SR-602-003 (12)
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PE:SEM:p
CouncIl MeetIng: March 13, 1984
Santa MonIca, Callfornla
fi'-c,
MAR 1 3 1984
TO:
Mayor and Clty Councll
FROM:
Clty Staff
SUBJEC r :
Ordinance Authorlzinq An Amendment To The Contract
WIth PERS To PrOVide One-Year FInal Compensatlon
BenefIt For Local Police Members
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Introduction
ThIS report requests that CounCIl enact the attached OrdInance
authorizinq an amendment to the Clty'S contract WIth the PubllC
Employee's Retirement System (PERS) to provide the one year
fInal compensatlon benefIt for local polIce members of PERS In
accordance WIth the terms of the Memorandum of Understandinq
(MOU)
WIth the Santa MonIca Police Officer's ASSOCIation
(SMPOA) .
Backqround
On Februarv l4. 1984. the City Council adopted a Resolutlon of
IntentIon to amend the Clty'S PERS contract 1n accordance WIth
the terms of the SMPOA MOU. The second step in the process of
contract amendment reaUlres that the C1tv enact an Ordinance
authorlZinq executIon of the amendment. The required Ordinance
has been prepared and approved by the Citv Attorney.
The amendment WIll raise the CltV'S PERS contributIon rate from
32.l06 to 33.900% of the total safety payroll accordinq to the
valuation prOVIded bV PERS actuarials.
The est1mated cost of
y-<:
MAR 1 J 1984
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the amendment based on projected safety salarIes for 1984-85
will be $l52,OOO.
If Council enacts the Ordlnance at the March 13 meeting, timely
implementatIon of the benefIt WIll be assured.
RecommendatIon
It IS recommended that CouncIl enact the attached Ordinance to
author~ze execution of an amendment to the CIty'S contract with
PERS to comply wIth the terms of the SMPOA MOD, by introducIng
the ordInance for fIrst readIng.
Prepared By:
Susan E. McCarthy ~
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ORDINANCE NO.
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(City CouncIl SerIes)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN
AS FOLLOWS:
SECTION l: That an amendment to the Contract between the
CIty CounCIl of the CIty of Santa MonIca and the Board of
AdmInistratIon, CalIfornia PubllC 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 CIty Manager of the City of Santa Monica
is hereby authorized, empowered, and dIrected to execute said
amendment for and on behalf of said Agency.
SECTION 3: The Mayor shall SIgn and the City Clerk shall
attest to the passage of thIS ordInance. The CIty Clerk shall
cause the same to be publIshed once in the offlclal newspaper
WIthIn IS days after Its adoptIon.
ThIS Ordinance shall take
effect 30 days after the date of Its adoptIon.
APPROVED AS TO FORM:
(U-t~ ~ .~/
ROBERT M. MYERS f 1
CIty Attorney Li
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At.tSNJME:NT TO COnTRACT
BEn;EEN THE
BOARD OF AD~INISTRATION
OF THE
PU3~IC ~~PLOY~ES' RET:RSM~~IT SYSTEM
AND THE
, CITY COUNC:L
, OF THE
(-'fl.;- - - CTTY ~:;" s~. "T~. un PT"'.
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The 30ard of Ad:-::l '1lstrar.1on, u~_H: J!:.L"?::...o],ee.s ..etlreI!lent. ys e"l, ereln-
after referred to as Board, and the governlnlglSO)iYrff above publle agen~y,
herel~after referrej to as PubllC Agency, havlng errt~frd into a contract effe~-
tlve July 1, 1944, and wltnessed Aprll 5, 1944, and as aMended e:fectlve March
1, 1950, Septe~~er 1, 1951, June 1, 195&, November 1, 1960, February 1, 1962,
Septe~ber 12, 1965, November 1, 1969, November 25, 1973, January 20, 1974,
March 3, 1974, and ~u~e 28, 1981, WhlCh provides for particlpatlon of PubllC
Ager.cy In sald Syste~, Board and Publl~ Agency hereby agree as follows:
A. Paragraphs 1 through 10 are hereby str1cken from sa1d contract as executed
effectlve June 23, 1981, and hereby replaced by the folloWIng paragraphs
n~~oered 1 through 11 lncluslve:
, .
All wores and terms used hereln which are deflned in the Pujlic Ern~loy-
eest Ret~rement Law shall have the meanIng as deflned therein unless
ot~e~~ise speclflcally provldec. "Normal retlrement age" shall mean
age 60 for 10ca1 mlscellaneous me~be~s, age 50 for local fIre and
~oc21 pollee rne~bers, and age 55 for lifeguards en ocean beaches.
