HomeMy WebLinkAboutStaff Report 4.B 09/24/2012 Ag-en a'Iteww#4.3
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DATE: September 24, 2012
TO: Honorable-Mayor'and Members of the City Council through the City Manager
FROM: Pamala Stephens, Human Resources Manager 7 '
SUBJECT: Resolution of Intention to Approve an Amendment to the.Contract Between the
Board of Administration California Public Employees' Retirement System and
the City Council:City of Petaluma and the Introduction (First Reading) of the
Ordinance Authorizing an Amendment to the,Contract to Provide the 3%@55
Full Formula and Three-year Final Compensation to City of Petaluma Local
Safety Members,Entering Membership for the First-time in the Safety
Classification after,the Effective the Date of the Amendment to the Contract.
RECOMMENDATION
It is recommended that the City Council:
1. Adopt the Resolution of Intention to Approve an Amendment to Contract Between the Board
of Administration California-Public Employees' Retirement System and the City Council
City of Petaluma.for a second tier,of retirement benefits that provide the 3% at 55 full
formula and the three=year,final average compensation to City of Petaluma local safety
• members entering membership for the first time in the,safety classification after the effective
date of the amendment to the contract.
2. Introduce the Ordinance Authorizing an Amendment to the Contract Between the City of
Petaluma and Board of Administration of the California Public Employees' Retirement
System to Provide the 3%@55 Full formula and Three-year Final Compensation to City of
Petaluma Local Safety Members Entering Membership for the First Time in the Safety
Classification after the effective date of the Amendment to Contract.
BACKGROUND
On-July.2, 2012 the City Council approved an MOU between the Peace Officers' Association of
Petaluma for employees of Unit 6 (Police) and the City. On July 16, 2012 the City Council
approved an MOU between°the International Association of Firefighters Local 1415 for
employees_of Unit'7 (Fire) and the City. Also on July 16, 2012 the City Council approved an
MOU between the,Public Safety Mid-Management Association,for employees of Unit 10 (Public
Safety Mid-Managers). On August 6, 2012 the City,Council approved a Compensation Plan for
employees of Unit 8E(Department Directors) which include the Fire and Police Chiefs. The
MOUs for Unit.6, 7 and 10 and the Compensation Plan for Unit 8 include a provision of the
Agenda,Rev iew1
City AttomeyL Finance Director City Manager
Agreement to provide for a 3%.at 55 formula and the three-year final average compensation
effective upon agreement with,the City's Safety bargaining units. The City now has agreements
with all City Safety bargaining units and may proceed to amend its contract with Ca1PERS for a
lower retirementbenefit.
DISCUSSION
The City of Petaluma intended, following agreement with safety bargaining units, to amend its
contract with Ca1PER$ for a second tier of retirement benefits for safety members effective
November 15, 2012. The effective date of November 15,2012, is the earliest date a contract
amendment could be made effective under the Ca1PERS contract amendment process. However,
in the middle of that process, Governor Jerry Brown signed pension reform legislation known as
the California,Public Employees' Pension Act of 2013. Provisions of the Pension Reform Act
will go into effect on January 1,„2013. The City of Petaluma contracts with CaIPERS for
retirement benefits and therefore elements of the Pension,Reform.Act will apply to the City of
Petaluma. While.CaIPERS has issued a.prelinminary analysis of the legislation, many aspects of
the legislation will require further clarification or amendments to address implementation issues.
Given the need for further clarificationand other unknown affects of the legislation, City staff
recommends the City proceed with'the contract amendment for'tlie second tier of retirement benefits
for safety members.
The process for the contract amendment required by CaIPERS includes adoption of the
Resolution of Intention and.tworeadings of the[Ordinance. It'..is recommended that the City
Council adopt the Resolution of Intention and proceed to introduce an ordinance making that
amendment to the contract. Adoption of the ordinance would-then,occur at the council meeting
on October 15,2012, meetingthe statutory requirement that the adoption,of the ordinance must
takekplace at least 20 days after adoption,of the Resolution of Intention. The effective date of
the Ordinance would then be30 days from October 15,2012, if it is adopted on that date. The
effective date of the CaIPERS Contract Amendment would be the day following the effective
date of the ordinance which would be November 15, 2012.
