HomeMy WebLinkAbout0561.000November 19, 1990
THE HONORABLE CITY COUNCIL
Palo Alto, California
~,
6
MenOmept to DRS Co.atract to Provide 8ectioll 209l0_~3 (J(ilJtar,x
Service C •• tit a. Public serviee) tor Local Kiac911 anecus Members
Members of the Council:
Report in Brief
As part of the compensation pi!l,ckaqe for Management and Confidential
Personnel and Council Appointees for 1990-91, Council approved the
addition of an amendment to the City' 5 contract with the Public
Employees Retirement System (PERS) to add the provision for
-Military Service credit as PUblic Service.-This report recom
mends appro'"al of the necessary documents to add this provision fol.
Miscellaneous Employees.
Background
Onder PERS regulations, the City may amend it's contract to add
section 20930.3 to permit employees to purchase up to (our years
of service credit for any continuous active military or merchant
marine service prior to employment. Since the employee must pay
the cost of both the employee and employer contribution rates plus
interest l there is no cost to the city in adding th~s provision to
the contract.
Under the provisions of the PBRS Contract, a member ~ho elects to
'Utilize Section 20930.3 must contribute an amount equal to the
cont~ibutlon for current and prior service that the employee and
the employer would have made with respect to that period of
serv1c3
PER~ calculates the member's payznent based_ upon the employer's
contribution rate at the time of the member's election, and the
member's compensation and contribution rate at the first period of
s.ervice with the emp~oyer after the -:military service~ Interest
(8.5' compounded annually) on both employer and employee contribu
tions are then calculated from. the date of membership with the
current employer to date of the member's election, and included in
~he member cost. The member may pay for the service in a lump sum
or by monthly payments not to exceed 96 months. This benefit will
CMR:S61:C
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page Two
apply only to uployees 'Who are in active status after the
effective date of the contract amendment.
ReCOmmendation
statt recommends that council adopt the .&.ttached Resolution of
Intention and introduce the attached Ordinance for first reading
so that t.."te City's contract 'With PERS may be amendea to include
section 20930.3 (Military service credit as Public Service) for
local Miscell~neous aeabers only.
In order tOo comply with PERS procedures, final reading of the
ordinance will be delayed until at least 20 days following adoption
of the Resolution ot Intention.
Benefit&
~O~~DS~. sources
r --",", FLEKING
istant City Man
Attachments
QIR:561:0
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RESOLUTrON NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
TO APPROVE Ali AKEIIDKENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CIT,
OF PALO ALTO
The Council of the City of Palo Alto does RESoLVE as
folloWS:
WHEREAS, the Public Employees' Re~irement Law permits the
participation of public aqencies and their employees in the Public
Employees' Retirement System by the execution of a contract, and
sets forth the procedure by which sai~ public agencies may elect to
subject themselves and their employees to amendments to said Law;
and
WHEREAS, one of the steps in the procedure to ame~d this
contract is the a~tion by t..'1e qoverning body of the pllblic agency
of a resolution qivinq notice of its intention to apprcve an
a:menaent to said contract, ,,'hieh resolution shall contain a
summary of the change propose~ in said contract; and
WHEREAS, the follOlf'inq is a statement of the proposed
chanqe:
To provide section 20930.3
credit as Public Service) for
members only.
(Military Service
local miscellaneous
NOW, THEREFORE# the Council of the city of Palo Alto ooes
RESOLVE as follows:
SECTION 1. The City Council of the city of Palo Alto does
hereby qiv9 notice of intention to approve an amendment to the
contract between the City of Palo Alto and the Board of Administra
tion of the Public Employees' Retirement system, a copy of saio
ame.ndment being attached hereto, as -Exhibit A-and by this
reterenee made a part bereof~
SECTION 2. The City COW'lcil finds that this is not a
project under the California Environmental Quality. Act# and
therefore, no enviror~~~tal impact assessment is necessary.
INTRODUCED AND Pl\SSED:
AlCES:
IIOES :
ABSTENTIONS:
ABSEN'!':
1
•
•
ATTEST:
city Clerk
APPROVED AS TO FORM:
s.nior Aasi5tAnt City Attorney
APPROVED:
cIty Manaqer
Director or FInance
oirector of HUman Resources
o
APPROVED;
Mayor
2
/
COP r •••
~ YO CON"I"RAC'J' """"""' .....