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2. Publ:~ Agency shall partlclpate in the Publlc Employees' Retlrement
Sys~e~ frcr. and after July 1, 1944 making Its enployees as herelnafter
prOVIded, members of sald Syste~ subject to all prOVIsions of the
PublIC Employees' Retlrement Law except sUc~ as apply only on election
of a contract~ng agency and are not provlded fer hereln and to all
~e~d~ents to sa1d Law hereafter enacted except those, WhlCh by express
provlslons thereof, apply only on the election of a contracting agency.
3. Employees of FutIle Age~cy in the followlng classes shall become me~-
bers of sald RetIrement System except such In each such class as are
excluded by law or thls agreement:
a. Local Flre FIghters (herein referred to as local safety members);
b. Local Pollee OffIcers (hereIn referred to as local safety
menber s) ;
c. Llfe;uards on ocean beactes (Included as local safety members):
d. E~ployees other than local safety cem~ers (herein referred to as
local ~lscella~eous nernbe~s).
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4. In adcltlon to the class~~;~f~employees excluded from membershIp by
S2ld RetIrement Law, the fol1o~fqg classes of employees shall not
beco~e members of said RetIreoe~t' S~3tem:
;l/i//J/r
NO ADDITIONAL EXCLusroiISO'\/L 1'''''
5. ~~e f~actloP of firal cc~pensat:cn to be provlded for ea~h year af
cred~ted prlar and current SerV1Ce as a local ~Iscellaneous me~jer
sha:~ be d~ter~lned in acco~da~ce ~lth SeC:lon 21251.13 of SalG
Retlrernent'Law (2% at age 60 Full).
6. The :rac~~c~ 0: flnal cG~per.satlon to be provlded fot each year 0:
credlted prlor and curren~ serVlce as a Ilfeguard on ocean teaches
shall be de~ermlned 10 accordance ~ith Section 21252.1 of S=l:
Retlrement Law (One-half pay at age 55 Full).
7. The fractlon of final compe~satio~ to be provlded for each year o~
credited prlor and current service as a local flre or a local polIce
member shall be determined in accordance wlth Sec~lon 21252.01 of sald
Retlrement Law (2~ at age 50 Full).
8. The follo~lng additional provlslons of the PutllC Employees' Retire-
ment ~aw. WhlCh app~y only upon electlon of a contract~ng age~cy,
shall apply to the Public Agency and its employees:
a.
Section 20019.3 ("Local safety member" shall also lncluae
llfeguards on ocean beaches in accordance wltn Govern~ept Code
Section 20019.3).
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b. Sectic~s 21380-21387 (1959 SurVlvors Program) excluding Sectiop
21382.2 (Increased 1959 SL,V1vors benefits).
c. Sectlon 21222.1 (Special 5~ increase - 1970). LegislatIon
repealed said Sectlon effective January 1, 1979.
d. Sections 21263/21263.1 (Post-retirement surVlvor allowance), for
local flre and local police members only. .
e. Section 20024.2 (One-ye2r f1nal compensation), for lo~al fire a~d
local police members only.
9. Public Agency shall ccntrlbute to said Retirement System as follows:
2. WIth respec~ to local rolscellaneous members. the agency shall
contribute the following percentages of monthly sal=rles earned
as loccl mlscellaneous ~embers of saId Retirement System:
(1) 0.275 percent untll June 30, 1985 on account of the
lIabl1i~y for prlor serVlce benef:ts.
(2) 12.180 pe~cent upt11 J~ne 30, 2000 on account of the
11ab111ty for currept serVlce beneflts.
b.
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(3) 0.044 percent oll'adcoupt of the liabllity for the 1359
",irJJ8 '
SurVl vor Progra:::. II IT 0
N(}'..,
Wlth respect to local safety members, the agency shall contrlbu~e
the fOllowIng percentages of monthly salarIes earned as local
safety members of saId Retirement System:
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(1) 0.035 percent untIl June 30, 200i on account of the
~:a~:llty for prIor serVIce beneflts.
(2)
33.756 percent untll June 30, 2000 on acc~nt of
llab:llty for curre~t serVIce beneflts.
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(3) 0.109 percent on account of the llabIllty for the 1959
SurVIvor Program.
C. A reasonable amount, as fixed by the Board, payable in one in-
stall~ent withIn 60 days of date of contract to cover the costs
of admlnlsterlng sald System as it affects the employees of
Public Agency, not Inclu~lng the costs of special valua~ions or
of the perlojlc lnvestIgatlon and valuatlons required by law.
d.