If approved, this contract.amendment creates a second tier,of retirement benefits that provide the
3% at 55 full formula and,the'three-year final average compensation.to City of Petaluma local
safety members entering membership for the first time in the safety'classification on or after
November 15, 2012.
FINANCIAL IMPACTS'
Government Code Section 7507 requires that the future annual costs as determined by the
Ca1PERS Actuary for the change in retirement benefits be made public at a public meeting at
Ieast,two Weeks prior to the adoption of the Ordinance..Incompliance with Government Code
Section 75,07,;attached.to this report (Attachments 3 8 4) are the Actuary Reports for Fire and
Police Safety Plans.
There will be no immediate savings to the City when the second-tier or contract amendment is
implemented. Ultimately, it is=expected:that City costs will decrease as the mix of first tier
employees decreases and second tier employees increase. When the mix of all first and second
tier employees reaches a 50-50% ratio, it is estimated by CalPERSL that the employer
contribution rate will decrease by 1.55% (average of 1.3% for.Fire and 1.8% for Police). In
current dollars.a,decrease of 1.55%would reduce the City's annual employer contribution for
safety members by $182,490.
ATTACHMENTS
I. Resolution of Intention to Approve an Amendment to Contract with Ca1PERS
2. Ordinancel,Authorizing,Ah Amendment to the Contract.
3. Ca1PERS Employer Contribution Rate Information- Fire members.
4. Ca1PERS Employer Contribution Rate Information - Police members.
3
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Attachment 1
•
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES'RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF PETALUMA
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;jn-the procedures to amend this contract is the adoption by
the governing body of the public agency of a resolution giving notice of its
intentionsto 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:
To provide Section 20475 (Different Level of Benefits).
Section 21363.1 (3% @ 55 Full formula)and Section 20037
(Three-Year Final Compensation)are applicable to local
safety:members entering membership for the first time in
the safety classification after the effective date of this
amendment to contract.
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.
By:
Presiding Officer
Title
Date':adopted land approved
(Ah endmen[)-
CON-302(Rev.4/96)
Ate
Ca1PERS
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 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 reffective.August 1,
1959, November 1, 19.59; 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 and October 7, 2008 which provides for participation
of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective October 7, 2008, and hereby replaced by the following paragraphs
numbered 1 through 14 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 local miscellaneous members; age 50 for local safety
members entering membership in the safety classification on or prior to
the effective date of this amendment to contract and age 55, for local
Safety members entering membership for the first time in the safety
classification after the effective date of this amendment to contract.
5
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 gency agrees to indemnify,-defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, thetCalPERS 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 attorneys fees
that may arise,,as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions orformulas 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) Public Agency's election to amend this Contract to provide
retirement:benefits, provisions orformulas that are different than
existing retirementbenefits,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.
(d) Public Agency's election to file for bankruptcy under Chapter 9
:(commencing=with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CaIPERS Board of Administration pursuant to
'section 365, of Title 11, of the United States Bankruptcy Code
or any similar`provision of law.
(e) Public Agency's election to assign this Contract without:.the prior
written consent of the CaIPERS"'Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the'California Constitution.
4. Employees of Public Agency in the following classes shall become
mernbe'rsof said Retirement System except such in each such class as
are excluded by off 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).
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 local miscellaneous member 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 'prior and current service, as a local safety member entering
membership in the safety classification on or prior to the effective date of
this amendment to shall be determined in accordance with
Section'21362.2 of said Retirement Law (3% at age 50 Full).
