SR-602-003 (13)
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CouncIl ~eetlng: February 14, 1984
Santa MonIca, CalIfornia
to-c
HB 1 4 19d4
TO:
Mayor and City Council
FROM:
City Staff
SUBJECT:
Resolution Of IntentIon To Approve An Amendment To
The City's Contract With PERS To Provide The One-Year
Final CompensatIon Benefit For Local Police Members.
Introduction
This report requests that Council adopt the attached Resolution
prOVIding the one-year final compensatIon benef1t for local
polIce members of PERS 1n accordance with the terms of the
Memorandum of UnderstandlnQ (MOU) WIth the Santa Monica PolIce
Offlcer's AssoclatIon (SMPOA).
Backg round
In April, 1982 the City Council entered Into a Memorandum of
Understanding
WIth
the
Santa
Mo n i c a
pollce
Officer's
Assoc i at ion.
One of the terms of that MOU requires that the
City amend its contract with the PublIC Employee's RetIrement
System to prOVIde SectIon 20024.2 (One-year final compensation,
also known as sin~le highest year) for local police members.
The process for amendIng the contract requires that the CIty
adopt a Resolution of IntentIon to amend the contract, and make
publIC the annual cost of the amendment as determlned by the
contrIbutIon rate change transmitted In the attached actuarIal
Io-c
fE/) 1 4 1984
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report prepared by PERS prior to adopting an Ordinance which
amends the contract.
The amendment wIll raIse the City's PERS contrIbution rate from
32.106% to 33.900% on the total safety payroll. The estImated
cost of thIS amendment based on projected safety salaries for
1984-85 will be $152,OOO.
If Council adopts the ResolutIon at the February 14 meeting, the
first readi~J of the OrdInance will be SCheduled for March 13,
1984 and implementatIon by July 1, 1984 will be assured.
RecommendatIon
It 1S recommended that CouncIl adopt the attached ResolutIon of
Intention to Amend the City's Contract with PERS ~o comply with
the terms of the MOU with SMPOA.
Prepared By: Susan E. McCarthy
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AMEND~ENT TO CONTRACT
BET'I'I"EE N THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
t-'Lf~ ) ~ , CITY OF SANTA MONICA
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The Board of Ad~~nIstra~~on, Pub i~t~mn~oy,ees' Retlrement System, hereln-
t.~I,I,."'" / '),
after referred to as Board. and the governlnt:,1,oQs!YrRf above publIC agency.
herelnafter referred to as Public Agency. having e~Vt~d into a contract effec-
tive July 1, 19~4, and wltnessed Aprll 5, 1944, and as amended effective March
1. 1950, September 1, 1951, June 1. 1954. November 1, 1960. February 1, 1962,
September 12. 1965, November 1. 1969. November 25. 1973, January 20. 1974,
March 3. 1974, and June 28, 1981, which provldes for partiCIpation of Publ~c
Agency in sald System. Board and Public Agency hereby agree as follows:
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A. Paragraphs 1 through 10 are hereby stricken from said contract as executed
effective June 28, 1981, and hereby replaced by the follOWing paragraphs
numbered 1 through 11 Incluslve:
1 .
All words and terms used hereln wh~ch are defined in the Public Employ-
ees' Ret~re~ent Law shall have the meaning as defined therein unless
othe~wlse specifIcally provlded. "Normal retlrement age" shall mean
age 60 for local mlscellaneous members, age 50 for local f~re and
~ocal police members, and age 55 for l~feguards on ocean beaches.
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2. Pub1~c Agency shall part~clpate in the Public Employees' Ret~rement
System from and after July 1, 1944 makIng its employees as herelnafter
provided, members of said System subject to all prOV1Sions of the
PubllC Employees' Ret1reme~t Law except such as apply only on election
of a contractIng agency and are not provlded for here~n and to all
amendments to said Law hereafter enacted except those, WhlCh by express
provlslons thereof, apply only on the elect~on of a contractlng agency.