CI'1"I' or PALO AL'!'O
!be 8o&~d ot ~lnlstratjon, ~bljc EAployees' Retirement Sy5t~m, hereinafter
r.fe~r~ to as Boara~ ana the goyetning body of above publ!e ag~ney.
be-rein.lft"'" re:f~rred to a. Public Agency. ~I.·dng entered into I!t contucc
.ffective January 1, 1942, and vitnes5ed ~Areh '. 1942. and &5 amended
.ffective Jan~.ry 1. 194B~ Aprll I, 19.', ~anuary 1. 1952, ~uly I, 1954.
Feb{~.ry 1. 1956. Roveaber 1, 1964, S.pte~b.r 23, 1968, December 1«, 1970.
7ebruart I, 1974. July B. 1974, ~.nu.[y S, 1975, April 1. 1915, SEptember 11t
1!11, July 1, 1979. February 21, 1961, July )1, 1931, Oece~ber i2, 19B1, Jur.e
12, 1982, Sp.pteaber 17, 1963 and Nove_ber 12. 198J, which pro~ides fo~
pactIc1patjQD of Public Agency in aald syst.m, Board and Public A~ency hereby
agree as follows:
A, Paragraphs I through 11 ale tiereb)l strick,,!!l frOIl! sajd contract as executed
eff.ctive November 12. 1983. end hereby replaced by the following
paragraphs Duebeled I through 12 inclu5ive~
I, All verds and teras u.ed herein which are defined in the P~biic
Baploye~s' Retire.ect La~ 5hal! bave the meanj~g as defined therei~
u~less other~i5e speclfically prOVided. -Nor .. l retirement age-
.hall !'lean age 60 fo-r local .isc:ellaneous member. and age ~Q for local
safety members.
2. Public Agency shall P4rticipate in the Public Employees' Retirement
syate. fro~ and after J~nuary 1, 1~42 making its ~.ployee$ as
her~inafter provide6, ae~bers of said System s~bject to all provisions
of the Public Em~loyee5' Ret:re~ent Law except auch ~s epply only on
~l.etion of B contracting a3eney and are not provid~d for berein and
to all amendments to said Law be.c-eafler enacted except tbose~ I • .'hic~ by
e~press pro~lsio~s thereof. apply only on the ~lection of a
contracting a9~ncy.
3. Eaployees of Public Ag~ncy in the following classes shall become
~ebers of said Retf~ement S~ste~ except such in each such class ~5
are .xel~dea by l&~ or this agreement:
a. Local Pire F19hters lh~rejn referred to as local safety membersJ;
b. toeal Police Officers (belein referred to &5 local saf~ty
ilemb.rsJ J
c. bplcyee5 other tban local safety Ilemt,ers lb.erein referri2d to as
local .1acellaneous members).
..
~ . . COP r • • • o
t. I:n addHion tl';. the -ele.slllliu of lI!.ploye-.s eJl.<::!uded {rOIll ael!l.lJership by
•• 14 Aetirem~nt Law~ the following classeB of e~ployees shall not
bcc~ .embers of said Retire.ent System:
s. The perceota~e of final coepen~ation tc b. provided fo~ each year of
er.dited p~jor a~-d cur~.nt 5ervic~ ~s • local .1sc@11.neou~ .e~b~r
.hAll b. determined in .c~ordance witb Se~tion .1251.13 ¢f said
Retireaent La~ (2\ at age 60 Full).
Tbe perceotage of iinal coapensatioA to b~ provided for each year of
credited prlor and current $ervlce as ~ local safety me5ber shall be
c!.te~mined in accordance with SRcticn 21252.0] of said R*ti[e~ent Lev
(2' at age 50 ~~11).
Pu~lic ~ency elected to be subject to the following optional
p!'ovisions:
e. Sections 21380-21387 (1959 Sur~jvor Renefita, rxcluding Section
21382.2 (Increased 1959 Survivor &erjefits) and Section 213Sl ••
(Tbizd Leyel of 1959 Su:vivor Benefits).
b. Section 21222.1 tSpe~ial 5\ Incr~ase -1970)~ Legislation
£epealed •• id S~ction eff.ctive J.~~.ry 1, 1980.
c. Section 21222.2 (Special 5\ Ine~ease -1971). Legislation
repealed said Section effective Janu4ry l~ 1980.
d. Section 21222.6 (Special l~' Iocreese for Local ~i&c~llaneous
Me_berS).
•• S&ctivn 21222.BS ,Special 3\ -IS' IncreaSe) for or on behalf of
tbose local .ilcellane~s -.abets and local safety .embers who
retired or di~d prior to Januari l~ 197~.
f. Secticn 2002 •. 2 (One-Year Fio.1 Comp~nsationl.
q. Section 21222 •• (Special 15. !~cr •• se for Local Safety Me~bers).
h. Seetion 21222.86 {Special 1\ -'\ Incr~ese) for or on behalf of
those local .iscpil.neous members and local safety _embers who
retired or died prior to J~11 1. 1974.
i. SectloQ 209)0.3 (Military Service Credit as Public Ser9ic~).
