HomeMy WebLinkAbout12-031 - Resolutions RESOLUTION NO. 12-031
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING AN
AMENDMENT TO THE CITY'S PARS RETIREMENT
ENHANCEMENT PLAN TO INCLUDE AN EARLY RETIREMENT
INCENTIVE
WHEREAS, the City of Rancho Cucamonga and the Rancho Cucamonga Fire
Protection District (the "CITY") are members of the Public Agency Retirement System (PARS)
for the purpose of providing tax qualified retirement benefits; and
WHEREAS, the CITY maintains the PARS Retirement Enhancement Plan (the
"PLAN") supplementing CalPERS, and qualifying under the relevant sections of the Internal
Revenue Code and the California Government Code, and
WHEREAS, the CITY has reserved the right to amend the PLAN from time to
time in accordance with Section 5.4 of the PLAN; and
WHEREAS, the CITY deems it in the best interests of the CITY and its eligible
employees to amend the PLAN to provide an early retirement incentive, in addition to the
retirement benefit provided under the existing PLAN, for those full-time Miscellaneous
employees who are (i) employed by the CITY in an eligible position designated for participation
as of February 15, 2012; (ii) sixty years of age with at least ten years of CITY service as of June
30, 2012; (iii) resign from CITY employment effective no later than June 30, 2012; and (iv)
concurrently retire under CalPERS effective no later than July 1, 2012; and
WHEREAS, the incentive offered shall equal $29,000 payable in either Lifetime
monthly benefit payments, 100% Joint-and-Survivor monthly payments, Lump Sum Payment, or
Fixed Term monthly payments from two to fifteen years.
NOW, THEREFORE, BE IT RESOLVED that:
1. The City Council does hereby authorize amending the PARS Retirement
Enhancement Plan effective February 15, 2012, to provide an early retirement
incentive as outlined above; and
2. The City Council has appointed the City Manager, or his/her successor or his/her
designee as the City's PARS Plan Administrator, and
3. The City's Plan Administrator is hereby authorized to execute the PARS legal and
administrative service documents on behalf of the City to implement the PARS early
retirement incentive and further authorizes him to take whatever additional actions
required to administer the City's PARS plans.
Please see the following page
for formal adoption,certification and signatures
PASSED, APPROVED, AND ADOPTED this 15`" day of February 2012.
AYES: Alexander, Buquet, Michael, Williams
NOES: None
ABSENT: Spagnolo
ABSTAINED: None
5
L. Dennis Michael, Mayor
ATTEST:
l n-X
nice C. Reynolds, Ofty Clerk
I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Resolution was duly passed, approved and
adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting
of said City Council held on the 15th day of February 2012.
Executed this 16'" day of February 2012, at Rancho Cucamonga, California.
nice C. Reynolds, Cit Clerk
Resolution No. 12-031 - Page 2 of 5
2012 PARS Supplementary Retirement Plan
City of Rancho Cucamonga
Miscellaneous Employees
February 15, 2012
With regard to the PARS Supplementary Retirement Plan for 2012, the following elements will
be offered:
1.0 Eligibility
1.1 Those full-time miscellaneous employees who:
a) Are employed by the City in an eligible position designated for participation
as of February 15, 2012;
b) Are sixty (60) years of age as of June 30, 2012;
c) Have at least ten (10) years of City service as of June 30, 2012;
d) Resign from City employment effective no later than June 30, 2012; and
e) Retire under PERS effective no later than July 1, 2012.
2.0 Participation Requirements
2.1 Participating employees shall submit all required PARS enrollment materials
and City Letter of Resignation to PARS on or before the deadline date of April
13, 2012. Resignations of participants are irrevocable as of the enrollment
deadline and may not be rescinded. No late applications will be accepted after
April 13, 2012.
2.2 Participation in the retirement incentive requires:
a) Submission of required PARS enrollment materials and City Letter of
Resignation to PARS by April 13, 2012;
b) Resignation from City employment effective no later than June 30, 2012; and
c) Retirement from PERS effective on or before July 1, 2012.
3.0 Incentive Payments
3.1 The incentive offered by the City shall be equal to $29,000. This incentive is
intended to cover medical premiums for the participating employees. The forms.
of benefit payment option include:
a) Lifetime monthly benefit payments;
b) 100% Joint-and-Survivor monthly payments;
c) Lump Sum Payment; and
d) Fixed Term monthly payments of from two (2) to fifteen (15) years. These
payments are guaranteed to the participant for the full term selected.
3.2 Lifetime monthly and 100% Joint and Survivor payments shall include a 2%
annual COLA. Lump Sum and Fixed Term payments do not include a COLA.
Resolution No. 12-031 - Page 3 of 5
2012 PARS Supplementary Retirement Plan
City of Rancho Cucamonga
Miscellaneous Employees
February 15, 2012
3.3 The choice of form of payment (and the choice of payment beneficiary if
choosing a Joint and Survivor form of payment) shall become final as of April
13, 2012 and shall not be subject to change thereafter.
3.4 PARS benefits are to commence August 1, 2012.
4.0 Contract Administrator
4.1 The Contract Administrator for the Retirement Incentive shall be PARS.
4.2 The fee for Phase II Systems/PARS shall be 5.5% of plan contributions to the
PARS Trust for services related to the Supplementary Retirement Plan. Trustee
fees are 0.12% of contributions. Fees are paid by the City.
Resolution No. 12-031 - Page 4 of 5
2012 PARS Supplementary Retirement Plan
City of Rancho Cucamonga
Miscellaneous Employees
February 15, 2012
Projected Timeline:
1. PARS Incentive approved by Council February 15, 2012
2. Enrollment Packets Mailed to Employees' Home Late February 2012
3. Employee Orientation Meetings Mid-March 2012
4. Employee Enrollment Workshop Early April 2012
5. Enrollment Window Closes April 13, 2012
6. Employees Resign from City employment On or before June 30, 2012
7. Employees Retire under PERS On or before July 1, 2012
8. City funds SRP No later than July 20, 2012
9. PARS Benefits Commence August 1, 2012
Resolution No. 12-031 - Page 5 of 5