CC 2012-11-13_08.b. Supplemental Information i
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1'O: CITY COUNCIL �I
FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICES
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SUBJECT: SUPPLEMENTAL INFORMATION — AGENDA ITEM 8.b.
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CONSIDERATION OF MODIFICATION TO CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM (CALPERS) CONTRACT FOR
THE LOCAL MISCELLANEOUS MEMEBERS
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DATE: NOVEMBER 9, 2012
Attached is the Resolution of Intention received today from CALPERS regarding Item
8.b. of the November 13, 2012 agenda.
c: City Attorney
City Clerk �
Public Review Binder
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RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT '
BETWEEN THE I
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BOARD OF ADMINISTRATION �
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM �
AND THE '
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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 �aw; 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 20475 (Different Level of Benefits).
Section 21354 (2% @ 55 Modified 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. li
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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. i
By: ,
Presiding Officer
Title
Date adopted and approved '
(Amendment)
CON-302(Rev.4/96)
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CaIPERS i
EXHIBIT '
California
Public Employees' Retirement System
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�S�lENDMENT TO CONTRACT �
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Between the
Board of Administration
California Public Employees' Retirement System i
and the �
City Council
City of Arroyo Grande
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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 and December 9, 2011 which provides for i
participation of Public Agency in said System, Board and Public Agency hereby agree ;�
as follows: '�
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed �
effective December 9, 2011, and hereby replaced by the following paragraphs �
numbered 1 through 17 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 police members ;
entering membership in the police classification on or prior to December 9, '
2011, age 55 for local fire members and for those local police members '
entering membership for the first time in the police classification after I
December 9, 2011.
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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 I
contracting agency and are not provided for herein and to all amendments
to said Law hereafter enacted except those, which by express provisions i
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, I
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 j
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. '
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(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law. '
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(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 i
the California Constitution.
4. Employees of Public Agency in the following classes shall become I
members of said Retirement System except such in each such class as
are excluded by law or this agreement: '
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a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members); �
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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:
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 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 local miscellaneous member in ,
employment on or after June 27, 2008 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 21354.4 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 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 21354 of said Retirement Law subject to the '
reduction provided therein for Federal Social Security (2% at age 55 ',
Modified).
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9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local fire member shall be '
determined in accordance with Section 21363.1 of said Retirement �aw i
subject to the reduction provided therein for Federal Social Security (3% at �I
age 55 Modified). '
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10. The percentage of final compensation to be provided for each year of ',
credited prior and current service as a 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). i
11. The percentage of final compensation to be provided for each year of i
credited current service as a 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). �
12. 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). !
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c. Section 21024 (Military Service Credit as Public Service). �
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d. Section 21027 (Military Service Credit for Retired Persons). '
e. Section 20042 (One-Year Final Compensation) for local fire �
members and those local police members entering membership on
or prior to December 9, 2011 and local miscellaneous members '
entering membership on or prior to the effective date of this '
amendment to contract. �
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. ;
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h. Section 20475 (Different Level of Benefits). Section 21363.1 (3% '
@ 55 Modified formula) and Section 20037 (Three-Year Final �
Compensation) are applicable to 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 local '
miscellaneous members entering membership for the first time in ',
the miscellaneous classification after the effective date of this
amendment to contract.
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13. Public Agency, in accordance with Government Code Section 20790, i
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.
14. 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.
15. Public Agency shall also contribute to said Retirement System as follows: �
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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. ',
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16. 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.
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17. 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 ,
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BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ARROYO GRANDE
BY BY
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
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AMENDMENT CaIPERS ID#6540026274 '
PERS-CON-702A
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CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709 '
Sacramento, CA 94229-2709
(888) CaIPERS (225-7377)
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CERTIFICATION OF GOVERNING BODY'S ACTION
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I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the �
of the
(governing body)
(public agency)
on
(date)
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Clerk/Secretary I
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Title '
PERS-CON-12(rev. 1/96) '
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CALIFORNIA PUBLIC EMPLOYEE�' RETIREMENT SY�TEM '
Actuarial and Employer Services Branch '
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709 ,
(888) CaIPERS (225-7377) I,
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CERTIFICATION OF COMPLIANCE WITH '
GOVERNMENT CODE SECTION 7507 �
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I hereby certify that in accordance with Section 7507 of the Government Code
the future annual costs as determined by the System Actuary for the
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increase/change in retirement benefit(s) have been made public at a public meeting
of the
of the
(governing body)
(public agency)
on which is at least two weeks prior to the adoption of the i
(date)
Resolution / Ordinance. �
Adoption of the retirement benefit increase/change will not be placed on the consent ,
calendar. '
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Clerk/Secretary �
Title
Date
PERS-CON-12A(rev. 1/96) '