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HomeMy WebLinkAboutRESO 9747DocuSign Envelope ID: 501 E1 FC8-EE8D-458A-81 FE-A733F32C5218 Resolution No. 9747 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF PALO ALTO 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 20516 (Employees Sharing Additional Cost) of an additional 0.5% for local miscellaneous members in the Service Employees International Union Local 521, 0.5% for local miscellaneous members in the Unrepresented Management group and 1.5% for local safety members in the Unrepresented Safety Management group. 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 Pub~ic Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. April 2, 2018 Date adopted and approved (Amendment) CON-302 (Rev. 3/9/2016 re) By:~~-~ Pre"i Officer Mayor Title DocuSign Envelope ID: 501 E1 FC8-EE8D-458A-81 FE-A733F32C5218 A 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 M rem= 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, December14, 1970, February1, 1974,JulyB, 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, October 20, 2001, March 9, 2002, September 16, 2006, January 6, 2007, July 17, 2010, June 8, 2012, December 7, 2012 and October 14, 2017 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 th'rough 18 are hereby stricken from said contract as executed effective October 14, 2017, and hereby replaced by the following paragraphs numbered 1 through 18 inclusive: OocuSign Envelope ID: 501E1FC8-EE8D-458A-81FE-A733F32C5218 PLEASE DO NOT SIGN "EXHlBlT ONLY" 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless othetwise 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 1 2012, age 55 for classic local fire members entering membership for the first time in the fire classification after June 81 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, provisions1 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. DocuSign Envelope ID: 501 E1 FC8-EE8D-458A-81 FE-A733F32C5218 PLEASE DO NOT SIGN "EXHIBIT 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, 2017 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}. DocuSign Envelope ID: 501 E1 FCB-EEBD-458A-81 FE-A733F32C5218 PLEASE DO NOT SIGN 11 EXHIBIT ONLY" 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). 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. DocuSign Envelope ID: 501E1FC8-EE8D-458A-81FE-A733F32C5218 . PLEASE DO NOT SIGN "EXHlBlT ONLY" 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 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 (11Local 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 20325 (Optional Membership for Part-Time Employees). 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. DocuSign Envelope ID: 501E1FCB-EEBD-45BA-B1FE-A733F32C521B ,. PLEASE DO NOT SIGN "EXHIBIT ONLY" 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. n. Section 20516 (Employees Sharing Additional Cost): From October 14, 2017 and until the effective date of this amendment to contract, .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 the effective date of this amendment to contract, 1 % for local miscellaneous members in the Service Employees International Union (SEIU) Local 521. From and after the effective date of this amendment to contract, 0.5% for .local miscellaneous members in the Unrepresented Management group. From and after the effective date of this amendment to contract, 1.5% 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 (11Cost 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 uemployer" 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.