CC – Item 3C – Staff Report – Adoption of Ordinance No. 786 Authorizing and Amendment to the Contract Between BOA and Public Employee Retirement S E M\E
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGE
DATE: JUNE 15, 1998
RE: ADOPTION OF ORDINANCE NO. 786 AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEE RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF ROSEMEAD FOR 2% @ 55 FULL FORMULA
AND MILITARY SERVICE CREDIT
Ordinance No. 786 was introduced at the Council Meeting of May 26, 1998. Upon adoption of
this Ordinance the new rates will be effective the first payroll in August.
Attached is a copy of Ordinance No. 786, which includes the new contract as Exhibit A, a copy
of the current contract with PERS and revised annual cost figures which reflect the 1998-99
Budget.
RECOMMENDATION
It is recommended that the Rosemead City Council adopt Ordinance No. 786 Authorizing an
Amendment to the Contract Between the Board of Administration of the Public Employee
Retirement System and the City of Rosemead for 2% @ 55 Full Formula and Military Service
Credit.
COUNCIL AGENDA
muffpmmno98
JUN 231998
ITEM No. ._ __ _ --
K
CK 2
ORDINANCE NO. 786
AN ORDINANCE OF THE CITY COUNCILOF THE
CITY OF ROSEMEAD AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF ROSEMEAD
AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS
FOLLOWS:
Section I. That an amendment to the contract between the City Council of the City of
Rosemead and the Board of Administration, California Public Employees' Retirement System
is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit "A".
and by such reference made a part hereof as though set herein set out in full.
Section 2. The Mayor of the City of Rosemead is hereby authorized, empowered, and
directed to execute said amendment for and on behalf of said City.
Section 3. This Ordinance shall take effect thirty (30) days after the date of its
adoption.
Section 4. The City Clerk shall certify to the adoption of this Ordinance and shall cause
the same to be published in accordance with state law.
PASSED, APPROVED and ADOPTED this 23rd day of June, 1998.
MAYOR
ATTEST:
CITY CLERK
EXHIBIT A
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF ROSEMEAD
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contact effective October 12, 1992, and witnessed September 8, 1992, and
as amended effective April 9, 1993 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 11 are hereby stricken from said contract as executed effective
April 9, 1993, and hereby replaced by the following paragraphs numbered 1 through 11
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.
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. Employees other than local safety members (herein referred to as local
miscellaneous members).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. SAFETY EMPLOYEES; AND
b. "PLANNING AND TRAFFIC COMMISSION".
5. 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.
6. The percentage of final compensation to be provided for each year of credited
prior and current service as a local miscellaneous member shall be determined in
accordance with Section 21354 of said Retirement Law (2% at age 55),
supplemental to Federal Social Security.
7. 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), Statutes of
1976.
8. 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.
9. 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.
10. 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.
11. 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 , 19
BOARD OF ADMINISTRATION � CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENF. STEM OF THE
� CITY OF ROSEMEAD -
ate .
BY BY ��-�
KENNETH W. MARZION, CF PRESIDING OFFICER
ACTUARIAL &EMPLOYSSERVICES DIVISION C _
PUBLIC EMPLOYEES' TIREMENT SYSTEM
.
r
QQ Witness Date r.
Attest:
;'
Clerk
AMENDMENT
PERS-CON-702A(Rcv.E\96)
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF ROSEMEAD
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective October 12, 1992, and witnessed September 8, 1992,
which provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
A. Paragraphs I through 11 are hereby stricken from said contract as executed effective
October 12, 1992, and hereby replaced by the following paragraphs numbered 1 through
11 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 60 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.
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. 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. SAFETY EMPLOYEES; AND
b. "PLANNING AND TRAFFIC COMMISSION".
5. 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.
6. The percentage of final compensation to be provided for each year of credited
prior and current service as a local miscellaneous member shall be determined in
accordance with Section 21251.13 of said Retirement Law (2% at age 60),
supplemental to Federal Social Security.
7. Public Agency elected to be subject to the following optional provisions:
a. Section 20835.1 (Limit Prior Service to Members Employed on Contract
Date).
b. Section 21361.5 (Local System Service Credit Included in Basic Death
Benefit).
c. Section 20930.90 (Public Service Credit for Excluded or Limited Prior
Service).
8. 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.
9. 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.
10. 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.
11. 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.
en
B. This endment shall be effective on the '7-i ('day of
19 intep
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE
CITY OF ROSEMEAD
_ 4
BY _ ✓1 _.� J at BY ri/C 1.f"---✓"-T -�i✓.�✓
C IEF, CON ' • CT SERVICES D'tiISION Presidingibfficer
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
2./C - 93
Witness Date
Atte/
Cl
PERS-CON-702 (AMENDMENT)
(Rev. 10/92)
CITY OF ROSEMEAD
PERS CALCULATION: 2% @ 55 YEARS*
"REFLECTS COLA (3.0%) AND MERIT (5.0%)"
JULY 1, 1998 PROPOSED
RATE RATE
(2% @ 60) (2% @ 55)
(A) ANNUAL PAYROLL $1,361,402.91 $1,361,402.91
(B) EMPLOYER RATE 6.774% 10.706%
(C) EMPLOYEES' CONTRIBUTION RATE 7.000% 7.000%
(D) ESTIMATE PERS COST
CALCULATION: (A) x I (B) + (C) ) $187,519.64 $241,050.00
INCREASE IN COST PER ANNUM $53,530.36
kbo:123r5w\pers55.wk4 (revised 06-18-98)