SR-8-C (43).~
• r
PE:persl.bancroft.pms
Council Meeting: January 12, 1993
TO: Mayor and City Council
FROM: City Staff
~C
s~~?!~~ ~ ~ 1~~3
Santa Monica, California
SUBJECT: Recommendation to Adopt Resolution af Intention and
Introduce an Ordinance to Amend Contract Between the
Public Employees' Retirement System and the City of Santa
Moni.ca
INTRODUCTION
This report requests that City Council adopt the attached
Resolution stating its intent ta approve an amendment to the
contract between the Pub~ic Emplayee's Retirement system (PERS) and
the City af Santa Monica to pravide Section 20818 (Two-Years
Additional Service Credit) for local miscel~ane~us and safety
members. This report also requests that the City Cnuncil introduce
for fi.rst reading an ordinance which would amend the City's PERS
contract.
DISCUSSION
The City of Santa Monica contracts with PERS to provide a
retirement plan for its permanent employees. As a contracting
agency, the City may amend its cantract to provide various optiona~
benefits offered by PERS. In iight of our current budgetary
situation, the City i.s reviewing various options which, if
1
~ ~
1:!': 4 _ ~.'lh+
~ r',• ~ ~ I~J.7
.
implemEnted, would result in a reduction in its operational
expenses. The use of early r~tirement incentives is one such
option available to the City.
Section 20818 (Two-Years Additional Service Credit) would pranide
two years additional sErvice credit to members who reta.re during a
designated period if a mandatory transfer, iayof€, or demotion is
imminent due to budgetary reductions. Consistent with PERS
guidelines, the City would determine which job classifications
would be e~igible for this optional benefit and designate the
period during which this benefit would be offered. The designated
period must be subsequent to the date of the amendment to the PERS
contract and cannot be less than 90 days nor more than 180 days in
length. In ord~r to abtain the two years additional service
credit with PERS, an employee in one of the eligible job
classificatians designated by the City must have at least five
years serva.ce credit, be in employment status with the City for at
least one day during the designatEd periad, be at least 50 years
old and retire during the designated period. To meet the criteria
of the Government Code authorizing this amendment, perrnanent
vacancies within the C~ty mtzst be maintained as a result af
emplayees retiring with the two years additional service credit.
The City is canducting a survey ta determine potential employee
interest in a two-year additional service credit benefit. This
data will enable staff to determine if the two-year additional
2
[
service credit aption wouZd be beneficial to both the City and
potential retirees.
A survey of cities comparable to the City of Santa Monica indicates
that CulvEr City, Pasadena and Burbank have amended their contract
with PERS to include the two-year additional service credit option.
BUDGET/FINANCIAL IMPACT
The maximum one-time cost of this benef~t will range from 31~ to
63% af one year's salary for each emplayee who retires, with th~
exact percentage dependant upan the age and sex of the emp~oyee.
The value to the City is the greater salary savings which would be
obtained as a resu~t of keeping a pasition vacant.
RECOMMENDATION
It is recommended that City Cauncil:
1) Adopt the attached Resolution indicating its intent to approve
an amendment to the contract between the Public E7mployees'
Retirement 5ystem and the City of Santa Monica to provide
Section 20818 (Two-Years Additional Service Credit) for local
misceZlaneous and safety members; and
2) Introduce an ordinance to amend said contract as indicated.
Prepared by: Kar~n Bancroft, Director af Personnel
3
Attachments: Reso~ution of Intentian to amend contract between
the Public Employees' Retirement System and the
City of Santa Monica
Ordinance amending contract between the Public
Employees' Retirement System and the City of 5anta
Monica
~
RESOLIITION NO. 8~24 (CCS]
(City Council series)
RSSOLIITION OF INTENTION TO APPRdv~
AH AMENDMEl~'I' TO CONTRACT
BEiw~EN THE
BOARD DF ADMINIBTRATION QF THE
PUBLIC EMPLOYEES~ RETIREMENT SYSTEM AND THE
CITY COUNCYL OF THE CITY OF $AI1TA M021ICA
WHEREAS, the Public EmpZoyees' Retirement Law perfnits the
participatian af pubZic agencies and their employees in the
Public Employees' Retirement System by the execution of a
contract, and sets farth the procedure by which said public
agancies may elect to subject themselves and their employees to
a~aendments to said Law; and
WHEREAS, one of the steps ~n the procedures to amend ~his
cantract is the adoptian 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 folZowing is a statement of the proposed
change:
To provide Section 20818 (Two-Years Additional
Service Credit) for local miscellaneous members
and loca~ safety members.
