R 4759 RESOLUTION NO. 4759
A 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 ARROYO GRANDE
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 2% for classic local police members and .5% for new local
police members in the Arroyo Grande Police Officers'
Association.
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.
On motion of Council Member Barneich, seconded by Council Member Brown, and on
the following roll call vote, to wit:
AYES: Council Members Barneich, Brown, Guthrie, Harmon, and Mayor Hill
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 27th day of September, 2016.
RESOLUTION NO. 1751
PAGE 2
.
JI HILL, MAYOR
ATTEST:
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KELLY WET lie RE, CITY CLERK
A'PRO ' • O CONTENT:
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•BERT McFAW ERIM CITY MANAGER
APPROVED AS TO FORM:
ATHER WHITHAM, CITY ATTORNEY
•
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 Arroyo Grande
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 July
10, 1964, and witnessed June 16, 1964, and as amended effective September 16,
1966, May 24, 1973, July 4, 1980, June 24, 1988, February 12, 1999, October 15, 1999,
September 28, 2000, January 4, 2002, July 2, 2004, December 31, 2004, June 30,
2006, June 27, 2008, June 26, 2009, December 9, 2011 and December 21, 2012 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 December 21, 2012, and hereby replaced by the following paragraphs
numbered 1 through 19 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, age•62 for new local
miscellaneous members, age 50 for classic local police members entering
membership in the police classification on or prior to December 9, 2011,
age 55 for classic local fire members and for those classic local_police
members entering membership for the first time in the police classification
after December 9, 2011 and age 57 for new local safety members.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 10, 1964 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 ariy 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 1
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).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. EMPLOYEES COMPENSATED ON AN HOURLY BASIS; AND
b. ELECTED OFFICIALS.
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 June 27, 2008 shall be
determined in accordance with Section 21354 of said Retirement Law
subject to the reduction provided therein for Federal Social Security (2% at
age 55 Modified and 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 June 27, 2008 and not entering membership for
the first time in the miscellaneous classification after December 21, 2012
shall be determined in accordance with Section 21354.4 of said
Retirement Law subject to the reduction provided therein for Federal
Social Security (2.5% at age 55 Modified and Full).
8. 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
December 21, 2012 shall be determined in accordance with Section
21354 of said Retirement Law subject to the reduction provided therein for
Federal Social Security (2% at age 55 Modified).
9. 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 Supplemental to Federal Social Security).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local fire member shall be
determined in accordance with Section 21363.1 of said Retirement Law
subject to the reduction provided therein for Federal Social Security (3% at
age 55 Modified).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local police member
entering membership in the police classification on or prior to December 9,
2011 shall be determined in accordance with Section 21362.2 of said
Retirement Law subject to the reduction provided therein for Federal
Social Security (3% at age 50 Modified).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
12. The percentage of final compensation to be provided for each year of
credited current service as a classic local police member entering
membership for the first time in the police classification after December 9,
2011 shall be determined in accordance with Section 21363.1 of said
Retirement Law subject to the reduction provided therein for Federal
Social Security (3% at age 55 Modified).
13. 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 Supplemental to Federal Social Security).
14. 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 20965 (Credit for Unused Sick Leave).
c. Section 21024 (Military Service Credit as Public Service).
d. Section 21027 (Military Service Credit for Retired Persons).
e. Section 20042 (One-Year Final Compensation) for classic local fire
members and those classic local police members entering
membership on or prior to December 9, 2011 and classic local
miscellaneous members entering membership on or prior to
December 21, 2012.
f. Section 21548 (Pre-Retirement Option 2W Death Benefit) for local
miscellaneous members only.
g. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
h. Section 20475 (Different Level of Benefits). Section 21363.1 (3%
@ 55 Modified formula) and Section 20037 (Three-Year Final
Compensation) are applicable to classic local police members
entering membership for the first time in the police classification
after December 9, 2011.
Section 21354.4 (2% @ 55 Modified formula) and Section 20037
(Three-Year Final Compensation) are applicable to classic local
miscellaneous members entering membership for the first time in
the miscellaneous classification after December 21, 2012.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
i. Section 20516 (Employees Sharing Additional Cost):
From and after the effective date of this amendment to contract, 2%
for classic local police members and .5% for new local police
members in the Arroyo Grande Police Officers Association.
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.
15. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
July 4, 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.
16. 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.
17. Public Agency shall also contribute to said Retirement System as follows:
a. 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.
b. 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.
18. 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.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
19. 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 ARROYO GRANDE
BY BY
CHERYL EASON PRESID FFICER
CHIEF FINANCIAL OFFICER .` .�
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CY��
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�� Witness Date -\S`
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Clerk <,(53J
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AMENDMENT CaIPERS ID#6540026274
PERS-CON-702A
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4759 was passed and adopted at a regular meeting of the City Council
of the City-of Arroyo Grande on the 27th day of September, 2016.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 28th day of
September, 2016.
` / t(-6,
KELLY ETM/IRE, CITY CLERK