HomeMy WebLinkAboutStaff Report 249-10TO: "HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE: May 17,2010 CMR: 249:10
REPORT TYPE: CONSENT
SUBJECT: Adoption of (1) Resolution of Intent and (2) Ordinance to Amend the
Contract Between the Board of Administration of the California Public
Employees' Retirement System (CaIPERS) and the City of Palo Alto to
Implement California Government Code Section 20475 (2.0% @ 60
Full Formula) Providing a Second Tier of Different Level of Benefits
for New Miscellaneous Employees
RECOMMENDATION
Staff recommends that Council adopt the attached Resolution of Intention of the Council
of the City of Palo Alto stating its intent to amend the contract between the California
Public Employees' Retirement System (CaIPERS) and the City of Palo Alto to implement
Section 20475 (2.0% @ 60 Full Formula) providing a second tier of different level of
benefits for new Miscellaneous employees; and an ordinance to authorize the
Amendment.
BACKGROUND
On October 26, 2009, the City Council approved Resolution #8994 which imposed the
City's Last, Best and Final offer to employees represented by Service Employees'
International Union (SEIU), Local 521. The terms of that resolution included a change
from the current CalPERS retirement formula 2.7% @ 55 Full Formula to the 2.0% at 60
retirement formula for new hires. The Council approved the same change for managers
and other professionals in the 2009-10 Management and Professional compensation plan.
The attached resolution is necessary to implement the contract amendment as required by
PERS rules. The first step in the process is for the Council to adopt a Resolution of
Intent and conduct a first reading of the ordinance amending the contract. Once the final
ordinance is adopted and becomes effective, the contract amendment will go into effect
the following payroll date. Based on the current schedule, the effective date of the
contract will be July 17,201 O.
CMR: 249:10 Page 1 of3
This benefit change will only affect new hires and not current, active employees in the
SElU bargaining unit or the current employees in the Management and Professional
group who are all combined and designated by CalPERS as the Local Miscellaneous
employees group. This benefit shall consist of the City of Palo Alto paying a percentage
of the normal member contributions as described in relevant labor policies and
agreements. This change is a result of the City's continuing effort to lower the growing
cost of employee benefits.
DISCUSSION
This change in pension fonnula for miscellaneous new hires is expected to gradually
decrease the City's retirement benefit expense. Currently under the 2.7% @ 55 formula,
an employee retiring at age 55 with 25 years of service can, for example, retire with a
pension equal to 67.5% of final salary. Upon implementation of this amendment, under
the new formula, a 60 year old employee with 25 years of service will be able to retire
with a pension equal to 50% of final salary.
The cost analysis provided by CalPERS states that while there will be no immediate
employer contribution rate impact from this amendment, ultimately, the City's normal
cost will decrease as new hires in the lower formula begin to replace existing employees
in the higher formula who retire or otherwise tenninate. The approximate difference in
normal cost is expected to be 3.3%. Thus, if an employee retires at age 60, this employee
will be entitled to an annual pension of 2% of his or her salary multiplied by the number
of accumulated years of service.
RESOURCE IMPACT
With the implementation of a 2% @ 60 retirement formula, the City will gradually realize
pension contribution savings as new employees replace those now employed under the
2.7% @ 55 formula. Actuarial Information provided by CalPERS indicates that after
implementing this change, the City can expect $0.24 million in savings in 2010-11 and
$0.43 million in 2011-12, with total savings over the first ten years adding to $7.8
million. These estimates assume a 6.6% annual retirement rate (the average rate for 2006-
08), and a 6% non-retirement termination rate (the actual average rate for 2007-09). The
estimates also assume that in 20 I 0-11 Miscellaneous employees Vl'ill decline in number
by about 5%, as proposed in the draft 2010-11 budget, and that total Miscellaneous Full
Time Equivalents (FTEs) will remain the sanle for the next ten years.
CMR: 249:10 Page 2 of3
POLICY IMPLICATIONS
This request supports the Finance Committee's recommendation for staff to bring
alternatives forward on how to slow the increasing cost of employee benefits and lessen
the impact on other City priorities, and is consistent with existing City policies.
ENVIRONMENTAL REVIEW
This action does not require an environmental review.
ATfACHMENT
1. Resolution of Intention of the Council of the City of Palo Alto to Approve an
Amendment to Contract with the Board of Administration California Public
Employees'Retirement
2. Ordinance of the Council of the City of Palo Alto Authorizing an Amendment to the
Contract with the Board of Administration ofthe California Public Employees'
Retirement System
. PREPARED BY: Sandra T.R. Blanch, Assistant Director, Human Resonrces
DEPARTMENT HEAD: tfM;J..Il...-J. 1< .. IPtuI11 If;'" ~tUJJ1LtJl C~
RUSSELL CARLSEN
Director of Human Resonrces
CITYMANAGE~APPROVAL:~-P;l. Ij v<
JA KEENE \
C . I
1 anager "'"
CMR:249:1O Page 3 00
** NOT YET APPROVED **
Resolution No. -:c---::-: Resolution oflntention of the Council of the City of Palo Alto
to Approve an Amendment to Contract with the Board of
Administration California Public Employees' Retirement
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, the City of Palo Alto ("City") contracts with the Public Employees'
Retirement System and desires to amend its contract; 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
follows:
WHEREAS, the following is a statement of the proposed change:
To provide section 20475 (Different Level of Benefits). Section
21353 (2% @ 60 Full formula) is applicable to local miscellaneous
members hired into a miscellaneous classification after the
effective date of this amendment to contract.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as
SECTION 1. The City Council hereby gives notice of its intention to approve an
amendment to the contract between the City and the Board of Administration of the Public
Employees' Retirement System, a copy of said amendment being attached hereto, as Exhibit "A"
and by this reference made a part hereof.
