's
employees- This system is similar to the 457 Plan that the City currently offers to its employees
that is.administered'through Hartford Life Insurance- A resolution;of the City Council is required
to beable.to implement this program
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2. BACKGROUND: As aiside,letterto;the labor agreement:between the City and the
Police, the City agreed to research the potential forproviding'sthe.457plan offered by Ca1PERS
to.employees. Management antipolice representatives rnet:witlkCalPERS and went over their
plan.
The Plan does offer alternatives to the that are not offeredby-tbe existing Hartford
Deferred Compensation Plan. Most notably is the self-managed'account that allows the
employee greater freedom in managing their investments.. The Plan also allows for the employee.
- to invest in;different,investment opportunities than,those offered by Hartford.
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The inclusion of.this plan can be managed by our existing payroll system with minor
modifications. To adopt this,plan, it is,necessary, for the Plan=to be adoptedby the governing
body. Theproposed resolution,meets=thaticriterion., -
3. ALTERNATIVES: Donot adopt-the•resolution.
4. FINANCIAL'IMPACTS: It is estimated;that itwill-take°approximately 3 hours of the
Payroll Technician's time to.set;`up"this:pfogram within.the:payroll system; This is
approximately$100. Ongoing±costs for-monitoring this program with be approximately $10:00
per pay period.,,Additional costsinaybeiincurred if programming changes are required to the
existing payrollrsystem.
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5. CONCLUSION:• The'City agreed to research the possibility of offering the Ca1PERS
457 Plan to employees as part of the labor agreement with Police. After Meeting With
representatives of CaIPERS, it was determined that offering this;Planwould increasethe
investment options available to all employees- ,Additionally,including,this Plan as an additional
457 Plan can be handled by our existing payroll system
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6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL
INDENTIFY1SUCCESS OR COMPLETION: Finalize P.lan'with Ca1PERS and make
necessary adjustments to the payroll system:to implement this'Plan.
• 7. RECOMMENDATION: Adopt.the.resolution
s:tagenda/CaI PERS45 7
Resolution No. N.C.S.
2 of the City of Petaluma, California
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APPROVING ADOPTION OF CALIFORNIA PUBLIC EMPLOYEES' •
DEFERRED COMPENSATION PLAN
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8 WHEREAS, the.City of Petaluma desires to establish an additional"deferred compensation
9 plan for the benefitofits•employees;:and
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11 WHEREAS, the Board of Administration (the Board") of the California Public Employees'•
12 Retirement System ("CalPERS' )•has established the California Public Employees'Deferred
13 Compensation Plan (the "CalPERS Plan") which may be adopted by a governmental employer the
14 employees of which are public employees; and
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16 WHEREAS, the City of Petaluma believes that the CalPERS Plan and the investment options
17 available thereunder•will"provide•valuable benefits to its employees; and •
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19 WHEREAS, the Board has appointed State Street Bank and Trust Company("State Street")
20 to perform administrative services under-the PERS plan and to act as the'Board's agent in all matters
21 relating to the administration of'the CalPERS Plan;
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23 NOW, THEREFORE, BE IT RESOLVED, that the City of Petaluma adopts the CalPERS
24 Plan for the benefrt"'of its employees and authorizes and-directs the City Manager,to execute the
2` ' attached adoption agreement on behalf of the City of Petaluma, and to provide State'Street with such
2e . 'information and cooperation'as may be needed on an ongoing basis in the administration,of the
27 CalPERS plan.. A:copy'of this resolution, the agreement, and any attachments,shallbe,on file!in'the
28 office of the City Clerk.
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30 Under the power and authority conferred•upon this Council by"the,Charter"of said'City:,
31 REFERENCE Thereby certify the foregoing'Resolution wasfintroduced,and adopted by the
32 Council of;the'City of Petaluma at a Regular meeting-on 2000 Approved as to
33 by the following-vote: form:
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36 City Attorney
37 AYES:
38 NOES:
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39 ABSENT:
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41. ATTEST:
42 City Clerk Mayor'
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44 • Resolution>No. NCS
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CALPERS 457 PROGRAM
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• �ylifornia Public Employees'Retirement System
41PERS 457:Deferred Compensation Program .
EMPLOYER ADOPTION AGREEMENT
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13y-executing this Agreement,the employer identified below,(tiie"Employes");adopts`theCalifornia Public Employees' Deferred Compensation
Plan(the"Plan')for the benefit of its employees.The Employer fuz4her agrees and-represents as follows:
• 1. The Employer is a political subdivision of the State Of California eligible to adopt the Plan..for the benefit of its employees.
' 2. The Employer has duly adopted a resolution(copy attached)or taken such other'offrcial action as required for its lawful adoption and
implementation of this Plan and has authorized the undersigned to execute this agreement on behalf of the Employer.
3. The.Employer has been furnished with and revieweda,copy,of the Plan document which.explains the rights and obligations of the
Employer under the Plan,as well as the rights and options available;to the Employers`employees-under the Plan; the Employer agrees
to follow the terms of the Plan document,which are incorporated herein by reference.
4. The Employer understands and agrees that all amounts,deferred under the`Plan are to be invested in the Public Employees'Deferred
Compensation Fund(the"Fund"),an investment entity established to hold amounts;deferred under the Plan,and that the Employer
shall have no right to sell,redeem or otherwise liquidate its investments in the Fund,except as provided in Article 9 of the Plan.
5. The Employer understands that except for certain responsibilities delegated to the Employer under the Plan,the administration of the
Plan and Fund is subject to the exclusive control of,the Board of Administration of the Public Employees'Retirement System(the
"Board").The:,Employer further understands that the board has appointed State:Street Bank-and Trust Company and State Street Bank
and Trust.Company of.California,MA. (collectively, "State Stree() to perform administrative services under the Plan and to act as the .
Board's agent in all matters relating to the administration of the Plam the Employer agrees to deal directly with State Street(or any
successor,agent duly appointed by the Boardl on all matters relating to itslparticipationin the Plan and to cooperate with Stare Street
} in the dissemination of Plan information to the Employers employees.
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6. The information set forth on the attached specifications pageis;complete and accurate andrmaybe relied upon by the Board and State
Street in the administration of the Plan on behalf of the Employer and its employees, unless'and until the Employer has provided State
Street with a written modification of iuch.specifications.
7. The Employer has been furnished with a copy of a manual that describes the!procedures tobe,followed,by the Employer in the
administration of the Plan for its employees;'and the•Employer agrees to adhere to"the procedures set forth in that manual,and in any
revisions thereof or procedural notices thatare hereafter form/fed,to the Employer.
8. The Employer.agrees to make the Plan-available to'its.employees'and:and to abide;byt this Agreement commencing on the
effective date shown on the attached specifications page;,this Agreement shall remaimin full force and effect unless terminated by the
Employer or,the;Board upon sixty(60)days prior written'notice.
(Name of Employer),
:
By:
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(Title)
Date:
Accepted by Stare Street Bank and Trust Company on behalf of the Board of Administration':of the Public Employees'Retirement System
By:
Date:, Witness:
GIPERS 015:-7/99