THE CITY COUNCIL OF THE CYTY OF SANTA MONICA DOES RESOLV~ AS
FOLLOWS:
SECTION 1. Notice is hereby given of the intent of the City
Caunci~ of the City of San~a Manica to approve an amendment to
the contract between the said governing body and the Board of
Administratian ~f the Public EmpZoyees' Ret~rement System, a copy
af said amendment being attached hereto, as an "Eschibit" and by
this reference made a part hereof.
SECTION 2. The City Clerk shall certify to the adoption af
this Resalution and thenceforth and thereaft~r the same shall be
in full forc~ and effect.
Adopted and approved this I2th day of January , 1993.
_ ~~~~~
C %~ C~P.P/~' ~
APPROVED AS TO FORM:
J SEpH L~WRENCE
cting City Attorney
Adopted and approved this 12th day of January, 1993.
~ ~~~
~~ ' Mayor
~ hereby certify that the foregoing Reso].ution No. 8524(CCS)
was duiy adopted by the City Council of the City of Santa Monica
at a meeting th~reof held ort January 12, 1993 by the following
council vate:
Ayes:
Noes:
Councilmembers: Abdo, Genser, Greenberg,
Ho~brook, Olsen, Rosenstein,
Vazquez
Councilmembers: None
Abstain: Councilmembers: Nane
Absent: Councilmembers: None
ATTEST:
.y ///1~P'~ ~/LS/ y1~,~-+'~"_
`J ~ '"~City Cler~ `
~~~ ~ ~~i ~~V1~ Ly~{~~ V~4~
AMENDMENT TO CONTRACT COPY
B~:i'WEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC E~17PLOYEES' Rr:11REMENT SYSTEM
AND Tf~E
CITY COUNCIL
OF TI~
Cl'1'Y OF SAN'TA M4IVICA
The Board of Adininistratlan, Public Enaployees' Retirement System, hereinafter refened to as Board,
and the governing body of above public agency, hereinafter referre~ to as Public Agency, having entered
into a contract effective ]uly 1, 1944, and witnessed April 5, 1944, and as ameaded effeccive March 1,
1950, September 1, 1951, June 1, 1954, November 1, i96(l, February 1, 1962, September 12, 1965,
November 1, 1969, November 25, 1973, January 20, 1974, March 3, ~974, June 28, 1981, May 13,
1984 and 7anuary 1, 1992, which provides for participat~on of Public Agency in said System, Board and
Public Agency hereby agree as follows
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective January 1,
1992, and hereby replaceti by the following paragraphs numbered 1 through 12 inclusive:
1. All wards and terms used herein which are defined in the Public Employees' Retirement
Law s~al1 have rhe meaning as defined therein unless otherwise specifically provided.
"Nomnal retuement age" sha~l mean age 60 for local miscellaneaus members, age SU for
local fire and local police members, and age SS fvr ocean beach lifeguards.
2 Public Agency shall participate in the Public Employees' Itetuement System from and
after 7uly 1, 1944 makmg ics employees as hereinafter provide~, members flf said System
subject to al1 provisions of the Pvblic Emplayees' Retirement Law except such as apply
only on e~ection of a contractmg agency and are not prov~ded 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 c~ntracting agency.