Statutes of 1976 for local _lscell.neou5 .. zbers only.
I. Public A?ency. in a~cordance ~ith Government Code Section 20740,
ce •• ed to be an ·e~loyer· for purpose~ of Section 2015' effective co
Sept.aber 11, 19;7. Accumulated contributions of Public Agency shall
be fLxed and deter.ined .s provided in Govern.ent Code Section 20759,
ana accu.ulated contributions tbereAfter shall be held by t~e Board as
provided i~ Gover~nt Code Section 20759.
COpy •••
9. Public Ag~ncy shall contrlbut~ to sai~ Retir~~ent System the
co~tribu~lonE determined by aetu&rial v~lu.tjon. of p~ior I~d future
.etvlce Ijabfll~J'wjtb reap~~t tc loeal .iscellaneous ae~bers and
loe:..l •• fety _embers. of uid Petireeeot Syste!ll.
lO~ Public Agency shall .150 contribut. to 5«id Retire.cnt System as
fcllovs:
&. A reasonable emountr as fixed by the Board~ payable in one in
.t.llment within 60 ~aJs of aate of eontract to cover the COSt5
of adainisterin9 said Syste. as it affects the ~mplcy~es of
Publ1c "gency, not including t.be co~ts of special vel'IJatloT.5 or
of the periodic investlgatlon ana valuatlons required by la~.
b. A reasonable amount. as fl%.d b~ the Board, ~y~~le i~ o~e'in
stall_eDt as the OCC&sjo~s arise, to cover th~ ca5ts of ~pecl.l
valuations on account of ~mploye~s of Publi~ ~gency; and costs of
toe periodic investigation and valuations r~qulrea by law.
11. Contribu.tions r~irea of Puhlic Agency and Hs employees shall be
.ybject to adjuet~nt by Board on account of a.ecd.ents to tbe Publie
tDployees' Retir •• ent Lo~. and on account of the expec1ence under the
Ret1re~nt Syates as determin~d by th~ perioaic inVEstigation and
valuatIon req~ired cy said R~ti~e.ent Law.
12. Contrlbutjons requIred of Publi~ Agency and ita ebployees sh~ll be
paid by Public Age~cy to the Jetize.ent System vithjn fifteen days
after the end of the period to whict said contributions refet or as
aay be pr.Gcribea bF Bo~rd regulation. If ~ore or less than the
correct bOUl'lt ot cor:trib'.;tians is paid for IJny periodl prOp4!r
aaj~&t~ent sh~ll be aade in connect Jon yith subsequent remittances.
Adju.t~Dts on account of error~ in contributions req~ir.d of any
•• ployee aay be .. de by direct payDeots between the e~ployee and the
Board.
B. rbis ~endaent shall be ef£ectiva on the
_____ , U_
BOo\RD OF A!)foUMIS'nATION 'c::.nt:
PUBLIC EMPLOY2'ES' JlET!RDWrr Sll~
~
BY ==:-:===-=="",~".,-::S:,===_ CHlZF~ ~ S~ES DIV1SIQN
PUBLIC EllPLOYUS' _RBMENT S 'f STHIi
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$I
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#
PERS-cotl-"} 02 I /I.MEN1JMEN'1' )
(lev. 5/88,
CITY COUNCIL
0 • .,.""
en! OP PALO
Presidinl3 OffiCe.~
<~ ....
Witness Date ~
Attest:
Clerk
l?
4-
$
eay of
\
.}
•
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING AN A.l(ENDHENT TO THE CON"l'RACT BETWEEN
THE CI'l'Y COUNCIL OF THE CITY OF PALO ALTO AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES I RETIREMENT SYSTEM
The Council of the City of Palo Alto does ORDAIN as
follows:
SEctION 1. That an amendment to the contract petween the
City Council ot the City of Palo Alto and t,he 'Board of
Administration, California Public Employees t Retirement System is
hereby authorized, a copy of said amendment being attached hereto,
marked ·Exhi~it A-, an4 by su~h rete~ence ~ade a part hereof as
though herein set out in full.
SECTION 2. The Kayor-of the city of Palo Alto is hereby
authorized, empowered, and directed to execute said amendment tor
and on beha1f of said Aqency.
SECTION 3. Adoption of tl'lis ordinance does net constitute
a project tor the pu~ses of the California Environmental Quality
Act ("CEQA"I.
