HomeMy WebLinkAboutResolution No. 09-7131 - Amend PERS ContractRESOLUTION NO. 09-7131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY. A
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT BETWEEN THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’
RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF DOWNEY.
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 Section
21548 (Pre-Retirement Option 2W Death Benefit) and Section 21574 (Fourth Level of 1959
Survivor Benefits) for local miscellaneous members only.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
[
SECTION 1. That the City Council 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.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution and shall
provide for appropriate distribution thereof.
APPROVED AND ADOPTED this 12th day of May
MARIO A. GUERRA, Mayor
ATTEST:
#4a&&E)#
KATHLEEN L. MIDSTOKKE, City Clerk
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 12th day of May, 2009, by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN :
Council Members: Bayer, Brossmer, Gafin, Marquez
Council Member: Mayor Guerra
Council Member: None
Council Member: None
THLEENI MIDSTOKKE, City Clerk
RESOLUTION NO. 09-7131
PAGE TWO
EXHIBIT
California
Public Employees’ Retirement System
'-+
AMENDMENT TO CONTRACT
Between the
Board of Administration
Public Employees ' Retirement
and the
City Council
City of Downey
California System
'r/A\.
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
February 1, 1958, and witnessed February 3, 1958, and as amended effective May 1,
1959, March 1, 1964, January 1, 1965, January 1, 1966, July 1, 1970, January 3, 1971,
January 1, 1974, January 1, 1975, March 22. 1976, January 1, 1977, August 1, 1983,
July 15, 1994, January 13, 1995, June 30, 1997, July 24, 2000 and August 19, 2002
which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
A Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective August 19, 2002, and hereby replaced by the following paragraphs
numbered 1 through 15 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 and age 50 for local safety
members
RESOLUTION NO. 09-7131
PAGE THREE
2 Public Agency shall participate in the Public Employees’ Retirement
System from and after February 1, 1958 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 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 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
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 1 1, 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 CalPERS’ Board of Administration.
RESOLUTION NO. 09–7131
PAGE FOURa
(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.
b.
C.
Local Fire Fighters (herein referred to as local safety members);
Local Police Officers (herein referred to as local safety members);
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.CROSSING GUARDS HIRED ON OR AFTER MAY 1, 1959; AND
b.TEMPORARY EMPLOYEES HIRED ON OR AFTER MAY 1, 1959.
6.Public Agency and the Downey Recreation and Park District have agreed
to a merger of their contracts, and this contract shall be a continuation of
the benefits of the contract of the Downey Recreation and Park District,
pursuant to Section 20567.6 of the Government Code. Such merger is
effective as of July 1 , 1966. Public Agency, by this contract, assumes the
assets and liabilities accumulated under the former contract of the
Downey Recreation and Park District, in the ratio of the Districts payroll
assumed by Public Agency to the last total District Payroll. Legislation
repealed said Section effective January 1 , 1988.
7 The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment before and not on or after August 19, 2002 shall be
determined in accordance with Section 21354 of said Retirement Law.
subject to the reduction provided therein for service on and after January
1, 1959, the effective date of Social Security coverage, and prior to June
30, 1975, termination of Social Security, for members whose service has
been included in Federal Social Security (2% at age 55 Full and Modified).
RESOLUTION NO. 09-7131
PAGE FIVE
8 The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment on or after August 19, 2002 shall be determined in
accordance with Section 21354.5 of said Retirement Law, subject to the
reduction provided therein for service on and after January 1, 1959, the
effective date of Social Security coverage, and prior to June 30, 1975,
termination of Social Security, for members whose service has been
ncluded in Federal Social Security (2.7% at age 55 Full and Modified).
9 The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full)
10 Public Agency elected and elects to be subject to the following optional
provISIons:
a
b
C
d
e
f
Section 21573 (Third Level of 1959 Survivor Benefits) for local
safety members only.
Sections 21624 and 21626 (Post-Retirement Survivor Allowance)
for local safety members only
Section 21222,1 (One-Time 5% Increase - 1970).
repealed said Section effective January 1 , 1980
Legislation
Section 21222,2 (One-Time 5% Increase - 1971 )
repealed said Section effective January 1 , 1980
Legislation
Section 20042 (One-Year Final Compensation).
Section 20020,1 ("Local Police Officer" shall include employees of
a police department who were employed to perform identification or
cornmunication duties on August 4, 1972 and who elected to be
local safety members within six months of January 1, 1977).
Legislation repealed said Section effective January 1, 1985
g.
h
I
Section 21024 (Military Service Credit as Public Service).
Section 21548 (Pre-Retirement Option 2W Death Benefit) for local
miscellaneous members only.
Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members only.
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RESOLUTION NO o 09–7131
PAGE SEVEN
15 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
PUBLIC EMPLOYEES’,RETIREMENT SYSTEM
f•
{''IBY
LORI MCGARTLAND. CHIEF
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
CITY OF DOWNEY
BY
PRESIDING OFFICER
r+4 \
Witness Date
Attest:
Clerk
AMENDMENT ER# 0371
PERS-CON-702A (Rev_ la\05)