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HomeMy WebLinkAbout00-015 - Resolutions RESOLUTION NO. FD00-015 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT ADOPTING A RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AND THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT. A. RECITALS WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of 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 by 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 21362.2 (3% @ 50 Full formula) for local Safety members and Section 21574 (Fourth Level of 1959 Survivor Benefits) for local miscellaneous members and local safety members. B. RESOLUTION NOW, THEREFORE, BE IT RESOLVED that the governing body 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. Resolution No. FD 00-015 Page 2 of 9 PASSED, APPROVED, AND ADOPTED this 4" day of October 2000. AYES: Alexander, Biane, Curatalo, Dutton, Williams NOES: Nore ABSENT: Nore ABSTAINED: None William J. sander, President ATTEST: ZACQ. Debra J. Ada ecretary I, DEBRA J. ADAMS, SECRETARY of the Rancho Cucamonga Fire Protection District, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a Regular Meeting of said Board held on the 4'h day of October 2000. Executed this 5'h day of October 2000, at Rancho Cucamonga, California. Z�� k � De a J. Adams, Wretary CO FD 90-006/Ordinance No. FD 34(11/oin000) Resolution No. FD 00-015 Page 3 of 9 PLEASE DO NOT SIGN - EXHIBIT ONLY AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE BOARD OF DIRECTORS RANCHO CUCAMONGA FIRE PROTECTION DISTRICT WHEREAS, Government Code Section 21574 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts, and WHEREAS, Government Code Section 21574, requires pooling of all assets and liabilities of all contracting agencies subject to said Section. NOW, THEREFORE BE IT AGREED, that assets and liabilities of the Rancho Cucamonga Fire Protection District and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21574 BOARD OF ADMINISTRATION BOARD OF DIRECTORS PUBLIC EMPLOYEES' RETIREMENT SYSTEM RANCHO CUCAMONGA FIRE PROTECTION DISTRICT BY BY KENNETH W. MARZION, CHIEF PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Date PERS-CON-59(Rev 7/95 Resolution No. FD 00-015 Page 4 of 9 PLEASE DO NOT SIGN - EXFIIBIA ONLY Rancho Cucamonga Fire -2- August 31. 2000 Protection District 3. Agreement to Pool 1959 Survivor Benefits Assets and Liabilities 4. Certification of Member Contribution Rate. The Contract Amendment Cost Analysis (actuarial valuation) information was based on the most recent annual valuation and is good until the next annual valuation report is sent to your agency. If your agency does not take action to amend its contract and we have mailed the next annual valuation report to your agency, you must contact our office for an updated cost analysis. Disclosure of the cost of this Contract .Amendment We recommend that the agency discicse the following costs due to the adoption of this plan amendment: 1) Change in the Present Value of Benefits S 4.320,983 2) Change in the Unfunded Accruec Liability S 2,008.783 3) Change in the employer rate 0 000% Disclosure of the cost of this Contract Amendment for Fourth Level of 1959 Survivor Benefits for safety employees: We recommend that the agency disclose the following costs due to the adoption of this plan amendment: 1) Total Normal Cost (first year only) 5 2.726 2) Unfunded Liability Payment (annually for 5 years) S (2,726) 3) Total First Year Cost 0% Disclosure of the cost of this Contract.Amendment We recommend that the agency disclose the following costs due to the adoption of this plan amendment: Miscellaneous plan: 1) Change in the Present Value of Benefits $ 0 2) Change in the Unfunded Accruec Liability S (86,881) 3) Change in the employer rate 0 000% Resolution No. FD 00-015 Page 5 of 9 PLEASE DO NOT SIGN - EXHIBIT ONLY Rancho Cucamonga Fire -3- August 31, 2000 Protection District Disclosure of the cost of this Contract Amendment for Fourth Level of 1959 Survivor Benefits We recommend that the agency disclose the following costs due to the adoption of this plan amendment: 1) Total Normal Cost (first year only) S 422 2) Unfunded Liability Payment (annually for 5 years) S (422) 3) Total First Year Cost $ 0 The employer contribution rate for the Fourth Level of 1959 Survivor Benefits is 50 00 per month, per covered member. (Subject to annual change ) Agencies will be billed annually and payments may vary depending on the funding reserve level of the pool In addition, members covered by the 1959 Survivor Benefits