8.. The 'percentage of final compensation to be provided for each year of
credited.current service as a.local safety'Member entering membership for
the first time in the safety classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
•
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9. 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 local
miscellaneous-members and those local safety members entering
membership on or prior to the effective date of this amendment to
contract.
c. Section 20965 (Credit for Unused Sick Leave).
d. Section '21.326 (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:
i. 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 local safety members entering
membership for the first .tune; in the safety classification after the
effective date of this amendment to contract.
•
S
10. 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.
11. 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.
12. 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 tcontract 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-requited by law.
13. 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.
q
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14. 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
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS,ID#5476407298
PERS-CON-702A
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Attachment 2
•
EFFECTIVE:DATE ORDINANCE NO. _ N;C;S.
OF ORDINANCE
1 Introduced by Seconded by
2
3
4
5
6
7
8 AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF PETALUMA
9 AND BOARD OF ADMINISTRATION OF THECALIFORNIAPUBLIC`EMPLOYEES'
I 10 ' RETIREMENT SYSTEM,TO PROVIDE THE,3%@55_FULL FORMULA AND
' 11 THREE-YEAR FINAL COMPENSATION TO CITY OF PETALUMA LOCAL SAFETY MEMBERS
12 ENTERING MEMBERSHIP FOR,THE FIRST TIME IN THE SAFETY CLASSIFICATION
13 AFTER THEEFFECTIVE DATE OF THIS AMENDMENT TO CONTRACT.
14
15 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS:
16
17 Section 1. An amendment to thetontract between the City of•Petaluma and the Board of
18 Administration, California'Public Employees' Retirement System is.hereby authorized, a copy of
19 said amendment being attached hereto, marked Exhibit A, and by such reference made a part
•20 hereof as though herein set out in full.
21
22 Section 2. The Mayor of the City Council is hereby authorized and directed to execute said
23 amendment for and on behalf of the City of Petaluma.
24
l 25 Section 3. Severability. The ptovisions of this Ordinance are severable and if-any provision,
' 26 I clause, sentence,word or part thereof is held'illegal, invalid, unconstitutional, or inapplicable to
27 any person or circumstances;such illegality, invalidity, unconstitutionality, or inapplicability shall
28 not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts
29 thereof of this Ordinance or their applicability to other persons-or circumstances.
30
31 Section 4. Effective:Date. This Ordinance of-the City of Petaluma shall be effective thirty (30)
32 days after the date of its passage.
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' 34 Section 5: Publication. The City Clerk is hereby directed to post and/or publish,this ordinance or
35 a synopsisof this ordinance for the period and in the manner required by the City Charter.
36
37 I HEREBY CERTIFY that this ordinance was INTRODUCED at,a regular meeting of the City Council
38 of the'City of Petaluma,.held on the 241h day of September;2012 and ADOPTED AND PASSED at a
39 regular meeting of the City Council of the City of Petaluma, held on the day of October,
40 2012 by the following vote:
41
42 AYES:
43
44 NOES: •
Ordinance No. N.C.S. Page 1
1
2 ABSENT:
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11 David Glass, Mayor
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15 ATTEST: APPROVED AS TO FORM:
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22 Claire Cooper, CMC, City Clerk Eric W. Danly, City Attorney
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Ordinance No. N.C.S. Page 2
E diibit A
•
ills.,
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, June30, 1996, May 4, 1998, April 5, 1999,
June 30, 2001, January 16, 2003 and October 7, 2008 which 'provides for participation
of Public Agency in said System,Board and Public Agency hereby agree,as follows:
A. Paragraphs 1 through, 12 are hereby stricken from, said contract as executed
effective October'7, 2008, and hereby replaced by'the following paragraphs
numbered 1 through 14 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 local miscellaneous members; age 50 for local safety
members entering membership in the safety classification on or prior to
the effective date of this amendment to contract and :age 55 for local
safety members entering membership for the first time in the safety
classification after the effective date of this amendment to contract.
i3
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,(CalPERS) and its
trustees, agentsand,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 attorneys 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-CalPERS retirement program.