A reasonable a~oun~, as fl~ed by the Board, paya~le in one in-
stallffient as the occasions arise, to cover the costs of speclal
valuatlons on account of employees of ?ubllC Agency, and cos~s of
the perlodlc Investlgatlon and valuatIons requlred by law.
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10. Contributions required of Puolic Agency and its em?loyees shall be
sub~ect to adJustme~t by BoQrd on account of amend~ents to the PubllC
Enoloyees' Hetlrement Law, and on account of the eXperIence under the
R~t~rement Syste~ as determ~ned by the perlodlc investigatlon and
valuatIon requlred by S21d RetIrement Law.
11. ContrIbutIons requlred of PubliC Agency and lts employees sha~l be
palO by PubllC Agency to the Retlrement System within thlrty days
after the end of the perlod to WhlCh saId contrIbutions refer or as
may be prescrlbed by Board regulatlon. If more or less than the cor-
rect a~ount of contrlbutlons IS pald for any perIod, pro?er adJust~ent
shall be made In connectIon with subsequent remItt2~ces, or adJust-
ments on account of errors in contrIbutions requIred of any emoloyee
may be made by direct cash pay~ents between the employee and the
BoQrd. Paymerts by PubllC Agency to Board ~ay be made ln the form of
warrants, bank checks, bank drafts, certIfied checks, money orders or
cash.
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B. ~his amend~en~ shall be attached to sald contract and shall be effectIve on
the day of , 19_
WItness cur hands the
day of
, 19_
BOARD OF ADM:~:S7~AT:J~
PU5U: ::'1PLCYE:ES t RETBEM:;!i7 SYS::':l.,I
CITY CDU:;CIL
OF THE
CITY OF SANTA M8~ICA
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BY
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BY
Presld::.ng
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,1', 1/8/T
ON, Y"
Attest:
Offlcer
SID'"~EY c.
'AcCAJSI..,;:1J ,
EXECUTIVE
OFFICER
Approved as to form:
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Margaret
J . :rioenn,
'-.;.
Le~al OffIcet Date
ClerK
PERS CC~l-7C2
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~;~ ~ant~onica
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Er-i?LOYEP NiJY.:EER
0054
AGE!r:::-
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City
SAFETY m;ffiJERS
PR2S?NT BE~E?=TS
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P2CPOSED BE~EFI~S
1982 ASSJ"HPT"::: eNS
1982 ASSTJH?'.:':01iS
A. VALU~:=8N S?ECIF:C~T~0NS
1 . Act~arlal Ja:~ as of 6!~01982
2.
For:l..lla
,
lire a PoUCi! . 27. @ 50 Full '1 & P:2~ .~ SO Iu 11
.
Lif~;tuard: ~ @ 55 ?ttll LG: ls @ 55 ~ul1
Fire: 1 Year r & ?: 1 Year
Police 0& Lifeguard 3 Y~;;trs . LG: 3 Yeq.J"3
"Z
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Fl~a: :o~pensa~loc Average
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~9~9 S~r~~~vor Beneflts
Yl!8
Fire & ?ol1ce :Yes
L1f~~u:&rd :No
y~s
r & P:Yea
LG :No
5.
Fost-~etlrexe~: Surv~v~r Eer.efl~s
I. ~_GE~-:C: CO~:r:'FI3U~=C~; 3A':'~ ~QF CUP3~N~ sS!rr:CE
(as S o~ menber ~&yroll untll
.- !_,.....T ",
0/ )\',2000 )
.
a.
Ret~remeTI: 3ene:lts
31.963~
33. 756~
b.
Dea t:-. Bene:l ts
-0-
-0-
c.
1959 S~rVIVor 3ene:lts
O.l09~
O.109~
C. AGENCY COJ?1=3J~IO~ FOR PR:03 SE~VICE
3_
Contr~but~an rate as % of member
payroll untll ~/)Ol 2001
O.03!..'t
0.0357.
!J. ?C~_~:.. A:';~:~C~ COr~!F::S~:IO:~3
a.
~ot~~ Agency Con:r~b~t~on Pate:
(Whe~ ctacge ~s for an lndlv~dua: safety
group. rate wlll apply to :o:al safety
pay:,oll\
32.1067.
.3 .3 _ 9001.
I". AC:'!.JAF:A~ ',1.~~ri~:C~T :'~E S 154.00
DA~'S:
Nov~ber 10, 1983