GCTION c. This ordinance shall take effect on the thirty
first day a~ter the date of its adoption~
INTROOOCEO:
PASSED:
AYES:
1I0ES:
ABSTENTIONS:
ABSENT,
A'l'l'EST:
City Clerk
APPROVED AS ~'O FORM:
Sr. Asoistant City Attorney
APPROVEO AS TO COwrENT:
Director of Human Resources
90110l~cmOl9Z
APPROVED:
City Manager
.. :,
Gi •• COP ~ • • •
"1IBi'IDMDI'f !'O COImlACJ'
U"J"iIIi .. '!HI
80PaaD OF AIMIIIISYRM'IOtl
O!' ....
DlPLCnD:S I IlB'!'IRIK!:N'J'
MIl "'" eln CCCIICIL
or !'BIf
an OP PALO AL!'D
,--'
o
SYS'l'EII
Tbe Boa&d of A4.1n1~tratio~~ P~blie ~ployees' Retir~~ent SY5tem, bere1nafter
~eterred to as Boara, and t~R gOY.r~iDg body of above public agency,
hereinafter ,ererred to .$ pybllc Agency, having e~tered into a c~ntract
effe;tive January ), 1942~ and w1tne~,ed March 9~ 1942, and ., amended
ettectlvR January 1. 1948, April 1, 1949. J6nuary 1. 1952, J~ly 1, 1954,
pebruary 1. 1955, Rov-.ber 1, 196e, Septe.~er 23, 1968, Dece~er 14, 1970,
rebruary 1, 197«. July 8, 197., January S. 1975. April 1, 1975, Septeaber II,
1977, July 1, 1979. "ebc~arJ 21, 19B1, July 11, 1981. December 12, 1981, June
12, 1982, September 17, 1983 and November 12, 198], which pr~vides for
p4'rticipatjr;m of publie Ageney In said System. Boaca: and P-ubl1c Aqen.cy hereby
agree as follows:
A. Paragraphs 1 througb 11 are hereby stri~k~n frem said contract as executed
.ffeetivoe Rovelilbill'r 12~ U8J~ and 'hereby re-placed by the followln9
paragrap~s nu.bered 1 thrO~;h 12 IncluSlv~:
l~ All w~rds and terms ~6ed beretn which are defined in the Public
EaLployees' BetirellcDt La .... ehell nave the meaning as defiDed therein
unless Othe~ .... ise specifi~ally provided. -Normal retirement age·
shall aean age EO for lccal ~i.cellaneo~s lIember5 and age 50 for local
safety .eabers~
2. Public Agency s~ll participate 1~ the Public Employees' Retir9ment
Syst~ from and after January l~ 1942 .aking its e~ployees as
hereinafter pro~jded, .vmberl of laid System subje~t to all pr~visions
of the Public £aploy~es' Retirement La~ except such as apply only O~
electIon of a cor.tractiog agency and are not provided for herein and
to all .mendments to laid Law bereafter enacted except tho&e. which by
express proYisJons thereof., apply only on the election of a
eontract1n; a9~ney.
3. ~ployees of Pybllc Agency in tbe following classes sball beccr£e
meabera of 5aid Retjreaent Syst~. ~xcept 5~ch jn each such class as
are ~xel~d.~ by la~ or this agree.~nt:
a. Local Fire Fi9~ter. (h~rejn referred to as local safety members}.
b~ Local 20lice Officers (herein zef.r~ed to as local safety
.... be.r5)-;
·c. e.ployees other th~n local safety ae~bers (herein refErred to as
local .iac&llaneous ·eabecl).
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: r,.i .. : .... -..-
-/!'. ...'.-
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COP Y • • •
,. In addition to the classes cf e:p!oye~& excluded from ~embership by
said Rettf •• ent ~w~ the following classes of ~~ploye~s shall not
~coae aeaber. of •• i~ Retire~ent System:
s. The perc~nt.ie of final compensation to be provided for e!cb year of
credited prIor and current service ~s a local _iscellaneou8 me~er
,hall be dete-rEin"d 1r accordence witi'l Section 21:251.13 of uid
Retlr ... nt La~ <2\ at aqe 60 Fu)lJ~
~be pezeentsge of final co~peus&tion to be provided for e~ch year of
credited prior an4 current service as .. local safety member shall be
deter.lned In accordL~ce vith Section 21254.01 of said Retirement La~
l21 at age SO Full).