3. Employees of PubliC Agency in the followlng classes shall become me~-
bers of sald Ret~rement System except such In each such class as are
excluded by law or th~s agreement:
a. Local FIre Flghters (hereIn referred to as local safety members);
b. Local PolIce Officers (herein referred to as local safety
members) ;
c. Llfeguards on ocean beaches (lncluded as local safety members);
d. Employees other than local safety members (herein referred to as
local mlscellaneous members).
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4. In addJ.t::.on to the class~jr~f "employees excluded from membership by
saJ.d Ret1rement Law, the foilo~ng classes of employees shall not
become members of sa1d Retirement'Szstem:
#'1/1/81l" _
NO ADDITIONAL EXCLUSIONS()'YLr~
5. The fraction of final compensat~on to be provIded for each year of
credited prior and current servJ.ce as a local miscellaneous member
shall be d~termlned in accorda~ce wlth Section 21251.13 of sald
Retlrement 'Law (2~ at age 60 Full).
6. The frcctlon of flnal conpensatlon to be provided for each year of
credlted prIor and current serVlce as a Ilfeguard on ocean beaches
shall be determlned in accordance wlth Section 21252.1 of sald
Ret1rement Law (One-half pay at age 55 Full).
7. The fractlon of final cornpensatlon to be provlded for each year of
credlted prior and current serVlce as a local flre or a local police
member shall be determined 1n accordance with Sec~10n 21252.01 of said
Ret~rement Law (2$ at age 50 Full)~
8. The follo~ing additional proviSIons of the Public Employees' Ret~re-
ment Law, which apply only upon election of a contract~ng agency,
shall apply to the Public Agency and lts employees:
a.
Sectlon 20019.3 ("Local safety member" shall also include
lifeguards on ocean beaches in accordance with Government Code
Sectlon 20019.3).
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b. Sectlons 2'380-21387 (1959 Survivors Program) excludlng Section
21382.2 (Increased 1959 SurVIvors benefIts).
c. Sectlon 21222.1 (Special 5~ lncrease - 1970). Legislatlon
repealed said Sectlon effective January 1, 1979.
d. SectIons 21263/21263.1 (Post-retirement survivor allowance), for
local flre and local police members only. .
e. Section 20024.2 (One-yea~ fInal compensation), for local flre and
local police members only.
9. Public Agency shall contrIbute to said Retlrement System as follows:
a. Wlth respect to local m1scellaneous members, the agency shall
contrlbute the follow~ng percentages of monthly salaries earned
as local m1scellaneous members of sald Ret1rement System:
(1) 0.276 percent untIl June 3D, 1985 on account of the
liablll~y for prlor serVlce benefits.
(2) 12.180 percent unt~l June 30. 2000 on account of the
lIabl11ty for current serVIce beneflts.
:
b.
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(3) 0.044 percent orr~dCp~pt of the liability for the 1959
SurVlvor Program. "'iiiI8iT Q
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Wlth respec~ to local safety members: the agency shall contribute
the follo~lng percentages of monthly salarles earned as local
safety members of said RetIrement System:
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(1) 0.035 percent untll June 30, 2001 on account of the
~lablllty for prlor serVlce benefIts.
(2)
33.755 percent ~ntil June 30, 2000 on acc~~nt of
liabIlIty fo~ current serVlce benefIts.
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(3) 0.109 percent on account of the liabilIty for the 1959
SurVIvor Program.
c. A reasonable amount, as fixed by the Board, payable in one in-
stallment wlthin 6Q 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 valuatlons or
of the periodlc lnvestlgation and valuatlons requlred by law.
d.
A reasonable amoun~, as fixed by the Board, payable in one in-
stallment as the occasions arise, to cover the costs of special
valuatlons on account of employees of Public Agency, and costs of
the perlodlc lnvestlgation and valuatIons requlred by law.
