HomeMy WebLinkAbout15. CalPERS Misc Employee Contract Amend
AGENDA MEMO
DATE:
December 13, 2011
TO:
Mayor and Members of the City Council
FROM:
Office of the City Manager
By: Irma Youssefieh, Human Resources Director
SUBJECT:
Resolution of Intention to amend CalPERS Contract to Provide the 2% @
60 Second Tier Retirement Formula for Local Miscellaneous Member New
Hires
RECOMMENDATION
That the City Council adopt the attached Resolution:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AUTHORIZING A RESOLUTION OF INTENTION TO APPROVE 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
This action will begin the process of amending the City’s CalPERS contract to provide
Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60 Full formula) is
applicable to local miscellaneous members entering membership after the effective date
of the contract amendment.
To complete the amendment process, an Ordinance must be adopted authorizing the
amendment. As required by CalPERS, adoption of the Ordinance must be at least
twenty (20) days after the date the City Council adopts the Resolution of Intention. The
effective date of the Ordinance is usually thirty (30) days after adoption of the Ordinance
unless an Urgency Ordinance is adopted which establishes an earlier Ordinance
effective date. Staff recommends that the City Council adopt the Ordinance as an
urgency measure on January 10, 2012 so that hiring can take place to fill certain vacant
positions under the 2% @ 60 second tier effective January 11, 2012.
Implementation of the 2% @ 60 retirement formula plus the requirement that the new
hire miscellaneous employee contribute the full 7% (of reportable earnings) member’s
contribution rate are provisions negotiated this year in the recent Memoranda of
Understanding (MOUs) between the City of Downey and the Downey City Employees’
Association – Miscellaneous and Maintenance Units and as recently imposed on the
Downey Public Safety Auxiliary Association. The provisions were also included in the
Resolution adopted by the City Council on October 25, 2011 for miscellaneous new
CITY OF DOWNEY, CALIFORNIA
hires in classifications designated as Executive Management, Mid-Management, and
Confidential/Exempt.
Miscellaneous employees hired prior to the effective date of the contract amendment
remain in the existing 2.7% @ 55 (first tier) retirement formula with City paid 8%
member’s contribution rate.
FISCAL IMPACT
Decreases in the employer contribution rate for the CalPERS miscellaneous plan will
occur as employees are hired into the second tier retirement formula. For fiscal year
2011-12, the employer contribution rate is 17.368% of reportable earnings.
Attachment: Resolution with Exhibit
S:/Agenda Memos.CC.2011-12/PERS/Misc.Amend.
RESOLUTION NO.
AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AUTHORIZING A RESOLUTION OF INTENTION TO APPROVE 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 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 21353 (2% @ 60 Full formula) is applicable to local
miscellaneous members entering membership for the first time in the miscellaneous
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 13 day of December, 2011.
__________________________
ROGER C. BROSSMER, 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 13 day of December, 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