P1:bl1e Avenel' elected to be &\J.bject to the-fo110'00'1ng opt tonal
provi.s1ons:
.... Sections 21380-21387 (19S9 Sur'W'lvor !k!r.efit5) excluding Se;;:.tion
21382.2 'In~r~a~ed 1959 Survivor Benefits) and Section 21382.4
~Tbird Level of 1959 Survivor B~n.fit.).
b. ~ction 21222.1 {Special 5' Increase -1970). LegislatiDD
£epealed said Section effective Janusry 1. 1~80.
e. Section 21:22.2 (SpeCial 5\ Incre4~e -1971J. Legislation
r-epealed said Section effective January 1, 1980.
d. Section 21222.& {Special 15' Increase for Local M!scellao@ous
MelabltuJ.
e. Sectl~n 21222.85 (SpeCial 3\ -15' Increase) fcr Qr .on behalf .of
those local _iscellaneous .vmbers and local safety ~embers ~ho
r~ti~ed .or aied prior to January 1. 1974.
f. Section 20n2t.2 (One-Ieee Pinal Compensation).
2. ~ection 212:2.4 (Special 15\ Increase for Local Safety MembeIS).
h. Sectioc i1222.86 (Special 1\ -7\ I~cre~sel for or on behalf of
those loeal .iscellaneous .embers and local safety members whO
retlr~ or died prior to July l~ 1974.
i~ Section 209]0.3 (Military Service Credit as Public Service);
statutI's of 197(ji for local miscellaneous laellbe,rs only.
•. Public Agency. In accora.nce ~itb Goyernment Code S .. cti~n 20740.
c.5.e~ to be an -employer-for pUlposes Qf Sect1~n 20759 effective on
SepteMber 11, lt77. Accu~ulated contributions .of Public Agency 5hall
be fl~ed and det~r.jned as provided in Government Code Section 20759.
and accu.ul.ted contributions ther •• fteI &hall be held hi the Board .&
provided in Governaeet Code Section 20759.
•
"::"
Q •• COP Y • •• o
,. PYblic Agency shall contribute to ~4id Retire •• Dt System the
contributions detel¢ined by .ct~&tjal valuations ot prior and future
"'rvict! li .. bility'With respect to 1;:;. ".11 .iscellaneou.s ae!llbers and
leeal .Afe~y ~~e[s of sald Retlreueot Syste •.
10. Publlc Agency sh.al1 aho contrib'Jte to sajd Reti.ceaent Systel:il as
follows ~
a. A reasonable .~ouot. a. fIzed by the Board, payable in one io
.tall_ent ~ithi~ 60 days of date of contcact to cover the costs
of a~.inisterj.n~ said Syst~ •• 5 It .!feets tbe .aployees of
~blic Agency, n~t inclu~inq the coats of 5~cjal valuations or
of tbe periodic inve~tigation and valuotions required by la~.
b. A reasonable aDount, as fix~d by the Beard, payable in one in
stallaent as the oecas!ons ari~e, to cov~r the C06tS of special
valuations on account uf employees of P~blic Agency. and ccsts of
the periodic iD~e5tlg~tlo~ and valuations required by law.
11. Contritutions r~uired of Public Ag~ncy and its employees sball be
SUbject to &djustment by Board on account ..:If aaend.lI!:nts to the Public
Eaployees~ Retire_ent Law, ana an account of tbe ex~rience unde~ the
Retire.ent System as ~et.r.ined by t~e periodic inve~tig4tion &nd
valuation required by sai~ Retirement LAw.
12. Contributions required of P\lblic: "gent:y and its employel!s shall be
paid by Public Agenc:y to the Retirement Syst~ witbin fifteen d~ys
after t.he end o·f the period to ",bieh said contributions refer or as
.. y be pr~8eribed by Soard regulation. If more ar le55 than tbe
correc~ amount of c:ontributicn5 is p6id for an, perjod~ proper
adjustment shall be cade in eonr.e~tion with subsequent re=ittances.
Adjust_eats on account of errors in co~tributions r~uired of any
eaployee may be aaae by dir~ct paycents between the .&ployee and the
Soard.
B. fbi. aDendment shall be effective on the
__________ , 19 __
tIOARD OF ItDf!IJlI ST'RATION -1.
PUBLIC EMPLOYEES' RETIR3MENT S),~
~O #~
BY ==:-:==,=--==""",=-",,",===_ ClUBP. CCNTRAC'l" SER!,~ES OIYIS10N
PUBLIC DlPLOYEES' ~REMEN'T SYSTEM ~<)
~ ~.
~ $
PERS-c'Oli1-702 (~l
eR.ev. 'lIB)
CITY COUNCIL
0. TI!Z
CITY OF PALO AL"1'O
Presi~ing Qffice(§r
<~
!-...
Witness Date ~
Attest: /; ; ..
Clerk
day of