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Home My WebLink AboutRES NO 068-02 068-02 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 BAKERSFIELD 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 21354.3 (3% @ 60 Full formula) for local miscellaneous members. 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 Public Employees' Retirement. System, a .copy of said amendment being attached hereto, as an "Exhibit and~by ' referen~~~~Tade a p ~e f. Presiding Officer // MAY 8 2002 Date adopted and approved (Amendment) CON-302 (Rev, 4/96) HARVEY L HALL, HAYOR Title I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting hereof held on MAY 8 ~OOZ , by the following vote: AYES: NOES: ABSTAIN: ABSENT: COUNCILMEMBER SALVAGGIO, CARSON, BENHAM, MAGGARD, COUCH, HANSON,,~U6L'{~N COUNCILMEMBER ~',,.~0 N~ COUNCILMEMBER ~ ON~.- COUNCILMEMBER ~l--L.-i ~[ CITY CLERK and Ex Offici~{~lerk of the Council Of the City of Bakersfield APPROVED MAY 8 2~,,~, HARV~L'H~LL ' / MAYOR of the City of Bakersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield CalPERS California Public Employees' Retirement System EXHIBIT AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Bakersfield 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 August 1, 1944, and witnessed July 17, 1944, and as amended effective January 1, 1950, November 1, 1957, October 1, 1958, April 1, 1965, October 1, 1967, January 1, 1971, June 26, 1972, January 22, 1973, May 23, 1973, September 19, 1973, April 24, 1974, January 1, 1977, September 25, 1978, March 23, 1979, October 3, 1983, June 6, 1992, April 15, 1993, February 20, 1995, February 19, 1997, November 20, 1999 and May 25, 2001 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: Paragraphs 1 through 15 are hereby stricken from said contract as executed effective May 25, 2002, and hereby replaced by the following paragraphs numbered 1 through 15 inclusive: 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 60 for local miscellaneous members and age 50 for local safety members. PLEASE DO NOT SIGN "EXHIBIT ONLY" Public Agency shall participate in the Public Employees' Retirement System from and after August 1, 1944 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. 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); Employees other than local safety members (herein referred to as local miscellaneous members). 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: EXCLUDE ALL FIREMEN EMPLOYED ON OR PRIOR TO JUNE 26, 1972 EXCEPT THOSE IN EMPLOYMENT ON CONTRACT DATE WHO WAIVED RIGHTS UNDER LOCAL SYSTEM; AND SCHOOL CROSSING GUARDS AND POLICE CADETS HIRED ON OR AFTER FEBRUARY 1, 1974. Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or seasonal basis not to exceed 6 months were excluded from PERS membership by contract. Government Code Section 20336 superseded this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 1, 1994. Assets heretofore accumulated with respect to members under the local retirement system who waived their rights under that system have been transferred to the Public Employees' Retirement System and applied against the liability for prior service incurred thereunder. That portion of assets so transferred which represent the accumulated contributions (plus interest thereof) required of the employees under said local system have been credited to the individual membership account of each such employee under the Public Employees' Retirement System. ORIGltW PLEASE DO NOT SIGN "EXHIBIT ONLY" 10. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354.3 of said Retirement Law (3% at age 60 Full). [Note that future legislative proposals are being considered. One proposal could amend the 3% at 60 benefit formula under Government Code Section 21354.3 to coincide with the 2.7% at 55 benefit formula under Section 21354.5 between the ages of 50 and 55. Another proposal being considered could amend Government Code Section 21354.3 to make the 3% @ 60 formula applicable to both active and inactive members who have not yet retired. If enacted, this amendment could have an effect on your agency's actuarial valuation and employer contribution rates in future years.] The percentage of final compensation to be provided for each year of credited prior and current service as a local police member shall be determined in accordance with Section 21362 of said Retirement Law (2% at age 50 Full). The percentage of final compensation to be provided for each year of credited prior and current service as a local fire member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). Public Agency elected and elects to be subject to the following optional provisions: Section 21536 (Local System Service Credit Included in Basic Death Benefit) for local fire members only. Sections 21624 and 21626 (Post-Retirement Survivor Allowance) for local safety members only. c. Section 21571 (Basic Level of 1959 Survivor Benefits). Section 21222.1 (One-Time 5% Increase - 1970). Legislation repealed said Section effective January 1, 1980. 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. Section 21325 (One-Time 3% to 15% Increase For Local Miscellaneous Members Who Retired or Died Prior to January 1, 1974). Legislation repealed said Section effective January 1,2002. g. Section 20042 (One-Year Final Compensation). ~RIGINA[ PLEASE DO NOT SIGN "EXHIBIT ONLY" 11. 12. h. Section 20903 (Two Years Additional Service Credit). repealed said Section effective January 1, 1999. i. Section 21574 (Fourth Level of 1959 Survivor Benefits). Legislation Section 21024 (Military Service Credit as Public Service), Statutes of 1976. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on January 1, 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. 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: 14. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members and local safety members. 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. 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. 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. 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. B. This amendment shall be effective'on the BOARD OF ADMINISTRATION__ PUBLIC EMPLOYEES' RETIREI~NT SYSTEM BY day of CITY COUNCIL CITY OF BAKERSFIELD BY ,~x KENNETH W. MARZI~HIEF PRESIDING OFFICE~ ' ACTUARIAL & EMP~,.OYER SERVICES DIVISION ," '"" PUBLIC EMPLOY,~,J~' RETIREMENT SYSTEM Witnes~t~ Clerk AMENDMENT PERS-CON-702A (Rev. 8\96) ORIGINA~