(b) Public Agency's election to•amend this Contract to provide
retirement benefits, provisions or formulas that are different than
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 benefitsvprovisions or
formulas provided under'this.Contract'and provided for under
the California Public Employees'Retirement Law.
(d) Public;Agency's election to file:for bankruptcy under Chapter 9
(commencing with section,901)of Title 11 of the United States
Bankruptcy Code`and/or Public Agency's election to reject this
Contract with the CaIPERS Board of Administration pursuant to
section 365, of Title 11, of the United States'Bankruptcy Code
orally similar provision of law. •
(e) Public Agency's election to-assign this Contract.without the prior
written consent of the CaIPERS' Board of Administration.
IA
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made,as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
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 aslocal 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. The percentage of final compensation to be provided for each year of
credited prior and current service as a local`miscellaneous member 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 prior and current service as a local safety member entering
membership in:the safety classification on or prior to the effective date of
this amendment to contract shall be determined in accordance with
Section 21362.2 of said Retirement Law (3% at age 50 Full).
8. The percentage of final compensation to be provided for each year of
credited current'service as a local safety member entering,membership for
the first time in the safety classification after the effective, date of this
amendment to contract shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
I5
•
9. 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 local
Miscellaneous members and those local safety members entering
membership on or prior to the effective date of this amendment to
contract.
c.' Section20965'(Credit for Unused Sick Leave).
d. Section. 21.326 (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 Creditas Public Service).
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safetymembers only:
h. Section '21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
i. Section 20434 ("Local Fire Fighter" shall include any officer or
employee o?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 local safety members entering
membership for the first time in the safety classification after the
effective date of this amendment to contract.
I Le
10. Public Agency, in accordance with Government Code Section 2079q,
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:
11. 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,Systeni.
12. 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 it's 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 bf'Public Agency, and costs of
the'periodic investigation and valuations required,by
13. 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.
•
11
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14. 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 maybe 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
KAREN DE FRANK, CHIEF PRESIDING'OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS ID#5476407298
PERS-CON-702A
18
Attachment 3
California Public Employees' Retirement System
Actuarial Office
•
Lurch P.O. Box to, CA
Sacramento, CA 95812-1494
TTY: (877)249-74'42
CMPERS (888)225-7377 phone• (916) 795-2744 fax
www:calpers.ca.gov
December 20,2011
CALPERS ID: 5476407298
Employer Name:'CITY OF PETALUMA
Rate Plan: SAFETY PLAN
Re: New 3%@55,Three Year Final'Compensatlon forFiremembers only Second Tier within a Non-pooled Plan
(Section 20475: Different Level of Benefits Provided for New.Employees)
Dear Requester:
As requested,employer contribution rate Information on your proposed second tier follows.
If you are aware of others interested in this information(i.e.payroll staff,county court employees,
port districts,etc.),please inform them.
The Information istaased on the most recent annual valuation and is good until the completion of the next annual
valuation,that is,the annual valuation as'of June 30, 2011, If your agency has not taken action to amend its
contract and we have already completedthe June 30,2011 annual valuation report,-you must contact the
Retirement Contract Services Unit for an updated cost analysis.
If the employee contribution rate changes,that change would take place immediately. There will be no
Immediate employer contributionxate impact from this,amendment. Ultimately, though,your employer normal cost
will decrease. If the mix of active member entry ages were the same for both the current continuing first tier
employees and the new second tier employees,the decrease in the employer rate would be 1.3%.
The employer rate reduction'wiil:occur gradually,beginning.on July 1, 2014, if there aresecond tier employees hired
on or before June 30, 2012. For fiscal years 2014/2015 and beyond,,-the projected annual amount of rate reduction
you can expect from introducing a,second tier is approximatelyequal to(the ratio of:your second tier annual payroll
to your total plan annual payroll two and a half years earlier: For example.if 1/10.of your Safety Plan members were
In second tier on June 30,.2012 andlthe'l ultimate expected normal cost decrease'was 1.3%, the cumulative rate
reduction you can expect by the 2014/2015 fiscal year,would.be 1/10 x 13%.= 0.13%.
