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HomeMy WebLinkAboutOrd 2011-3188ORDINANCE NO. 3188 ORDINANCE OF THE CITY OF CHULA VISTA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS) AND THE CITY COUNCIL OF THE CITY OF CHULA VISTA TO PROVIDE (1) SECTION 21353 (2% @ 60 FORMULA) TO ALL LOCAL MISCELLANEOUS MEMBERS, (2) SECTION 21363.1 (3% @ 55 FORMULA) TO ALL LOCAL SAFETY MEMBERS, AND (3) SECTION 20037 (THREE-YEAR FINAL COMPENSATION) TO ALL LOCAL MISCELLANEOUS AND LOCAL SAFETY MEMBERS, WHO ARE ENTERING MEMBERSHIP FOR THE FIRST TIME AFTER THE EFFECTIVE DATE OF THIS CONTRACT AMENDMENT WHEREAS, the City of Chula Vista is a contracting Public Agency of the California Public Employees' Retirement System; and WHEREAS, the City of Chula Vista desires to adopt this ordinance to authorize an amendment to the contract between the City of Chula Vista and the Board of Administration of the California Public Employee's Retirement System to provide the following: Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60 Formula) and Section 20037 (Three-Year Final Compensation) are applicable to all local Miscellaneous members entering membership for the first time in the Miscellaneous classification after effective date of this contract amendment. Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Formula) and Section 20037 (Three-Year Final Compensation) are applicable to all local Safety members who are entering membership for the first time after the eazliest possible effective date of this contract amendment. Section 20037 ('t'hree year Final Compensation). Section 20037 (three-yeaz fmal compensation) is applicable to all Local Miscellaneous and Local Safety members, who are entering membership for the first time after the effective date of this contract amendment. NOW, THEREFORE, 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 1, and by such reference made a part hereof as though herein set out in full. Ordinance No. 3188 Page 2 Section 2. The Mayor of Chula Vista, the Presiding Officer of the City Council, 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 Chula Vista Star News, a newspaper of general circulation, published and circulated in the City of Chula Vista and thenceforth and thereafter the same shall be in full force and effect. Introduced and First Reading on this 22nd day of February, 2011. Adopted and approved on this 22nd day of March, 2011. ~ y // ' d Mayor Cheryl Co Presiding Officer Approved as to form by Attest ~ b~~ D `\ O G1en~R: oogi Donna R. Norris, MC ' Att ey City Clerk Ordinance No. 3188 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 22nd day of March 2011, by the following vote: AYES: Councilmembers: Aguilar, Bensoussan, Castaneda, Ramirez and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None ., II .' ~~\A'~l Cheryl Cox, Mayor ATTEST: Donna R. Noms, CM ,City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No. 3188 had its first reading at a regulaz meeting held on the 22nd day of February 2011 and its second reading and adoption at a regular meeting of said City Council held on the 22nd day of March 2011; and was duly published in summary form in accordance with the requirements of state law and the City Charter. o2S -~~ ~E1r~.d.~ri~ Date Donna R. Norris, CMC, City Clerk i,,_ Ca1PERS California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Chula Vista 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 October 1, 1948, and witnessed August 31, 1948, and as amended 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, June 28, 1995, May 29, 1998, April 7, 2000, July 1, 2002, December 27, 2002, June 27, 2003, August 20, 2004 and November 7, 2007 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 15 are hereby stricken from said contract as executed effective November 7, 2007, and hereby replaced by the following paragraphs numbered 1 through 18 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 60 for local miscellaneous members, age 50 for local safety members entering membership in the safety classification on or prior to the effective date of this amendment to contract and age 55 for local safety members entering membership for the first time in the safety classification after the effective date of this amendment to contract. 2. 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. 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, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that 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 andlor 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 law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. (f) 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: Local Fire Fighters (herein referred to as local safety members); Local Police Officers (herein referred to as local safety members); c. 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 6. Effective October 4, 1993 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 subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 1, 1994. This contract shall be a continuation of the contract of the Montgomery Fire Protection District, hereinafter referred to as "Former Agency". The accumulated contributions, assets and liability for prior and current service under the Former Agency's contract shall be merged pursuant to Section 20508 of the Government Code. Such merger occurred January 1, 1986. a. All benefits provided under this contract shall apply to all past service for former employees of the Montgomery Fire Protection District. 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment before and not on or after December 27, 2002 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 9. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment on or after December 27, 2002 and not entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21354.3 of said Retirement Law (3% at age 60 Full). 10. 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 the effective date of this amendment to contract shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 11. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member entering membership in the safety 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). 12. The percentage of final compensation to be provided for each year of credited current service as a local safety member entering membership for the first time in the safety classification after the effective date of this amendment to contract shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full). 13. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20965 (Credit for Unused Sick Leave). b. 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). c. Section 21325 (One-Time 3% to 15% Increase For Local Miscellaneous Members Who Retired or Died Prior to January 1, 1974). Legislation repealed said Section effective January 1, 2002. d. Sections 21624 and 21626 (Post-Retirement Survivor Allowance) for local safety members only. e. Section 20516 (Employees Sharing Cost of Additional Benefits): Section 21362 (2% @ 50 Full formula) for local safety members. 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. f. Section 21574 (Fourth Level of 1959 Survivor Benefits). g. Section 20042 (One-Year Final Compensation) for those local miscellaneous members and local safety members entering membership in the miscellaneous classification and safety classification on or prior to the effective date of this amendment to contract. h. 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). i. Section 21024 (Military Service Credit as Public Service). Section 21623.5 ($5,000 Retired Death Benefit). k. Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance) for local miscellaneous members only. Section 20434 ("Local Fire Fighter" shall include any officer or employee of a fire department employed to perform firefighting, fire prevention, fire training, hazardous materials, emergency medical services, or fire or arson investigation services as described in Government Code Section 20434). m. Section 20903 (Two Years Additional Service Credit). n. Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three- Year Final Compensation) are applicable to local safety members entering membership for the first time in the safety classification after the effective date of this amendment to contract. 14. 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 Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 15. 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. 16. 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 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. b. 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. c. A reasonable amount, as fixed by the Board, payable ih 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. 17. 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. 18. Contributions required of Public Agency and its employees 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 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 payments between the employee and the Board. B. This amendment shall be effective on the zzna day of April zo11 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF CHULA VISTA BY ~I'/~W......` ~-r+C~ ~ BY LORI MCGARTLAND, CHIEF PRESIDING O IC R EMPLOYER SERVICES DIVISION Cheryl Cox, ayor PUBLIC EMPLOYEES' RETIREMENT SYSTEM ~ ~~ Witness Date ~ Attest: ~~1(,Gt~ ~i L~ Clerk Donna Norris, CMC AMENDMENT ER# 195 PERS-CON-702A CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O.Box 942709 Sacramento, CA 94229-2709 (888) CaIPERS (225-7377) CERTIFICATION OF FINAL ACTION OF GOVERNING BODY I hereby certify that the City Council of the (governing body) Chula Vista (public agency) considered and adopted on March 22 2011 , by an affirmative (date) vote of a majority of the members of said Governing Body, Ordinance /Resolution No. Ord. 2011-3188 approving the attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the California Public Employees' Retirement System, a certified copy of said Ordinance I Resolution in the form furnished by said Board of Administration being attached hereto. Adoption of the retirement benefit increase was not placed on the consent calendar. Clerk/Secretary Donna Norris, CMC Title City Clerk Date ~ ~ ~/~ ~, °~~ j PERS-CON-5 (Rev. 6/09)