contribute 52 00 per month Government Code Section 7507 requires that the future annual costs of the proposed contract amendment be made public at a public meeting at least two weeks prior to the adoption of the final Resolution. The agency is to certify compliance on the enclosed Certification of Compliance with Government Code Section 7507 Two copies of the Agreement to Pool 1959 Survivor Benefits Assets and Liabilities are enclosed for signature. The agreement will acknowledge that public agencies subject to Section 21574 will have all assets and liabilities pooled into a single account based on term insurance rates for local miscellaneous members and local safety members In summary, the following documents must be returned to this office before we can forward the actual contracts and other final documents necessary to complete the proposed amendment. DO NOT HOLD THESE DOCUMENTS PENDING ADOPTION OF THE FINAL RESOLUTION. ORIGINAL SIGNATURES ARE REQUIRED 1 Resolution of Intention, original or certified copy. 2 Certification of Governing Body's Action (CON-12). original 3. Certification of Compliance with Government Code Section 7507. (CON-12A). original or certified copy. 4. Agreement to Pool 1959 Survivor Benefits Assets and Liabilities, two original or certified copies 5. Certification of Members Contribution Rate. Resolution No. FD 00-015 Page b of 9 PLEASE DO NOT SIGN - EXHIBIT ONLY Adfk�- Ca1PERS EXHIBIT California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the Board of Directors Rancho Cucamonga Fire Protection District 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 15, 1975, and witnessed February 12, 1975, and as amended effective June 16, 1979, May 26, 1990, November 21, 1991, November 16, 1995, June 1, 1996 and November 21, 1996 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective November 21, 1996, and hereby replaced by the following paragraphs numbered 1 through 12 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 local miscellaneous members and age 50 for local safety members. Resolution No. FD 00-015 Page 7 of 9 PLEASE DO NOT SIGN - EXHIIBIY ANLY "LEASE DO NOT SIGN "EXHIBIT ONL 2. Public Agency shall participate in the Public Employees' Retirement System from and after February 15, 1975 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. 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. Employees other than local safety members (herein referred to as local miscellaneous members). 4. 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. POLICE OFFICERS. 5. This contract shall be a continuation of the benefits of the contract of the Alto Loma Fire District and the Cucamonga Fire Protection District, hereinafter referred to as "Former Agency", pursuant to Section 20567.2 of the Government Code, Former Agency having ceased to exist and having been required by law to be succeeded by Public Agency on February 15, 1975. Public Agency, by this contract, assumes the accumulated contributions and assets derived therefrom and liability for prior and current service under Former Agency's contract with respect to the Former Agency's employees. Legislation repealed said Section effective January 1, 1988. 6. The percentage of final compensation to be provided for each year of credited prior and currert service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 7. 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 21362.2 of said Retirement Law (3% at age 50 Full). Resolution No. FD 00-015 Page 8 of 9 PLEASE DO NOT SIGN - EXHIBIT ONLY 'PLEASE DO NOT SIGN "EXHIBIT 0. S. Public Agency elected and elects to be subject to the following optional provisions: a. Section 21574 (Fourth Level of 1959 Survivor Benefits). b. Section 20965 (Credit for Unused Sick Leave) for local safety members only. C. Section 20042 (One-Year Final Compensation). d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. 9. 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. 10. 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 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 11. 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. Resolution No. FD 00-015 Page 9 of 9 PLEASE DO NOT SIGN - EXHIIBIY ANLY 12. 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 day of BOARD OF ADMINISTRATION BOARD OF DIRECTORS PUBLIC EMPLOYEES' RETIREMENT SYSTEM RANCHO CUCAMONGA FIRE PROTECTION DISTRICT BY BY KENNETH W. MARZION, CHIEF PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SY n\ ` Witness Date \1 g �OO7P9\111 Attest. J � ,-.. � erk AMENDMENT PERS-CON-702A(ReV 8W6)