CC - 2011-57 - Contract Amendment to CalPers Retirement for Lifeguards, Swim Instructors and Recreational LeadersQi
Resolution No. 2011 -57
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 ROSEMEAD
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 for the exclusions of Lifeguard -Swim Instructor,
Lifeguard and Recreation Leader hired on or after the
effective date of this amendment to contract.
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.
By:
PresidKg Officer
N a
Title
nom- er ZS 2611
Date adopted and approved
(Amendment)
CON -302 (Rev. 4/96)
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 Rosemead
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
October 12, 1992, and witnessed September 8, 1992, and as amended effective April 9,
1993, July 27, 1998, November 5, 2007, April 24, 2009 and December 13, 2010 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 December 13, 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.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after October 12, 1992 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.
PLEAUE CO NOT `N
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 parry 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.
(f) 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 formulas 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;
b. "PLANNING AND TRAFFIC COMMISSION ";
C. ADMINISTRATIVE INTERNS HIRED ON OR AFTER APRIL 24,
2009; AND
d. LIFEGUARD -SWIM INSTRUCTOR, LIFEGUARD AND
RECREATION LEADER HIRED ON OR AFTER THE EFFECTIVE
DATE OF THIS AMENDMENT TO CONTRACT.
6. Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System and applied against the liability for prior service
incurred thereunder.
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 before and not on or after November 5, 2007 shall be
determined in accordance with Section 21354 of said Retirement Law (2%
at age 55 Supplemental to Federal Social Security).
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 November 5, 2007 and not entering membership
for the first time in the miscellaneous classification after December 13,
2010 shall be determined in accordance with Section 21354.5 of said
Retirement Law (2.7% at age 55 Supplemental to Federal Social
Security).
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
December 13, 2010 shall be
determined
in accordance with
Section
21354 of said Retirement Law
(2% at
age 55 Supplemental to
Federal
Social Security).
I 0
LEASE V li0l VI�Id Lil: :. Li:i!
10. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20938 (Limit Prior Service to Members Employed on
Contract Date).
b. Section 21536 (Local System Service Credit Included in Basic
Death Benefit).
C. Section 21031 (Public Service Credit for Limited Prior Service).
d. Section 21024 (Military Service Credit as Public Service).
e. Section 20042 (One -Year Final Compensation).
f. Section 20475 (Different Level of Benefits). Section 21354 (2% @
55 Supplemental formula) is applicable to local miscellaneous
members entering membership for the first time in the
miscellaneous classification after December 13, 2010.
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 of said Retirement System.
12. 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.
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.
1
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 shall be effective on the
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
DARRYL WAT - Q'IV, HIEF
CUSTOMER ACCOPIT�;fRVICES DIVISION
PUBLIC EMPLOYEES' RLTI XMENT SYSTEM
day of
CITY COUNCIL
CITY OF ROSEMEAD
NG OFFICER
Witness Date <`
s
Attest: �t
Clerk
AMENDMENT CaIPERS ID #3461671991
PERS- CON -702A
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the foregoing
Resolution No. 2011 -57 being:
A RESOLUTION OF INTENTION TO APPROVE AN AMENDEMENT TO CONTRACT BETWEEN
THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM AND THE CITY COUNCIL OF CITY OF ROSEMEAD
was duly and regularly approved and adopted by the Rosemead City Council on the 25th of
October, 2011, by the following vote to wit:
Yes: Alarcon, Armenta, Clark, Low, Ly
No: None
Abstain:None
Absent: None
Gloria Molleda
City Clerk
'• AD CITY CO UNCIL
C IV I C:P R IQEi�
m, 1
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: JEFF ALLRED, CITY MANAGER
DATE: OCTOBER 25, 2011
SUBJECT: ADOPTION OF CALPERS RESOLUTION OF INTENTION TO EXCLUDE
LIFEGUARD -SWIMG INSTRUCTORS, LIFEGUARDS AND
RECREATION LEADERS FROM CALPERS MEMBERSHIP
SUMMARY
The City's current contract with CaIPERS requires that all team members, except
Administrative Interns, who work 1,000 hours or more in a fiscal year to be.enrolled into
CalPERS for the remainder of their employment with the City. Staff has been working
with CalPERS and has made the determination that the positions of Lifeguard -Swim
Instructor, Lifeguard, and Recreation Leader could be categorically exempt from
CalPERS membership due to the temporary nature of their position along with other
factors. Staff has received authorization from CalPERS to move forward with this
request and is brining before the City Council a Resolution of Intention to amend the
contract with CaIPERS.
Recommendation:
Staff recommends that the City Council adopt the Resolution of Intention to amend the
contract with CaIPERS (Attachment A).
d
BACKGROUND /ANALYSIS
City staff has been evaluating ways to improve our recreation program while being
mindful of reducing costs. One obstacle that staff has faced is the limited number of
hours that recreation staff can currently work while employed by the City. Our current
contract with CalPERS requires that any team member, except for Administrative
Interns, who works more than 1,000 hours in a fiscal year to be enrolled in CalPERS for
membership. Since enrollment in CalPERS increases the City's overhead costs by
roughly 35 %, we have worked diligently to ensure this does not happen.
In discussing options with CalPERS staff, it was determined that due to the nature of the
certain part-time positions being temporary in nature; we could exempt them from
CalPERS membership. City staff sent a Request for Determination letter (Attachment
B) to CalPERS on May 19, 2011 in order to seek formal approval from CalPERS for the
exemption of the positions of Recreation Leader, Senior Recreation Leader, part-time
Recreation Coordinator, Lifeguard and Lifeguard -Swim Instructor. Subsequently,
ITEM NO. _Df�
City Council Meeting
October 25, 2011
Page 2 of 2
CaIPERS sent a letter on July 8, 2011 (Attachment C) approving the City's request to
exclude the positions of Recreation Leader, Lifeguard and Lifeguard -Swim Instructor.
CalPERS made the determination that the other positions requested did not meet the
qualifications for exemption.
In order to amend the CalPERS contract, the City is first required to adopt a Resolution
of Intention to approve an amendment to the contract. Once this Resolution of Intention
is approved the City will be required to adoptlan ordinance regarding the contract
amendment. The ordinance cannot be approved for at least twenty days following the
adoption of the Resolution of Intention; therefore staff will bring the ordinance to the City
Council in December.
Prepared by:
.W 4;. r _�/ ��