HomeMy WebLinkAboutOrd 1998-2726ORDINANCE NO. 2726
AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND THE
BOARD OF ADMINISTRATION O'F THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM. THIS ORDINANCE SHALL
EXPIRE UPON THE EFFECTIVE DATE OF ORDINANCE 2727
WHEREAS, there are three Memorandum of Understandings (MOUs) in place which
refer to the provision of Section 21574 (Fourth Level of 1959 Survivor Benefits) being
available, however, the contract with PERS has not yet been officially amended; and
WHEREAS, since this provision takes effect only when an employee dies prior to
retirement, and if this occurs prior to the completion of the normal referendum period, the City
would be liable for the difference between the two levels; and
WHEREAS, this inconsistency needs to be corrected as soon as possible in order to
avoid possible detrimental financial consequences.
The City Council of the City of Chula Vista does ordain as follows:
SECTION 1: That an amendment to the contract between the City Council of the City
of Chula Vista and the Board of Administration, California Public Employees' Retirement
System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit
A, and by such reference made a part hereof as though herein set out in full.
SECTION 2: The Mayor of the City Council is hereby authorized, empowered, and
directed to execute said amendment for and on behalf of said Agency.
SECTION 3: Pursuant to Section 311 of the Chula Vista Charter, the City Council
hereby declares that this Ordinance shall be effective immediately as an urgency measure
upon its first reading and adoption if passed by a four*fifth's vote of the City Council. This
rdinance shall expire when Ordinance No. 2727 takes full force and effect.
Presented by
Approved as to form by
S
Assistant City Manager
Ordinance 2726
Page 2
Exhibit A
AMENDMENT TO CONTRACT
BETWEEN THE -
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL-
OF THE
CITY OF CHULA VISTA
The Board of Administration, Public Employees' Retirement System, hereina~er referred to as
Board, and the goveming body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective October 1, 1948, and witnessed August 31, 1948, and as
mended effective October 1, 1951, November 1, 1955, January 1, 1960, January 1, 1961,
September 1, 1967, September 28, 1973, October 4, 1973, October 8, 1976, April 16, 1981,
January 8, 1982, September 28, 1984, July 3, 1987, October 13, 1989, September 27, 1990,
November 16, 1990, January 4, 1991, September 6, 1991, October 7, 1994 and June 28, 1995
which provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
Paragraphs 1 through 14 are hereby stricken from said contract as executed effective June
28, 1995, and hereby replaced by the following paragraphs numbered I through 13
inclusive:
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 local
miscellaneous members and age 50 for local safety members.
Public Agency shall participate in the Public Employees' Retirement System from
and after October 1, 1948 making its employees as hereinafter provided, members
of said System subject to all provisions of the Public Employees' Retirement Law
except such as apply only on 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.
Ordinance 2726
Page 3
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 a~eement:
a. Local Fire Fighters .(herein referred to as local safety members);
b. Local Police Officers (hereinfeferred to as local safety. members):
Employees other than local safety members (herein referred to as local
miscellaneous members).
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:
NO ADDITIONAL EXCLUSIONS
Effective October 4, 1973 and prior to January 1, 1975, those members who were
hired by Public Agency on a temporary and/or seasonal basis not to exceed 6
months were excluded from PERS membership by contract. Government Code
Section 20336 superseded this contract provision by providing that any such
temporary, and/or seasonal employees are excluded from PERS membership
subsequem to January 1, 1975. Legislation repealed and replaced said Section
with Government Code Section 20305 effective July 1, 1994.
This contract shall be a cominuation of the contract of the MontgomeD, Fire
Protecction District, hereinafter referred to as "Former Agency". The
accumulated conuributions, assets and liability for prior and current sen, ice under
the Former Agency's contract shall be merged pursuant to Section 20508 of the
Government Code. Such merger occurred January, 1, 1986.
All benefits provided under this contract shall apply to all past sen'ice for
former employees of the Montgomery Fire Protection District.
The percentage of final compensation to be provided for each year of credited
prior and current service as a local miscellaneous member shall be determined in
accordance with Section 21354 of said Retirement Law (2% at age 55 Full).
Ordinance 2726
Page 4
The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member 'shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
Public Agency elected and elecks to be sub. iec~ to the following optional
provisions:
a. Section 20965 (Credit for Ui~used Sick Leave ).
Section 20425 ("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 on or before September 28, 1973).
Section 21325 (Special 3% - 15% Increase) for or on behalf of those local
miscellaneous members and those local safety members who retired or
died prior to January 1, 1974.
Sections 21624 and 21626 (Post-Retirement Sun,ivor Allowance) for local
safety members only.
Section 20516 (Public Agency and its employees have agreed to share the
cost of the following benefit):
Section 21362 2% at 50 Full formula
From and after September 28, 1984 to July 1, 1985 the safety employees
of Public Agency shall be assessed an additional 0.341% of their
compensation for a total contribution rate of 9.341% pursuant to
Government Code Section 20516.
Section 21574 (Fourth Level of 1959 Sun,ivor Benefits).
g. Section 20042 (One-Year Final Compensation).
Section 20426 ("Local Police Officer" shall include any officer or
employee of a police department employed to perform communication
duties and who elected to become a local safety member on August 25,
1973).
Ordinance 2726
Page 5
PLEASE DO NOT SIGNONt.:.¥"
10.
ll.
Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on October 8, 1976.
Accumulated contributions of Public Agency shall be fixed and determined as
provided in Govemment Code Section 20834, and accumulated contributions
thereafter shall be held by the Bodrd as provided in Government Code Section
20834.
Public Agency shall contribute to said Retirement System the contributions
determined by acmarial valuations of prior and future service liability with respect
to local miscellaneous members and local safety members of said Retirement
System.
12. Public Agency shall also conn'ibute to said Retirement System as follows:
13.
Per covered member, $3.50 per month on account of the liability for 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 and local safety members.
A reasonable mount, as fixed by the Board, payable in one installment
within 60 days of date of contact 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.
A reasonable mount, 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.
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
Retiremenu Law.
Ordinance 2726
Page 6
14.
Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retiremere System within fifteen days after the end of the
period to which said contributions refer or as may be prescribed by Board
regulation. If more or less than the correct amount of contributions is paid for any
period, proper adjustment shall be made in connection with subsequent
remittances. Adjustments on account of errors in contributions required of any
employee may be made by direct pa~'ments between the employee and the Board.
B. This amendmenl shall be effective on the __ day of
,19
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIRE,M~.T SYSTEM
BY
KENNETH W. IvlARZION, CI~[EF
ACTUARI.4i & EMPLO,Y~ SERVICES DIVISION
PUBLIC EMPLOYEES' Ii~'TIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF CHULA VISTA
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk
Ordinance 2726
Page 7
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 7th day of April, 1998, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
Moot, Padilia, Rindone, Salas, and Horton
None
None
None
Shirley ~rt0n, Mayor
ATTEST:
Beverly ;~uthelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Ordinance No. 2726 was introduced and approved as an urgency measure at
a regular meeting held on the 7th day of April 1998.
Executed this 7th day of April, 1998.
Beverl~A~uthelet, City Clerk