HomeMy WebLinkAboutAgenda Statement 1986/09/23 Item 16 COUNCIL AGENDA STATEMENT
16
Item
Meeting Date 9/23/86
ITEM TITLE Resolutions Correcting Errors in the Contract between
the City of Chula Vista and the Public Employees
Retirement System
a. P.esolution /77V7 - Correcting errors in PERS
contract for period of September 28, 1984 thru June 30,
1 985
b. Resolution - Correcting error in PERS contract
for period from and after July 1 , 1 985
SUBMITTEa BY Assistant City Manager
REVIEWED BY City Manager 4/5 Vote: Yes No X
When the City's contract with the Public Employees Retirement System (PERS)
was amended 1 ate in 1 984 to provide the 2% at 50 retirement plan for safety
members, the amendment failed to provide for "employee sharing" of the City's
total retirement cost in excess of the negotiated cap of 25.89% employer
rate. To correct the error, two separate resolutions are requi red, which will
accomplish the following. The first resolution will retroactively establish
the City's right to charge public safety employees .341% of the City's
retirement rate from October 1 , 1 98o thru June 30, 1 985. That rate ( .341 %)
times the employee' s total salary fror^ October 1 , 1 984 thru June 30, 1 985
represents the total dollars the City's retirement rate exceeded the 25.89%
MOIJ cap provided in the agreements. The total sum paid by the employees will
be credited to the employee's account rather than the employer' s account, and
carries out the intent of the MOU's.
The second resolution again amends the PERS contract effective July 1 , 1 985 by
el imi nati ng any "empl oyee shari ng" responsi bil i ty enti rel y.
RECOMMENDATION: Adopt resol utions.
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION
As the City Council will recall , approximately one month ago you were advised
that we would be refunding all monies that safety members had contributed
toward the City's retirement rate where that rate exceeded the 25.89% cap
provided for in the MOD's. You were also advised that PERS had made an error
in calculating the City's July 1 , 1 985 rate and, as a consequence, the credit
Page 2, Item 16
Meeting Date 9/23/86
we are receiving against this year's employer's contributions will almost
equal the dollars refunded to the safety employees. In the final analysis
then, while the City was prevented from fully carrying out the intent of the
MOU's, the final corrected rates that the City paid were only slightly higher
than the MOU cap. In fact, we have just been notified that the City's rate
will be 25.874% (slightly below the 25.89% cap) after our contract is
amended one final time to provide for the merger of the Montgomery Fire
Protection District retirement system with our own. That rate will be in
effect at least until June 30, 1 987.
FISCAL IMPRCT: N.A.
ERA:mab
perserrs #2
/ the Cit Council of
Y Y
Chula ista, California
Dated �' ` _!1�..__ _
Public Employees' Retirement System
Field & Contracts Services Division
Contracts Office, Section 900
Post Office Box 90109
Sacramento, CA 95809-0109
Telephone (916) 445-6570
445-4900 (Telecommunication Device
for the Deaf-Interpreter)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a
Resolution adopted by the City Council
(Governing Body)
of the City of Chula Vista
(Name of Public Agency)
on September 23 , 1986 , appearing at Page
(Date)
Volumne of the (Minutes) (Official Records) of
the City of Chula Vista City Council
(Governing Body)
IIIP
/ CITY CLERK or
Secretary of the Board
PERS-CON-12
C0600 (Rev. 4/85)
COUNCIL AGENDA STATEMENT
16
Item
Meeting Date 9/23/86
ITEM TITLE Resolutions Correcting Errors in the Contract between
the City of Chula Vista and the Public Employees
Retirement System
a. P.esolution - Correcting errors in PERS
contract for period of September 28, 1984 thru June 30,
1 985
b. Resolution 4Z771- Correcting error in PERS contract
for period from and after July 1 , 1985
SUBMITTED BY Assistant City Manager(
REVIEWED BY City Managerjf 4/5 Vote: Yes No X
When the City's contract with the Public Employees Retirement System (PERS)
was amended 1 ate in 1 984 to provide the 2% at 50 retirement plan for safety
members, the amendment failed to provide for "employee sharing" of the City's
total retirement cost in excess of the negotiated cap of 25.89% employer
rate. To correct the error, two separate resolutions are requi red, which will
accomplish the following. The first resolution will retroactively establish
the City's right to charge public safety employees .341% of the City's
retirement rate from October 1 , 1 984 thru June 30, 1 985. That rate ( .341%)
times the employee's total salary from October 1 , 1 984 thru June 30, 1 985
represents the total dollars the City's retirement rate exceeded the 25.89%
MOIL cap provided in the agreements. The total sum paid by the employees will
be credited to the employee's account rather than the employer's account, and
carries out the intent of the MOU' s.
The second resolution again amends the PERS contract effective July 1 , 1 985 by
eliminating any "employee sharing" responsibility entirely.
RECOMMENDATION: Adopt resol utions.
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION
As the City Council will recall , approximately one month ago you were advised
that we woul d be refunding all monies that safety members had contributed
toward the City' s retirement rate where that rate exceeded the 25.89% cap
provided for in the MOU' s. You were also advised that PERS had made an error
in calculating the City's July 1 , 1985 rate and, as a consequence, the credit
Page 2, Item 16
Meeting Date 9/23/86
we are receiving against this year's employer's contributions will almost
equal the dollars refunded to the safety employees. In the final analysis
then, while the City was prevented from fully carrying out the intent of the
MOU's, the final corrected rates that the City paid .were only slightly higher
than the MOU cap. In fact, we have just been notified that the City's rate
will be 25.874% (slightly below the 25.89% cap) after our contract is
amended one final time to provide for the merger of the Montgomery Fire
Protection District retirement system with our own. That rate will be in
effect at least until June 30, 1 987.
FISCAL IMPACT: N.A.
ERA:mab
perserrs #2
he City Council of
Chula Vista, California
J`4� I
�CALIFOANIA
Public Employees'* Retirement System -PERS
Field & Contract Services Division
Contracts Office, Section 900
Post Office Box 90109
Sacramento, CA 95809-0109
Telephone (916) 445-6570
445-4900 (Telecommunications
Device for the Deaf)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a
Resolution adopted by the CITY COUNCIL
(Governing Body)
of the City of Chula Vista
(Name of Public Agency)
on SPn1-emhPr 73, 19Rti , appearing at Page
(Date)
Volumne of the (Minutes) (Official Records) of
the City of Chula Vista City Council
(Governing Body)
i
A: ?u-e-'
CITY CLERK or AOr
S a-e n •J' I1 f f B ., d
FC D-CON-12
C0600 (Rev. 1/86)