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10. Contrlbutions requlred of Public Agency and its employees shall be
subJect to adJustment by Board on account of amendments to the PubllC
Employees \ Retirement Law, and on account of the experIence under the
RetIremen~ Syste~ as deter~ined by the perIodic investigatIon and
valuatIon reqUIred by said Retlrement Law.
1'. Contrlbutlons requlred of PubllC Agency and its employees shall be
pald by PU~llC Agency to the Retirement System wIthln thIrty days
after the end of the perlod to WhlCh saId contributIons refer or as
may be prescribed by Board regulation. If more or less than the cor-
rect amount of contrIbutIons is paid for any perlod, proper adJustment
shall be made in co~nection with subsequent remIttances, or adjust-
ments on account of errors in contributions requlred of any employee
may be made by direct cash payments between the employee and the
Board. Payments by PubllC Agency to Board may be made ln the form of
warrants, bank checks, bank drafts, certified checks, money orders or
cash.
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B. T,his amendme~t shall be attached to sald contract and 3hall be effective on
the day of . 19__
WItness our hands the
day of
. 19__
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF SANTA MONICA
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BY
SIDNEY G. McGAUSLA~D,
EXECUTIVE OFFICER
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BY
PresJ..dlng
II
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I ONi r"
Attest:
Off1cer
Approved as to form:
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Le~al Off1.ce, Date :
Margaret J. (Hoehn,
'-
Clerk
PERS CON-702
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?E~S - CO~-14 tRev. 5/33)
AGE~CY ~AMS Glty of Santa4ltnlca
Ef'!P.EP NUf~ER-
0054
SAFETY l'fEMBERS
PFES~NT EE~EF:TS
1982 ASS:J!<1P:':::ONS
PROPOSED BENEFITS
1982 ASSUMPTIONS
A. VAL~A~=ON SPEC:::FICAT:ONS
1 . Actuana:!. Jata as of 6 '-':0'1982
2.
FO:::-Jlu:a
Pire & Police :
Lit eauard :
Fire:
Police & Lifeguard ;
2t @ 50 1'ull
\ @ 55 lull
1 Year
3 Yeare .
1 & P:2t @ 50 lull
LG: \- @ 55 lull
l' & P: 1 Year
LG: 3 Yeare
,
3.
?~na: Co~?ensa:lon Ave~agc
t.
'959 S~r,lVor Beneflts Yes
Fire & Police :Yes
?cst-~et~rereeLt Survlvor 3ene:l:s Life&uard :No
Y~II
F & P:Yea
LG : No
5.
E. AGEI;CY corr:'RI:s:.;=:::cm RATE F011' CURREXT SEPVICE
r ... +' - 1 ' t 1 6 '''0 ' ,
~as ~ o. ~ember payro~L un l 1/ ,~j
.
a.
~etlrenent 3ene:lts
31.963t
33. 756t
b.
Dea';;}: Eenehts
-0-
-0-
c.
1959 SurVlvor Be~eflts
0.109"t
0.109t
C. AGE~~~ COK~P=DUTION FeR PRIOR SERVICE
a.
Contrlbutlon rate as % of member
payroll untIl 6/")0/ 2001
O.03'i'7.
0.034t
II. '::'CTAL A\;El;CY CO~;:'R:::E;]'i'::::J~m
I:.
a.
Total Agency Contrlbutlon Rate:
(W~en c~ange l3 for an lndlvlcual safety
groUF, ~ate wll~ apply to ~otal safety
1 ~ '
payro~~;
33- 900'7.
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AC~UAP~AL VALJA~IO~
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S 154.00
DATE:
Noveaber 10, 1983
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DISTRIBUTION OF RESOLUTION #
G
"
ORDINANCE #
'~
COUDCll Meeting Date
2-1,J
Introduced:
Agenda Item #
(;- -c
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- J~~A~ /iTf..i Adopted:
* ALWAYS PFBLISH flroTrn:iu ORDINANCES
Was it amended?
