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Home My WebLink About06. Amend CalPERS Fire Safety AGENDA MEMO DATE: October 11, 2011 TO: Mayor and Members of the City Council FROM: Office of the City Manager By: Irma Youssefieh, Human Resources Director SUBJECT: Adoption of Documents to Process an Amendment to the CalPERS Contract to provide the 3% @ 55 Second Tier Retirement Formula for Local Fire Safety Member New Hires RECOMMENDATION That the City Council introduce the attached Ordinance and adopt the attached Resolution: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF DOWNEY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM. AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AUTHORIZING A RESOLUTION OF INTENTION TO AMEND THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF DOWNEY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM. DISCUSSION This action will begin the process of amending the City’s CalPERS contract to provide Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Full formula) is applicable to local fire safety members entering membership after the effective date of the contract amendment. This amendment will provide a lower retirement formula to sworn fire employees hired after the effective date of the contract amendment. Employees hired prior to the effective date of the contract amendment shall remain in the existing 3% @ 50 Full formula with City paid 9% member’s contribution rate. As a step towards reducing pension costs in the future, this provision was negotiated in the recent Memoranda of Understanding (MOUs) between the City of Downey and the Downey Firemen’s Association and the Downey Fire Management Association. In addition, the new hire will pay the required 9% member’s contribution rate. This contract amendment will only impact new employees represented by the Downey Firemen’s Association and the Downey Fire Management Association and hired after the effective date of the contract amendment. The contract amendment is scheduled to take effect December 9, 2011 which is the date after the expiration of 30 days from adoption of the final Ordinance which is scheduled for November 8, 2011. CITY OF DOWNEY, CALIFORNIA FISCAL IMPACT Decreases in the employer contribution rate for the CalPERS safety plan will occur as employees are hired into the Second Tier. For fiscal year 2011-12, the employer contribution rate is 27.725% of reportable earnings. Attachments: Ordinance Resolution with Exhibit S:/Agenda Memos.CC.2011-12/PERS/Fire.Amend. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF DOWNEY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM WHEREAS, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That an amendment to the contract between the City Council of the City of Downey and the Board of Administration, California Public Employees’ Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City Council of the City of Downey is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the Press Telegram, a newspaper of general circulation, published and circulated in the County of Los Angeles, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this ____ day of ______, 2011. ____________ LUIS H. MARQUEZ, Mayor ATTEST: _________________________________ JOYCE E. DOYLE, Interim City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss: CITY OF DOWNEY ) I HEREBY CERTIFY that the foregoing Ordinance No. was introduced at a regular meeting of the City Council of the City of Downey held on the 11th day of October, 2011, and adopted at a regular meeting of the City Council of the City of Downey on the ____ day of ______, 2011, by the following vote, to wit: AYES: Council Member(s): NOES: Council Member(s): ABSENT: Council Member(s): ABSTAIN: Council Member(s): __________________ JOYCE E. DOYLE, Interim City Clerk RESOLUTION NO. AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AUTHORIZING A RESOLUTION OF INTENTION TO AMEND THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF DOWNEY 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 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 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Full formula) is applicable to local fire members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 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. th APPROVED AND ADOPTED this 11 day of October, 2011. __________________________ LUIS H. MARQUEZ, Mayor ATTEST: _______________________________ JOYCE E. DOYLE, Interim City Clerk I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council th of the City of Downey at a regular meeting thereof held on the 11 day of October, 2011, by the following vote, to wit: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: _________________________________ JOYCE E. DOYLE, Interim City Clerk