3 Emplayees of Public Agency in the follawing classes shall become members of said
Retirement Sys~em except such in each such c~ass as are excluded by law or this
agreement•
a. Local Fire Fighters {herein referred to as local safety members);
b. Local Police Offcers (herein referred to as ~ocal safety members);
Ocean Beach Lifeguards (mcluded as local safety members);
d Em~loyees other than Iocal safety members (herem referred to as loca~
miscellaneous members)
a5 so i:s2•w~
-- . ..._. .- - -- . . _._ _ . _ . _.. .... . _ ._ _ .._
- -- - ..~~r~c[~ c~ci_ . "'- _ -- . _ . _
~ ~ lrw~~J/ 2J"Sn 23'wE ~~.L\r~~J 1
. _ _ . __ ,_ ., ._ ~ - ._. .~ _._ ._,. _ ._ -._ . .. . - -- • - ~ -- ..~...,,._.. . __._..^ --- - - - - ~.,..,,...-•-~- -~ -- ~--- -----~--~ - -~- - _-..--- -
,-- j" -- CS ~ _~ _, .,..,_ .__S.j'J~.~~iOCJ~~~~_,.;-.~ .,_.=`~4y S.~_.~_,__.. _ ~.,SS,oN CL ---'-----"'- r:
~ c~~ ~C PAt~'~h+i4:iV~ ~~
~ ) ~ a,~ ?_ can ~ gu t t er ~~,~i~r`~ ~_--
4,.,.. }..~,OV~'Ft18QCf cV~ ~ (~ °~-'~~ -'~'
r , - -t ~ ~ - ~ -- - Ga~~#1._$a~~~. 1 _... __ .~ .w_._. _._~F~Sa-
J ,~' r'--.. I.rnes._...,'_..-. , Wa#er_ M#r. _..~.v.~. w~rER ~a•E,w yi...--•~ Jt n~' c
- ~~=.°~1. , s ' ~'~~~~~s~oa~ i ~aU~c J ~ff ~. ~~ -.~
~~ vUiv}. ~ , a~~ ~~ 3 ~~ ~~~ I r ~_ St~L_ight ._._= _,.:-_ F~'''~~ ;-'~wa~ _
.+: - ~ - r~ ~ - '-z -' -
o I ~ V~ fr-~ --~ ~- - - -- -_ _ ~~: ~~~iH~' ~= ~--~*r---'~1' ~ ~ ;3='r`--"~-~ '
~ ~~ =-
~ ~_ -~-4-~ •. Conr, ~:~'aik `€~._._ T S35'39'Q ~~~.:-~`~7_~~c~t-~~\~ t94.93'& ca~r~ k.ti
;~ "1 I ~- l~ __.._ _ _'~'~'~~' Y C~ Cc~r~c Blk 1F~a[1, i n',
`
rn . ~ 4'V ~ ~ :.~' ~
9 ~4ar) ° X _ _ _ ~ ~+ r ,,
. ~~ ~
~~ ' c~~ ' ~~ ~~i ~x~:~tin9~, - ti ~ ~.} z~ i~ ~~
~h ~f' E~ U~ ~ 1 SfOi'y StU('CO l~ „~i ~ !
N ~ r,-~ <t ~~ E3uilc~ ~{3??2 '~,> ~ t~,
.. ` C~ -- aao+«.__ ._. ~ Existing
~ ~-~_~'~ Qi ~ ~c~va ~verhang ~' e ~ n
v~j ~~ L._ ___ v ~•' ~ + 1 Story Stucc
~ ~Ua ~ ~- ~~. ~ ! ~ ~ ca ~ B ;!d #3232
a~i ~~ ~ ~"4r a ~ ~ i ~ ~ "Q ~
. ~---~--°~ `n ~n+,~ a,e ~ _ ~ ua ~' ~ +
u Lj I~ ~o wn ~+ ~, ~ (T1 ~ 6"conc ~ 1
.n . _~ C•ross T Q$ ~2• ~~ ~-~'b!k .a!! p ~
~ ~'~.' „ ~M
a ¢ ~ ~..- ~-~i"c.onr ~ bik. waE! h ~~h ~ ~ • ~
,~ ~.,
~ __ 5' ch !n tasce
.~,_.~-_ ~.~-~,._.-_ _,. ,_-.,... _,,,,, _ _ -,._,~ , ,~.._~,.--x ~ -_ .s,.~-. X • x .
s =- _~_.___ ~ - ~_ - - i9~.~7' .. __ _ _
~ -~3.i'4~i'S9"~, s~~'ea~~'~> ~ y~~•~ Canc 535'39'00'~~ 1'~7•5~ 245.96' .
~ ~ --- Rad ~`f ~ i} ~ f ~'4d
I
~~
i I
~
~
~ ~
~
~ c ~[c~ry ~lucCp -
Residence
~P
~
~
~
~i
r7
~-----^-
r
~ i tr
±~
~l~ ~
or;~
~ Myj~
r v-
U~~ i
1Mot~r N~if~r
1~t
17f ~
r
R
._1.., --- ~~ - -
-~
r~ __ r_.~ _~
i .m
i
. i ~
4
~ ~
I
,
~ I
~
~~
~ ~
~ ~
~
~
~ i
w
z E a
,~
i
N i ill ~.
