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HomeMy WebLinkAbout11-06 CC Ordinance ORDINANCE NO. 11-06 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF TEMECULA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. That an amendment to the contract between the City Council of the City of Temecula and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made apart hereof as though herein set out in full. Section 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. Section 3. This Ordinance shall take effect at least 30 days after the date of its adoption and prior to the expiration of 30 days from the passage thereof shall be published at least once in the North County Times — The Californian and thenceforth and thereafter the same shall be in full force and effect. Section 4. The City Clerk shall certify to the adoption of this Ordinance. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 23� day of August, 2011. m Ron Roberts, Mayor ATTEST: , Susan W. Jon �s, MMC ity�C erk [SEAL] R:/Ords 2011/Ords 11-06 1 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 11-06 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 26 day of July, 2011, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 23� day of August, 2011, the following vote: AYES; 4 COUNCIL MEMBERS: Edwards, Naggar, Washington, Roberts NOES: 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Comerchero ABSTAIN: 0 COUNCIL MEMBERS: None Susa W. Jones, MMC City Clerk R:/Ords 20111Ords 11-06 2 � li.,, � CaIPERS California Public Employees' Retirement System �` AMEI�TDMENT TO CONTRACT Between the Board of Administration Califoraia Public Employees' Retirement System and the City Couacil City of Temecula ♦ 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 December 1, 1990, and witnessed November 8, 1990, and as amended effective October 25, 1997, August 24, 2002, July 10, 2004, April 24, 2009 and June 19, 2010 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective June 19, 2010, 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 entering membership in the miscellaneous classification on or prior to the effective date of this amendment to contract and age 60 for local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 2. Public Agency shall pa�ticipate 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 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-CaIPERS 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 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. (fl 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 formufas 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. 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. 6. The percentage of final compensation to be provided for each year of credited prior and current service as a 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 finaf compensation to be provided for each year of credited prior and current service as a 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). 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment on or after June 19, 2010 and not entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract 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 local miscellaneous member entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 10. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20042 (One-Year Final Compensation) for those local miscellaneous members entering membership on or prior to the effective date of this amendment to contract. 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 local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 11. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future serrice liability with respect to local miscellaneous members of said Retirement System. 12. Pubfic 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 term 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 empfoyees of Public Agency, not incfuding 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. 13. Contributions required of Public Agency and its empfoyees 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. 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 shal! be effective on the �`t day ___ ___ _. BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF TEMECU�A BY --- BY — - LORI MCGARTLAND, CHIEF PRESIDING OFFICER EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk AMENDMENT ER# 1522 PERS-CON-702A