CC - Item 4E - CalPERS Contract Amendment UpdateCaIPERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement
and the
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 and July 27, 1998 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective July 27, 1998, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
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.
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.
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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 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 (2% at age 55 supplemental to Federal
Social Security).
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 the effective date of this amendment to contract
shall be determined in accordance with Section 21354.5 of said
Retirement Law (2.7% at age 55 supplemental to Federal Social Security).
8. 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).
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9. 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.
10. 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.
11. 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.
12. 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 ROSEMEAD
BY
LORI MCGARTLAND, CHIEF PRESIDING OFFICER
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
rti.
Witness'Date
Attest:
Clerk
AMENDMENT ER# 1595
PERS-CON-702A (Rev. 10105)
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER C. CHI, CITY MANAGER oa-CA-~
DATE: SEPTEMBER 11, 2007
SUBJECT: CALPERS CONTRACT AMENDMENT UPDATE
SUMMARY
On June 12, 2007, the City Council voted to approve a modified benefits package for employees.
Based on direction given at that meeting, staff has been coordinating with CalPERS to finalize the
implementation of the 2.7% @ 55 pension formula with the one-year final compensation calculation
for miscellaneous employees.
On August 14, 2007, the City Council approved the Resolution of Intent to initiate this change with
CaIPERS. Now, in order to finalize the process, the City Council must approve an ordinance to
formalize the City's intention of amending our contract (Attachment A).
Staff Recommendation
Staff recommends that the City Council waive further reading and introduce Ordinance No. 856
(Attachment A), amending the City's contract with CalPERS.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Attachment A: Ordinance No. 856
APPROVED FOR CITY COUNCIL AGENDA: O.
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ORDINANCE NO. 856
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA. AUTHORIZING AN AMNDMENT TO
THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF
ROSEMEAD AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
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 procedure to amend this contract is the adoption by the
governing board of the public agency of an ordinance which formalizes its
intention to approve an amendment to said contract, and
WHEREAS, the following is a statement of the proposed change:
To provide Section 21354.5 (2.7%@55 Supplemental formula) and
Section 20042 (One-Year Final Compensation) for local miscellaneous
members.
NOW, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS
FOLLOWS:
SECTION 1.
That 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 is hereby
authorized.
SECTION 2.
That a copy of the 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 is
attached as an Exhibit.
PASSED AND ADOPTED this day of September, 2007.
John Tran
Mayor
ATTEST:
Nina Castruita
City Clerk