~
W + ~
~ ~ ~
CA:jld645/hpc/pc
City Counci~ M~eting 1-12-93 Santa Monica, California
ORD~NANCE NUMBER
(City Council S~riES)
AN ORDTNANCE OF THE CITY COUNCIL ~F THE
CITY OF SANTA MONICA AMENDING THE C~NTRACT BETLdEEN
TH~ CITY COUNCTL OF THE CITY OF SANTA MON~CA AND
THE BOARD O~' AbMTNISTRATION OF THE
CAI,IFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
NOLJ, THEREFOR~, THE CITY COUNCYL a~' TH~ CITY OF SANTA
MONICA DOES ORDAIN AS FOLL06dS:
SECTION 1. That an ar~endment ta the contract between the
City Counci~ of the City of Santa P~Ionica and the Board of
Administrat~on, Califarnia Ptzblic Employees' Retirement System is
hereby author~zed, a copy of said amendment being attached
hereto, marked Exhibit, and by such ref~rence made a part hereof
as though herein set out in full.
SECTION 2. The City Manager is hereby authorized,
empowered, and directed to execute said amendment for and on
behalf of ~he City.
SECTION 3. Any provision of the Santa Monica Municipal
Code or appendic~s thereto inconsistent with the provis~ans of
this Ordinance, to the exten~. of such incansistencies and no
further, are her~by repealed or r~Qdified ta that ext~nt necessary
to affect the provisions af this Ordinance.
- ~ -
SECTIDN 4. ~f any section, subsec~ion, sentence, cZause,
or phrase of this Ordinanc~ is for any reason held to be invalid
or unconstitutionaZ by a decision af any court of any campetent
jurisdictzon, such decision shall not affect the validity af the
remaining p~rtions of this Ordinance. The City Council hereby
declares that it would have passed ~his Ordinance, and each and
every section, subsec~ion, sentence, c~ause, or phrase not
declared invalid or unconstitutional without regard to whether
any partion of the Drd~nance ~aauld be subsequently declared
invalid or unconstitut~onal.
SECTION 5. The Mayor shall sign and the City Clerk shall
attest to the passage of ~his Ordinance. The City Clerk shall
cause the same to be published once in ~he officia~ newspaper
within 15 days after its adoptian. This Ordinance shall become
effective after 30 days from its adoption.
APPROVED AS TO FORM:
J E LA ~TREI~CE
A ting City Attorney
_ 2 _
~~
0
~t~
~`~
,~~
'~~
~~
~~
~.~t?
AMENDhZENT TO CONTRACT ~op~
BETWEEN THE
BDARD OF ADMINiSTRATION
OF 1'I~
PUBLIC EhiPLQYEES' RETIREMENT SYSTEM
AND THE
CTTY COUNCIL
OF THE
CITY OF SANTA MDIVICA
The Baard of Admimstration, Public Employees' Retirement System, hereinafter referred to as Board,
and the gavernmg body of abave public agency, heremafter referred to as Public Agency, having entered
into a contract effective July 1, 1944, and witnessed Aprii 5, 1944, and as amended effective March 1,
1950, Sep~ember 1, 1951, 7une 1, 1954, Navember l, 196U, February 1, 1962, September 12, 1965,
November 1, 1969, Navember 25, 1973, January 20, 1974, March 3, I974, June 28, 1981, May 13,
1984 and January 1, 1992, ~vhich gravades for partic~pation of Public Agency in saFd 5yscem, Board and
Pvblic Agency hereby agree as follows
A Paragraphs 1 through 12 are hereby stricken from said contract as executed effecti~e January 1,
1992, and hereby replaced by the foll~wing paragraphs numbered 1 through 12 inclusi~e:
1. Aii words and terms used herein which are defined in the Public Employees' Retirement
Law shail ha~e the meaning as defined therem uniess otherwise specifica~ly pro~ided.
