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HomeMy WebLinkAbout17-39 CC Resolution RESOLUTION NO. 17-39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING ITS 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 TEMECULA 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: ' To provide Section 20516 (Employees Sharing Additional Cost) of 3% for classic local miscellaneous members in the Management and Confidential Employees group. 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. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27th day of June, 2017. Maryann Edwards, Mayor ATT T: R ohl, City Clerk ' [SEAL] Resos 17-39 1 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 17-39 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27"' day of June, 2017, by the following vote: AYES: 5 COUNCIL MEMBERS: Comerchero, Naggar, Rahn, Stewart, Edwards NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ' Randi Johl, City Clerk 1 Resos 17-39 2 All, 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 Temecula The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the goveming body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective December 1, 1990, and witnessed November 8, 1990, and as amended effective October 25, 1997, August 24, 2002, July 10, 2004, April 24, 2009, June 19, 2010 and September 24, 2011 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective September 24, 2011, and hereby replaced by the following paragraphs numbered 1 through 15 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 September 24, 2011, age 60 for classis local miscellaneous members entering membership for the first time in the miscellaneous classification after September 24, 2011 and age 62 for new local miscellaneous members. 1 PLEASE DO NOT SIGN "EXHIBIT ONLY" 2, Public Agency shall participate in the Public Employees' Retirement ' System from and after December 1, 1990 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. 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: ' a. SAFETY EMPLOYEES. PLEASE DO NOT SIGN "EXHIBIT ONLY" 6. The percentage of final compensation to be provided for each year of ' credited prior and current service as a classic local miscellaneous member in employment before and not on or after July 10, 2004 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 classic local miscellaneous member in employment on or after July 10, 2004 and not on or after June 19, 2010 shall be determined in accordance with Section 21354.4 of said Retirement Law (2.5% at age 55 Full). 6. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member in employment on or after June 19, 2010 and not entering membership for the first time in the miscellaneous classification after September 24, 2011 shall be determined in accordance with Section 21354.5 of said Retirement Law (2.7% at age 55 Full). 9. 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 in the miscellaneous classification after the September 24, 2011 shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 10. 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). 11. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20042 (One-Year Final Compensation) for classic local miscellaneous members entering membership. on or prior to September 24, 2011. b. Sections 21624 and 21626 (Post-Retirement Survivor Allowance). C. Section 21574 (Fourth Level of 1959 Survivor Benefits). d. Section 21024 (Military Service Credit as Public Service). e. Section 20903 (Two Years Additional Service Credit). f. Section 20475 (Different Level of Benefits): 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 September 24, 2011. PLEASE DO NOT SIGN "EXHIBIT ONLY" g. Section 20516 (Employees Sharing Additional Cost): ' From and after the effective date of this amendment to contract, 3% for classic local miscellaneous members in the Management and Confidential Employees 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 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. 12. 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 of said Retirement System. 13. 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 tern insurance rates, for survivors of all local miscellaneous members. b. 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. C. 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. 14. 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. 1 PLEASE DO NOT SIGN "EXHIBIT ONLY" 15. Contributions required of Public Agency and its employees shall be paid ' by Public Agency to the Retirement System within frftebn 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 TEMECULA BY BY .J ARNITA PAIGE, CHIEF PRESIDING OFF ' R PENSION CONTRACTS AND PREFUNDING PROGRAMS DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Q�Qwltness Date ��`V Attest: Q �O �Qf.k,_ ' AMENDMENT CaIPERS ID#4274393153 PERS-CON•702A