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HomeMy WebLinkAbout2012-03-19 Ordinance 5147follows: Ordinance No. 5147 Ordinance of the Council of the City of Palo Alto Authorizing an Amendment to the Contract between the Board of Administration of the California Public Employees' Retirement System to Implement a Second Tier of Retirement Benefits for New Fire Employees The Council ofthe City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as That an amendment to the contract between the City Council of the City of Palo Alto and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit "A," and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City Council, City of Palo Alto, is hereby authorized, empowered, and directed to execute said amendment for and on behalf of the City of Palo Alto. II II II II II II II II II II II II 120228 sh 8261831 1 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 entering membership in the miscellaneous classification on or prior to July 17, 2010, age 60 for local miscellaneous members entering membership for the first time in the miscellaneous classification after July 17, 2010, age 50 for local police members and for those local fire members entering membership in the fire classification on or prior to the effective date of this amendment to contract and age 55 for local fire members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 2. Public Agency shall participate in the. Public Employees' Retirernent 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 (CaIPERS) and its trustees, agents and employees, the CalPERS Board of Administ~ation, 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 attorneys 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-CaIPERS retirement program. (b) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than 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. (d) Public Agency's election to file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code· and/or Public Agency's election to reject this Contract with the CalPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. (g) Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 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 ILiFEGUARD; RECREATION LEADER;. AND POOL MANAGER HIRED ON OR AFTER OCTOBER 14, 1999. 6 .. 7. 8. 9. 10. 11. The percentage of final compem~ation to be provided for each year of credited prior and current service as a 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). The percentage of final compensation to be provided for each year of credited prior and current service as a 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 (2.7% at age 55 Full). The percentage of final compensation to be provided for each year of credited current service as a local miscellaneous member entering membership for the first time 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). The percentage of final compensation to be provided for each year of credited prior and current service as a local police member and for those local fire members entering membership in the fire classification on or prior to the effective date of this amendment to contract shall· be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). The percentage of final compensation to be provided for each year of credited current service as a local fire member entering membership for the first time in the fire classification after the effective date of this amendment to contract shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 FUll). 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 all local miscellaneous members,local police members and for those local fire members entering membership on or prior to the effective date of this amendment to contract. 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). j. Section 20692 (Employer Paid Member Contributions Converted to Payrate During the Final Compensation Period) for local miscellaneous members and 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 the effective date of this amendment to contract 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 local miscellaneous members entering membership for the first time 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 local fire members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 12. 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. 13. 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. 14. 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. 15. 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.