HomeMy WebLinkAbout05. CalPERS Amend Fire
AGENDA MEMO
DATE:
November8, 2011
TO:
Mayor and Members of the City Council
FROM:
Office of the City Manager
By: Irma Youssefieh, Human Resources Director
SUBJECT:
CalPERS Contract Amendment to provide the 3% @ 55 Second Tier Retirement
Formula for Local Fire Safety Member New Hires
RECOMMENDATION
That the City Council adopt the attached Ordinance:
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.
DISCUSSION
At the regular meeting of the City Council on October 11, 2011, the City Council adopted 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
(CalPERS) and staff introduced the above referenced Ordinance which authorizes such
amendment to provide a second tier retirement formula for fire safety member new hires.
Adoption of the Ordinance will conclude the process to amend the City’s CalPERS safety
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 (new hires) after
December 9, 2011, the effective date of the contract amendment. In addition, the new hire will
contribute the required 9% member’s contribution rate. 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.
These provisions were negotiated in the recent Memoranda of Understanding between the City
of Downey and the Downey Firemen’s Association and the Downey Fire Management
Association as a step towards reducing pension costs in the future.
This contract amendment will apply to new employees hired after December 9, 2011 and
represented by the Downey Firemen’s Association and the Downey Fire Management
Association.
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 will remain 27.725% of reportable earnings.
Attachment: Ordinance
S:/Agenda Memos.CC.2011-12/PERS/Fire.Amend.
CITY OF DOWNEY, CALIFORNIA
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.
th
APPROVED AND ADOPTED
this 8 day of November, 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
th
adopted at a regular meeting of the City Council of the City of Downey on the 8 day of
November, 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