"Normal retirement age" shall mean age 64 for local miscellaneous members, age 50 for
local fire and local police members, and age SS for ocean beach lifeguards
2. Public Agency shaIl participate in the Public Employees' Retirement System ftom and
after JuIy 1, 1944 makmg its empioyees as hereinafter provided, members of said SyStem
subject to all provisions vf the Public Employees' Retirement Law except such as apply
only on election of a contractmg agency and are not pro~ided 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. Employees of Public Agency m 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 referre~i to as lacal safety members};
b Lacal Police Officers (herem referred ta as local safety members),
c. Ocean Beach Lifeguards (included as local safety members};
d Employees other than local safety members (herein referred to as local
misce~laneous members}
~~~~~ ~~ ~;UT St~~ "~~Bn QNt'~"
4 In addition to the classes af employees exct~deil €ro;n membership by said Retirement
Law, the follvwing classes of employees shall not become members of said Retirement
System:
NO ADDITIONAL EXCLUSIONS
5. The percentage of fina! compensation to be pro~ided for each year of creditad prior and
current service as a local miscellanenus member shall be determined in accordance with
Section 21251 13 of sa~d Ret~rement Law (2 % at age bQ Full)
6. The percentage Of fina~ carnpensation to be pro~ided for each year of crediteii prior and
current ser~~ce as an ocean beach lifeguard shall be determined m accordance witli
Section 21252.1 af sa~d Retirement Law (One-ha~f pay at age 55 FuII}.
7. The percentage of final campensation to be provided for each year of credited priar and
current service as a Iocal police member and tocal fire member shall be determined in
aecordance with Section 21252 O1 of sa~d Retirement Law (2% at age 54 Full}.
Public Agency elected to be sub~ect to the foliow~ng optional pravisions:
a Sect~an 20019.3 ("Local Safety Member" shall include ocean beach lifeguards of
a crty as describecl in Governrnent Code Sectian 20019 3).
b. Sections 2i380-21387 (1959 Survivor Benefits} excluding Sectian 21382.2
(Increased 1959 Svrvivor Benefits} and Section 213$2 4(Third LeveI of 1959
Sur~i~or Benefts)
c. Section 21222 1(Special 5~ Increase - 1970}. Leg~s~ation repealed said Section
effective January 1, 1980.
d. Sections 212b3 and 21263 1(Post-Retirement 5urvivor Allowance) for local ~re
members and lacal police members anly.
e. Sect~on 20024.2 (One-Year F~nal Compensation) for local fire members and locai
police members only
f Section 2Q930 3(Military Service Credit as Public Service),
Statutes of 1976.
g Section 20818 {Two-Years Addit~onal Service Credit).
9. Public Agency shaIl contribute to said Retirament System the contributions determtned
by actuarial valuations of ~r1or and future ser~ice liability with respect to local
miscellaneous members and local safety members of said Retirement System
1Q Public Agency sha~l aiso contribute to said Retirement System as foliows.
a. A reasonable amount, as fixed by the Bvard, payabie in one installment within
60 days af date of contract to cover the c~sts of administering said Systezn as it
affects the employees of Public Agency, not mcluding the costs of special
~aluations or af the per~od~c i~vestigation and valuat~ons required by law.
b. A reasonable amount, as fixed by the Boarc~, payable in one instaliment as the
occasions arise, to cover the costs of speciai valuations on account of employees
of Public Agency, and costs of the period~e in^estigation and valuations requ~red
by law.
11 Cantributions 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 nn
account of the experience under the Retzrement System as determined by the periodic
mvestigation and valuat-an required by said Retirsment Law
12. Contributians required of Public Agency and its employees shal[ be paid by Public
Agency ta the Retirement System w~thin fifteen days after the end of the period to which
said contributions refer ar as may be prescribed by Board regulatian. If more or less
than the correct amount of contriburions is paid for any period, proper adjustment shall
be made in connection with subsequent rernittances Ad~ustments on account of errors
in contributions requireil af any employee may be made by d~rect payments between the
employee and the Board
B Th~s amendment shall be effective on the
day of
, 1~
BOARD OF ADMINISTRATION ('~~
PUBLIC EMPLOYEES' RETIREME~3'YSTEM
@
~~
BY ~
CHIEF, CONTRACT SER S DIVISION
PUBLIC EMPLOYEES' I~~REMENT SYSTEM
,~o
CITY COUNCIL
OF THE
CITY OF SANTA MONICA
~
BY C1~
Pres~dmg O~cer ~
~ ~Ci
~ Wirness Date ~~'
~ ~
,~ a
,b-rt~r: ~
c~
~w
Clerk ~~`
~~
PERS-CON-702 (AMENDMENT)
(Rev 1192}