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Home My WebLink About683 - Ordinances ORDINANCE NO. 683 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO PROVIDE SECTION 21354.4 (2.5% @ 55 FULL FORMULA) FOR LOCAL MISCELLANEOUS MEMBERS A. RECITALS 1. The City of Rancho Cucamonga agreed to provide Section 21354.4 (2.5% @ 55 Full Formula) for local miscellaneous members. 2. On June 20, 2002, the City adopted a resolution of intention to amend its contract with the California Public Employees' Retirement System to provide Section 21354.4. 3. The California Public Employees' Retirement System requires the City to amend its contract whenever it provides new benefits such as Section 21354.4. B. ORDINANCE NOW, THEREFORE, the City Council of the City of Rancho Cucamonga does hereby ordain as follows: SECTION 1: The City Council hereby authorizes an amendment to the contract between the City Council of the City of Rancho Cucamonga and the Board of Administration of the California Public Employees Retirement System, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full. SECTION 2: The City Council hereby authorizes, empowers, and directs the Mayor to execute said amendment for and on behalf of the City of Rancho Cucamonga. SECTION 3: This Ordinance shall take effect on December 1,2002. The ordinance shall be published in the Inland Valley Daily Bulletin, a newspaper of general circulation in the City of Rancho Cucamonga, within 15 days of its passage. Ordinance No. 683 Page 2 of 6 PASSED, APPROVED, AND ADOPTED this 17th day of July 2002. AYES: Alexander, Biane, Curatalo, Dutton, Williams NOES: None ABSENT: None ABSTAINED: None William ATTEST: ~et~ra J ~,dams, ~(t, lC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Ordinance was introduced at a Regular Meeting of the Council of the City of Rancho Cucamonga held on the 20th day of June 2002, and was passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the 17~h day of July 2002. Executed this 18th day of July 2002, at Rancho Cucamonga, California. I~el~ra J. Adams~.,l~, City Clerk Ordinance No. 683 Page 3 of 6 Call>ERS 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 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, April 5, 1996 and November 2, 2000 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 November 2, 2000, 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. 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 previsions 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 No. 683 Page 4 of 6 PLEASE DO NOT SIGN "EXHI5. , 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 21354.4 of said Retirement Law (2.5% at age 55 Full). [Note that a future legislative proposal is being considered which could amend Government Code Section 21354.4 to make the 2.5% at 55 benefit formula applicable to both active members and inactive members who have not yet retired. If enacted, this amendment could have an effect on your agency's actuarial valuation and employer contribution rates in future years.] 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). 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. Ordinance No. 683 Page 5 of 6 PL -ASE DO NOT SIGN "EXHi31T ONLY" 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 "employeF' 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. Ordinance No. 683 Page 6 of 6 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 C~lt'~t' COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM ..4[~'Y OF RANCHO CUCAMONGA BY ,4'~'~ B~ __ KENNETH W. MARZION, CHIEF ,"vv~- PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVI.(~ DIVISION .... PUBLIC EMPLOYEES' RETIRE~J~::~"I~ SYSTEM ,.~. ' Clerk AMENDMENT PERS-CON-702A (Rev. 8~96)