R 4075RESOLUTION .NO.4075
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 goveming 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 21354.4 (2.5% @ 55 Full .and Modified
- ~ formula) for local .miscellaneous members and Section
21362.2 (3% @ 50 Modified formula) .for local police
members.
NOW, THEREFORE, BE IT .RESOLVED that the goveming 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 Offic
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Title .
a -a~-a8 .
Date adopted and approved
(Amendment)
CON-302 (Rev. M96)
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~aIPERS ~ :.
EXHIBIT
Califomia
Public Employees' .Retirement System
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AMENDMENT TO .CONTRACT
Between the.
Board of .Administration
California Public .Employees' ~ Retirement System
and the ~ .
City Council
-City of Arroyo Grande
® .
The.. :Board of Administration, Califomia 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 and June 30,
2006 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. June 30, 2006, and hereby replaced by the following paragraphs
numbered 1 through:14 inclusive:
1. All words and terms used herein .which are defned. 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 55 for local fire
members and age 50 for local police members. . .
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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
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. 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).
4. 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.
5. 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 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 and Full).. .
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 on or 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).
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7. The percentage of final compensation to be provided for each year of
credited prior. and current~.service as a local police member shall be
determined in accordance with Section 21.362.2 of. said Retirement Law
subject to the reduction provided therein for Federal Social Security (3% at
age 50 Modifed). ~ .
8. The. percentage of final compensation to be provided for each year of
credited prior and cun'ent service as a 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).
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, 1.980.
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).
f. Section. 21548 (Pre-Retirement Option 2W Death Benefit) for local
miscellaneous members.
10. 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 Govemment.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. A reasonable amount, as axed 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.
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.
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.
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B. This amendment shall be..:effective on the day of ,~~'1•
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BOARD OF ADMINISTRATI ~° CITY COUNCIL . 1,~,-``
PUBLIC EMPLOYEES' RE~~MENT SYSTEM CITY OF ARROYO GRANDE
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BY ~ ~` BY c'.~4
LORI MCGARTLAND IEF PRESIDING OF~fiCER ~ . .
EMPLOYER SERVI DIVISION ~```'`~
PUBLIC EMPLOY ~'' RETIREMENT SYSTEM ~~~
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Attu; f
AMENDMENT ER# 0545.
PERS-CON-702A (Rev. 10105)
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. 4075 is a true, full, and correct copy of said Resolution passed and
adopted at a regular meeting of the City Council/Redevelopment Agency of the City of
Arroyo Grande on the 26th day of February 2008.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 27th day of
February 2008..
KELLY ET RE, CITY CLERK