II
II
II
II
II
100;12 sh 8261314
** NOT YET APPROVED **
SECTION 2. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy City Attorney City Manager
Director of Human Resources
Director of Administrative Services
100512 sh 8261314 2
j
•
CaJPERS
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
-------+-------
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, October 20, 2001, March 9, 2002, September 16, 2006 and January 6, 2007 which
provides for participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective
January 6, 2007, and hereby replaced by the following paragraphs numbered 1
through 15 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 entering membership in the miscellaneous
classification on or prior to the effective date of this amendment to contract, age
60 for local miscellaneous members entering membership for the first time in
the miscellaneous classification after the effective date of this amendment to
contract and age 50 for local safety members.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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 (CaIPERS) 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 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 Califomia 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 CalPERS' 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.
PLEASE DO NOT SIGN "fEXHISlr ONI),!I
(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 orto 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. The percentage of final compensation 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).
7. 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 the effective date of this amendment to
contract shall be determined in accordance with Section 21354.5 of said
Retirement Law (2.7% at age 55 Full).
8. 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 the effective date of this
amendment to contract 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 local safety member shall be determined in
accordance with Section 21362.2 of said Retirement Law (3% at age 50 FUll).
PLEASE DO 1\10T SIGN "EXHIBIT ONLY"
10. 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).
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 who are Management and confidential employees;
Local miscellaneous members represented by local 715, SEIU AFL-CIO
and CLC; and
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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 the
effective date of this amendment to contract.
11. 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.
12. 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.
13. 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.
14. 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.
•
B.
15. 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.
This amendment shall be effective on the .; day of _________ .
\,'--\
BOARD OF ADMINISTRATION /G,8ITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYS,:t"EM CITY OF PALO ALTO
/~-{.:,\.'\. ' "'V, . ~\ BY , c.';-,.(2J;'
LORI MCGARTLAND, CH1~\ =
EMPLOYER SERVIC~,JjI"'rSION
PUBLIC EMPLOY~~ETIREMENT SYSTEM
,~~ ~'V
AMENDMENT ER# 14
PERS-CON-702A
..".,..-,-_ ...... __ .. _-------
Clerk
** NOT YET APPROVED **
Ordinance No. ----=--Ordinance of the Council of the City of Palo Alto Authorizing
an Amendment to the Contract with the Board of
Administration of the California Public Employees'
Retirement System
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION I. An amendment to the contract between the 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 as Exhibit "A," and by such
reference made a part hereof as though herein set out in full.
SECTION 2. The City Manager of the City of Palo Alto is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of the City.
SECTION 3.
date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Senior Deputy City Attorney
100512 sh 8261315
This ordinance shall be effective on the thirty-first day after the
Mayor
APPROVED:
City Manager
Director of Human Resources
Director of Administrative
Services
1
CalPERS
EXHIBIT
Califomia
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
---+----
The Board of Administration, California Public Employees' Retirement System, hereinafter
referred to as Board, and the goveming 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, October 20, 2001, March 9, 2002, September 16, 2006 and January 6, 2007 which
provides for participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective
January 6, 2007, and hereby replaced by the following paragraphs numbered 1
through 15 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 entering membership in the miscellaneous
classification on or prior to the effective date of this amendment to contract, age
60 for local miscellaneous members entering membership for the first time in
the miscellaneous classification after the effective date of this amendment to
contract and age 50 for local safety members.
PLEASE DO NOT SIGN "EXHIBIT Or~LY"
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 Califomia
Public Employees' Retirement System (CaIPERS) and its trustees, agents and
employees, the CalPERS Board of Administration, and the Califomia Public
Employees' Retirement Fund from any claims, demands, actions, losses,
liabilities, damages, judgments, expenses and costs, including but not limited to
interest, penalties and attomeys 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 Centrad 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 Califomia 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 CalPERS' 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.
I
4.
(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.
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 III FE GUARD; 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 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 local miscellaneous member in employment on or
after January 6, 2007 and not entering membership for the first time in the
miscellaneous classification after the effective date of this amendment to
contract shall be detenmined in accordance with Section 21354.5 of said
Retirement Law (2.7% at age 55 Full).
8. 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 the effective date of this
amendment to contract shall be detenmined 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 local safety member shall be determined in
accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full).
j
j
~
10. 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).
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 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
FuJI formula) is applicable to local miscellaneous members entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract.
11. 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.
12. 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.
13. 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.
14. 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.
B.
15. 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.
This amendment shall be effective on the _-,--'-day of __________ .
" \
BOARD OF ADMINISTRATION .\ ,:>6'ITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT S,(;?J.EM CITY OF PALO ALTO
"\' .;.<~J<" ~
BY <",.i~f· ~ '.',\
LORI MCGARTLAND, CH@O \ $
EMPLOYER SERVIC~JlW'ISION
PUBLIC EMPLOY~~.e~ETIREMENT SYSTEM
c~ «) \\~
AMENDMENT ER# 14
PERS-CON·702A
Clerk