To initiate an amendment to the contract, please follow the Contract Amendment_Request process on.Myca1PERS
with our Retirement Contract Services Unit, indicating your wish to contract,for Section 20475 (Different Level of
Benefits)and identifying the group(s)to which the benefit reduction applies.
In sections 20463 (b)and (c), the California Public Employees' Retirement Law requires the governing body of a
public agency.within five days,:of receipt of the contract amendment:cost analysis, to provide each employee
organization with a copy of the analysis. If this cost analysis was requested by an employee organization, the
employee organlzation'is also required within five days of receipt of the analysis,to provide a copy of the analysis to
the public agency.
If you have questions,please call (888)CaIPERS(225-7377).
elt)064
BARBARA').WARE,FSA, MW
Enrolled Actuary
Senior Pension Actuary,Ca1PERS
California Public Employee's Retirement System
www.calpers:ca:gov
i et
Attachment 4
•
California Public'Employees' Retirement System
Actuarial Office •
At,`,` P.O. Box 942709
A\\ I Sacramento,CA.95812-1494
TTY: (877)249-7442
Ca1PERS (888)225-7377 phone.' (916)795-2744 fax
www.calpers.ca:gov
•
December 20,2011
CALPERS ID::5476407298
Employer Name:CITY OF PETALUMA
Rate Plan: SAFETY PLAN
Re: New 3%@55,and Three=Year Final Compensation for.Police members only Second Tier within a Non-pooled Plan
(Section 20475: Different Level of Benefits Provided for New Employees)
Dear Requestor:
As requested,employer contribution rate information on your proposed second tier follows.
If you are aware of others interested in this information(i.e.payroll staff,county court employees,
port districts,etc.),;please inform them.
The information is based on.the,most recent annual valuation.and;ls'good until the completion of the next annual
valuation, that is,the,annual valuation as of June 30,2011. If your agency,has not taken action to amend its
contract and we have already completed the June 30, 2011 annual valuation report,you must contact the
Retirement Contract Services Unit for an updated cost analysis.
If the employee contribution rate changes,that change would take place immediately. There will be no
immediate employer contribution.rate impact from this amendment. Ultimately,though,your employer normal cost
will decrease, If the mix of active member,entry ages were the same for both the current continuing first tier
employees and the new-second tier employees,the decrease in the employerrateviould be 1.8%.
The employer rate reduction.will occur,gradually,beginning on July 1, 2014, if thereare second tier employees hired
on or before June 30, 201/ For fiscal years 2014/2015 and beyond, the,projected annual amount of rate reduction
you can expect from introducing a,second tier isiapproximately equal to the ratio of your second tier annual payroll
to your total plan annual.payrolltwo and a half years earlier. For exampleIf.1/10 of yourSafety Plan members were
in second tier on June 30, 2012 and the ultimate expected`normal cost decrease was 1.8%, the cumulative rate
reduction you can expect by 2014/2015 fiscal year would be;t/10x 1.8%=0.18%.
To initiate an amendment'to the contract, please follow the Contract Amendment Request process on MyCaIPERS
with our Retirement Contract Services Unit,indicating your wish to contract for Section 20475 (Different Level of
Benefits)and Identifying the group(s).to;which the benefit reduction applies.
In sections.20463 (b) and (c), the California Public Employees' Retirement Law'requires the governing body of a
public agency within five days of receipt of the contract:amendment cost analysis, to provide each employee
organization with a copy of the analysis. If this cost analysis was requested by an employee organization, the
employee'organization Is also required within five days of receipt of the analysis, to provide,a copy of the analysis to
the.publ is agency.
If you have'questions,please call(888)CalPERS(225-7377).
•
•
BARBARA J.WARE,FSA,MW
Enrolled Actuary;
Senior Pension:Actuary,CalPERS
California Public Employee's Retirement System
www.calpers.ca.gov
2v