HomeMy WebLinkAboutResolution No. 12-7373 RESOLUTION NO. 12 -7373
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
employees encies and their in the Public Employees' Retirement System by the execution of
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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 police members entering membership for the first time in the police 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.
APPROVED AND ADOPTED this 1 1 th day of tembe 12.
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ROGE
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BROSSMER, Mayor
ATTEST:
,
ADRIA M. JIMENE , CM
City Clerk
RESOLUTION NO. 12 -7373
PAGE 2
HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular p y y
y y g ar meeting thereof held on the 11th day of September 2012, by the
following vote, to wit:
AYES: Council Members: Guerra, Marquez, Vasquez, Gafin, Mayor Brossmer
q y
NOES: Council Members: None
ABSTAIN: Council Members: None
ABSENT: Council Members: None
ADRIA M. JIMEN Z, CMC
City Clerk
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Ca1PERS
EXHIBIT
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Downey
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, August 19, 2002, July
13, 2009, December 9, 2011 and January 11, 2012 which provides for participation of
Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed
effective January 11, 2012, and hereby replaced by the following paragraphs
numbered 1 through 17 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 Iocal miscellaneous members entering membership in the
miscellaneous classification on or prior to January 11, 2012, age 60 for
Iocal miscellaneous members entering membership for the first time in the
miscellaneous classification after January 11, 2012, age 50 for Iocal fire
members entering membership in the fire classification on or prior to
December 9, 2011 and for those Iocal police members entering
membership in the police classification on or prior to the effective date of
this amendment to contract, age 55 for Iocal fire members entering
membership for the first time in the fire classification after December 9,
2011 and for those Iocal police members entering membership for the first
time in the police classification after the effective date of this amendment
to contract.
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 p rovisions of
the Public Employees Retirement Law except such as apply only on
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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, Tosses, Liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
that Y
t 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 11, of the United States Bankruptcy Code
or any similar provision of Taw.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CaIPERS' Board of Administration.
(0 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. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
c. 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).
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 and not entering membership for
the first time in the miscellaneous classification after January 11, 2012
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 included 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 current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after
January 11, 2012 shall be determined in accordance with Section 21353
of said Retirement Law (2% at age 60 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service for local fire members entering
membership in the fire classification on or prior to December 9, 2011 and
for those local police members entering membership in the police
classification on or prior to the effective date of this amendment to contract
shall be determined in accordance with Section 21362.2 of said
Retirement Law (3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited current service as a local fire member entering membership for
the first time in the fire classification after December 9, 2011 and for those
local police members entering membership for the first time in the police
classification after the effective date of this amendment to contract shall
be determined in accordance with Section 21363.1 of said Retirement Law
(3 °r6 at age 55 Full).
12. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21573 (Third Level of 1959 Survivor Benefits) for local
safety members only.
b. Sections 21624 and 21626 (Post - Retirement Survivor Allowance)
for local safety members only.
c. Section 21222.1 (One -Time 5 % Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
d. Section 21222.2 (One -Time 5% Increase - 1971). Legislation
repealed said Section effective January 1, 1980.
e. Section 20042 (one -Year Final Compensation).
f. Section 20020.1 ( "Local Police Officer' shall include employees of
a police department who were employed to perform identification or
communication 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. Section 21024 (Military Service Credit as Public Service).
h. Section 21548 (Pre - Retirement Option 2W Death Benefit) for local
miscellaneous members only.
i. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members only.
j. 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
December 9, 2011.
Section 21353 (2% 60 Full formula) is applicable to local
miscellaneous members entering membership for the first time in
the miscellaneous classification after Janaury 11, 2012.
Section 21363.1 (3% a 55 Full formula) is applicable to local
police members entering membership for the first time in the police
classification after the effective day of this amendment to contract.
13. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
March 22, 1976. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
14. 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 and local safety members of said
Retirement System.
15. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local safety members.
b. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members.
c. 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.
d. 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.
16. 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.
17. Contributions required of Public Agency and its employees
� y 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 ma y be prescribed
by Board regulation. If more or Tess than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
adjustment
with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made b y direct
payments between the employee and the Board.
B. This amendment shall be effective on the da y of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF DOWNEY
BY BY
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS ID #1504613451
PERS - CON -702A