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Home My WebLink About00-192 - Resolutions RESOLUTION NO. 00-192 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA 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 CITY OF RANCHO 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 giving 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 21574 (Fourth Level of 1959 Survivor Benefits)for local miscellaneous 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. 00-192 Page 2 of 8 PASSED, APPROVED, AND ADOPTED this 4`h day of October 2000. AYES: Alexander, Biane, Curatalo, Dutton, Williams NOES: None ABSENT: None ABSTAINED: None William J. Alexi der, Mayor ATTEST: De&a J. Adams, C, City Clerk I, DEBRA J. ADAMS, 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 4`h day of October 2000. Executed this 5`h day of October 2000 at Rancho Cucamonga, California. 4A� �� ) a4n,-�2j Debra J. Adams C C, City Clerk CO 188/Ordinance No.637 iivoimooi Resolution No. 00-192 Page 3 of 8 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 CITY COUNCIL CITY OF RANCHO CUCAMONGA 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 City of Rancho Cucamonga and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21574 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF RANCHO CUCAMONGA BY BY KENNETH W. MARZION, CHIEF PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Date PERS-CON-59(Rev 7/96) Resolution No. 00-192 Page 4 of 8 PLEASE DO NOT SIGN -EXHIBIT ONLY City of Rancho Cucamonga -2- September 11, 2000 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: 1) Change in the Present Value of Benefits S 0 2) Change in the Unfunded Accrued Liability S (2.063.499) 3) Change in the employer rate 0000% 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 11.904 2) Unfunded Liability Payment (annually for 5 years) S (11.904) 3) Total First Year Cost S 0 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 Ordinance. 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. 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 ORDINANCE. ORIGINAL SIGNATURES ARE REQUIRED 1. Resolution of Intention, original or certified copy 2. Certification of Governing Body's Action (CON-12), original. Resolution No. 00-192 Page 5 of 8 PLEASE DO NOT SIGN - EXHIBIT ONLY CaIPERS EXHIBIT California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Rancho Cucamonga As*. 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 January 28, 1978, and witnessed January 26, 1978, and as amended effective September 22, 1980, November 16, 1981, September 26, 1988 and April 4. 1996 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 11 are hereby stricken from said contract as executed effective April 5, 1996, and hereby replaced by the following paragraphs numbered 1 through 11 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. Resolution No. 00-192 Page 6 of 8 PLEASE DO NOT SIGN - EXHIBIT ONLY DO NOT SIGN �Fyu �,,. „Y„ 2. Public Agency shall participate in the Public Employees' Retirement System from and after January 28, 1978 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. 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. SAFETY EMPLOYEES. 5. 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). 6. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20042 (One-Year Final Compensation). b. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. C. Section 21151 (Industrial Disability Retirement For Local Miscellaneous Members). d. Section 21427 (Improved Nonindustrial Disability Allowance) e. Section 21574 (Fourth Level of 1959 Survivor Benefits). Resolution No. 00-192 Page 7 of 8 PLEASE DO NOT SIGN - EXHIBIT ONLY f. Section 20614, Statutes of 1978. (Reduction of Normal Member Contribution Rate). From September 22, 1980 and until November 16, 1981, the normal local miscellaneous member contribution rate shall be 0%. Legislation repealed said Section effective September 29, 1980. g. Section 20690, Statutes of 1980, (To Prospectively Revoke Section 20614, Statutes of 1978). 7. Public Agency, in accordance with Government Code Section 20834, shall not be considered an "employer" for purposes of the Public Employees' Retirement Law. Contributions of the Public Agency shall be fixed and determined as provided in Government Code Section 20834, and such contributions hereafter made shall be held by the Board as provided in Government Code Section 20834, 8. 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 of said Retirement System. 9. 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. 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. 10. 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. 00-192 Page 8 of 8 PLEASE DO NOT SIGN - EXHIBIT ONLY 11. 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 CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF RANCHO CUCAMONGA BY BY KENNETH W. MARZION, CHIEF PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk AMENDMENT PERS-CON-702A(Rev 8\96)