VOTE' Affirmative:
Negative'
Abstain"
Absent:
e. E ::r
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DISTRIBUTION:
ORIGINAL to be signed, sealed and filed in Vault.
NEWSPAPER PUBLICATION (Date:
)
)
Department originating staff report (
Management Serv~ce$ Lynne Barrette -urdinances only
1
Agency mentioned in document or staff report
(certifled?)
Subject file (agenda packet) 1
Counter file 1
Others:
Airport
Parking Auth.
I'
Audltorum
/
Personnel
SEND FOU~ COPIES OF ALL ORDINANCES' TO:
CODFD SYSTEMS, Attn peter- Maciearie
120 Main-C:tr-=-et
AV0Q. Kew Jersev_07717. .
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SEND FOUR COPIES OF ALT, ORT1TNANrps, 0:
PRESIDING JUDGE" . -
SA~TA ~O~ICA MUNICIPAL COURT
l725 ~AIN STREET
SA~TA MONICA, CA 90401
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TOTAL COPIES
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RESOLUTION NO. 68l6~CCS)
(CIty CouncIl Series)
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA OF INTENTION
TO APPROVE &~ AMENDMENT TO CONTRACT BETWEEN
THE BOARD OF ADMINISTRATION OF THE PUBLIC
,
EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF SANTA MONICA
WHEREAS, the CIty of Santa Monica and the Santa Monica
Police Officer's Association entered into a Memorandum of
Understanding on Aprll 14, 1982, WhlCh provided for the amending
of the Citi'S contract ~Ith the Public Employees' Retirement
System to provide the benefit known as Government Code Section
20024.2, One-Year flnal compensation; and
WHEREAS, the PublIC Employees' Retirement Law permits the
partIcIpatIon of publIC agencies and their employees in the
~ublIC 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
~~EREAS, one of the steps In the procedure to amend this
contract is the adoptIon by the legislative body of the publIC
agency of a resolutlon giVlng notIce of it5 intention to approve
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an amendment to sald contract, WhlCh resolution shall contaln a
summary of the change proposed In said contract; and
WHEREAS, the following 1S a statement of the proposed
chaOJ e:
To provide Government Code SectIon 20024.4 (One-year
final compensatIon) :or local police members.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1: The City does hereby give notice of intention
to approve an a~endment to the contract between t~e CIty of
Santa Monica and the Board of AdminIstratIon of the Public
Employees' Retirement System, a copy of saId amendment beIng
attached hereto, as an "Exhibit" and by thIS reference made a
part hereof.
SECTION 2: The City Clerk shall certify to the adoption
of this Resolution, and thenceforth and thereafter the same
shall be in full force and effect.
APPROVED AS TO FORM:
- -} 1,-..2'~<l "...'::< ~ '~
J ....:,;;.4l ~ -'.r' 5H:> ~-1C} - ~ 'No ',:ft. ~ ..(~~
(J
Robert ~. Myers
Cl ty At torney
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ADOP7ED AND APPROV~J 7~!S
l4th
DA.Y
OF
February
, 1 984 .
MAYOR
! HEREBY CERTIFY THAT THE FOREGOING RESOLUTION
NO. 6816(CCS).~AS DULY ADOPTED BY THE CITY COUNCIL OF THE
CITY OF SANTA ~ONICA AT ~ MEETING THEREOF HELD ON
February l4
, 198j 8Y THE FOLLOWING COUNCIL VOTE:
AYES:
COUNCILMEMSERS: Conn, Epste~n, Jennings, ?ress,
Zane and Mayor Edwards
;.lOES:
COUNCILMEM8ERS: Reed
ABSENT:
COUNC!L~EM8ERS: ~one
AgSTAr~:
COU~CIL~EMBERS: ~one
ATTEST:
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CITY CLERK