HomeMy WebLinkAbout2018-09-10 Ordinance 5449DocuSign Envelope ID: CD366CB1-3F3D-499A-A203-2C1342230COE
• CalPERS
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 Palo Alto
----· ....... -~...ui;::::::=-:
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
1, 1942, and witnessed March 9, 1942, and as amended effective January 1, 1948, April
1, 1949, January 1, 1952, July 1, 1954, February 1, 1956, November 1, 1964, September
23, 1968, December 14, 1970, February 1, 1974, July 8, 1974, January 5, 1975, April 1,
1975, September 11, 1977, July 1, 1979, February 21, 1981, July 11, 1981, December
12, 1981, June 12, 1982, September 17, 1983, November 12, 1983, February 11, 1991,
October 15, 1994, December 10, 1994, February 27, 1996, October 15, 1998, January 1,
1999, October 14, 1999, July 1, 2000, October20, 2001, March 9, 2002, September 16,
2006, January 6, 2007, July 17, 2010, June 8, 2012, December 7, 2012, October 14,
2017 and June 9, 2018 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 18 are hereby stricken from said contract as executed
effective June 9, 2018, and hereby replaced by the following paragraphs numbered
1 through 18 inclusive:
OocuSign Envelope ID: CD366CB1-3F3D-499APA2LtAgE2LJUENUT SIGN "EXHIBlT QNLY"
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 classic
local miscellaneous members entering membership in the miscellaneous
classification on or prior to July 17, 2010, age 60 for classic local
miscellaneous members entering membership for the first time in the
miscellaneous classification after July 17, 2010, age 62 for new local
miscellaneous members, age 50 for classic local fire members entering
membership in the fire classification on or prior to June 8, 2012 and for
those classic local police members entering membership in the police
classification on or prior to December 7, 2012, age 55 for classic local fire
members entering membership for the first time in the fire clas~ification after
June 8, 2012 and for those classic local police members entering
membership for the first time in the police classification after December 7,
2012 and 57 for new local safety members
2. Public Agency shall participate in the Public Employees' Retirement System
from and after January 1 , 1942 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 (CalPERS) and its trustees, agents
and employees, the CalPERS 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 attorney 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-CalPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' existing
retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than CalPERS
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.
OocuSign Envelope ID: CD366CB1-3F3PLEA~3~CtJLJ2NlJEI ~lGN "EXHlBlT ONLY"
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:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
local miscellaneous members).
5. 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. PROJECT PROFESSIONAL; PROJECT MANAGER; PROJECT
TECHNICIAN; PROJECT ASSISTANT; PROJECT LABORER;
LANDSCAPE MAINTENANCE TRAINEE; LIBRARY PAGE;
WATER SAFETY INSTRUCTOR /LIFEGUARD; RECREATION
LEADER; AND POOL MANAGER HIRED ON OR AFTER
OCTOBER 14, 1999.
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
in employment before and not on or after January 6, 2007 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 classic local miscellaneous member
in employment on or after January 6, 2007 and not entering membership
for the first time in the miscellaneous classification after July 17, 2010 shall
be determined in accordance with Section 21354.5 of said Retirement Law.
8. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member entering
membership for the first time with this agency in the miscellaneous
classification after July 17, 2010 shall be determined in accordance with
Section 21353 of said Retirement Law (2% at age 60 Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said Retirement
Law (2% at age 62 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local fire member entering
membership in the fire classification on or prior to June 8, 2012 and for
those classic local police members entering membership in the police
classification on or prior to December 7, 2012 shall be determined in
accordance with Section 21362.2 of said Retirement Law (3% at age 50
Full).
DocuSign Envelope ID: CD366CB1-3F3D-499A-A203-2C1342230COE JT S\GN "EXH\B\T ONLY" r LC/""\ul-UV , ..
11. The percentage of final compensation to be provided for each year of
credited current service as a classic local fire member entering membership
for the first time with this agency in the fire classification after June 8, 2012
and for those classic local police members entering membership for the first
time with this agency in the police classification after December 7, 2012
shall be determined in accordance with Section 21363.1 of said Retirement
Law (3% at age 55 Full).
12. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
13. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits).
b. Section 21222.1 (One-Time 5% Increase -1970). Legislation
repealed said Section effective January 1, 1980.
c. Section 21222.2 (One-Time 5% Increase -1971). Legislation
repealed said Section effective January 1, 1980.
d. Section 21319 (One-Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971 ). Legislation
repealed said Section effective January 1, 2002.
e. Section 21325 (One-Time 3% to 15% Increase For Local
Miscellaneous Members and Local Safety Members Who Retired or
Died Prior to January 1, 1974). Legislation repealed said Section
effective January 1, 2002.
f. Section 20042 (One-Year Final Compensation) for classic local
miscellaneous members, those classic local fire members entering
membership on or prior to June 8, 2012 and for classic local police
members entering membership on or prior to December 7, 2012.
g. Section 21317 (One-Time 15% Increase for Certain Local Safety
Members Who Retired for Service Retirement). Legislation repealed
said Section effective January 1, 2002.
h. Section 21326 (One-Time 1% to 7% Increase For Local
Miscellaneous Members and Local Safety Members Who Retired or
Died Prior to July 1, 1974). Legislation repealed said Section
effective January 1 , 2002. ·
i. Section 21024 (Military Service Credit as Public Service).
DocuSign Envelope ID: CD366CB 1-3F3D-49~-~~~~§ ~2f:~o~ ~ :. T S { G N 11EXH18 \T Q N LY"
j. Section 20692 (Employer Paid Member Contributions Converted to
Payrate During the Final Compensation Period) for classic local
miscellaneous members and classic local safety members in the
following groups:
Local miscellaneous members who are Management and
confidential employees;
Local police members who are Management and confidential
employees;
Local fire members entering membership on or prior to June 8, 2012
who are Management and confidential employees;
Local miscellaneous members represented by local 715, SEIU AFL-
CIO and CLC; and
Local police members represented by the Palo Alto Peace Officer's
Association.).
k. Section 20434.5 (•Local Fire Fighter• shall include any officer or
employee of a fire department employed to perform hazardous
materials services as described in Government Code Section
20434.5).
I. Section 21548 (Pre-Retirement Option 2W Death Benefit) for local
fire members only.
m. Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 Full formula) is applicable to classic local miscellaneous members
entering membership for the first time with this agency in the
miscellaneous classification after July 17, 2010.
Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three-
Year Final Compensation) without Section 20692 (Employer Paid
Member Contributions Converted to Payrate During the Final
Compensation Period) are applicable to classic local fire members
entering membership for the first time with this agency in the fire
classification after June 8, 2012.
Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three-
Year Final Compensation) are applicable to classic local police
members entering membership for the first time with this agency in
the police classification after December 7, 2012.
DocuSign Envelope ID: CD366CB1-3F3D-499A-A203-2C1342230COE
PLEASE DO NOT SIGN "EXHIBIT Ol~LY"
n. Section 20516 (Employees Sharing Additional Cost):
From October 14, 2017 and until June 9, 2018, .5% for local
miscellaneous members in the Service Employees International
Union (SEIU) Local 521.
From and after October 14, 2017, 3% for local safety members in the
International Association of Fire Fighters, Palo Alto Fire Chief's
Association, Palo Alto Peace Officers' Association and Palo Alto
Police Management Association.
From and after June 9, 201 B, 1 % for local miscellaneous members
in the Service Employees International Union (SEIU) Local 521.
From June 9, 2018 and until the effective date of this amendment to
contract, .5% for local miscellaneous members in the Unrepresented
Management group.
From June 9, 2018 and until the effective date of this amendment to
contract, 1.5% for local safety members in the Unrepresented Safety
Management group.
From and after the effective date of this amendment to contract, 1 %
for local miscellaneous members in the Unrepresented Management
group.
From and after the effective date of this amendment to contract, 3%
for local safety members in the Unrepresented Safety Management
group.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall not
exceed the Employer Normal Cost Rate, as that rate is defined in the
CalPERS Actuarial Valuation for the relevant fiscal year. If the Cost
Sharing Percentage will exceed the relevant Employer Normal Cost
Rate, the Cost Sharing Percentage shall automatically be reduced to
an amount equal to, and not to exceed, the Employer Normal Cost
Rate for the relevant fiscal year.
14. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
September 11 , 1977. 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.
DocuSign Envelope ID: CD366CB1-3F3D-499A-A203-2C1342230COE
16. Public Agency shall also contribute to said Retirement System as follows:
a. 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.
b. 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.
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 ~effective on the __ day of -------__ _
BOARD OF ADMINISTRAlf~ CITY COUNCIL .};.
PUBLIC EMPLOYEES' Rfir1REMENT SYSTEM CITY OF PALO AL TO ~ ~.§}" t--...c:s
~~ §j-
BY /-<) BY ~
ARNITA PAIGE~@f.HEF PRESIDING OFFIC~
PENSION CON:"!~ACTS AND PREFUNDING r~.
PROGRAMS$t\JISION ~
PUBLIC EMP.L~YEES' RETIREMENT SYSTEM ~ ~' &-~~ --------....c-~~--------~ ~ W~~D~ ,«; ~ ~ v Attest: {_=>
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AMENDMENT CalPERS ID #6373437857
PERS-CON-702A
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Clerk