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SR-8-F (7) 8F f.\person:misc/council\counci15 Council Meeting: November 14, 1995 Santa Monica, California NOV lit 1995 TO: Mayor and Clty Council FROM: City Staff SUBJECT: Ordinance Amending the Contract between the City of Santa Monica and the Board of Administration of the Callfornia PubllC Employees Retirement System (PERS) 1 Amending the Survivor Benefit Option for Local Police Members INTRODUCTION This contract amendment implements a provision of the 1993 Memorandum of Understanding wlth the Santa Monica Police Officers Associatlon. At its meeting on November 7, 1995, the City Council adopted a Resolution of Intention to amend the contract between the Publlc Employees Retirement System and the City of Santa Monica to provide Third Level 1959 Survlvor Benefits for local police members, In accordance with the PERS rules and regulations pertainlng to the amendment of contracts between PERS and partlclpating public agencles, a public hearing must be held regardlng a proposed amendment and there must be a first reading of an Ordinance to amend the PERS contract. The attached Ordinance complles with the procedure required by PERS. BUDGET/FISCAL IMPACT The employer cost for said option is $2,00 per covered member per month (bllled annually) commencing with the amendment effective date, Funds are included in the budget for Flscal Year 1995-96 to cover the cost of amending the City's contract with PERS to provide 8F NOV 1 ,. 1995 Third Level 1959 Survivor Benefits for local police members, RECOMMENDATION It is recommended that there be a public hearlng and first reading of the attached Ordinance which would amend the contract between the Board of Administration of the Californla Public Employees Retlrement System (PERS) and the City of Santa Monica to provide Third Level 1959 Survlvor Benef~ts for local police members. Prepared By: Attachment: Karen Bancroft, Director of Personnel Ordlnance f:\atty\muni\laws\lbc\pers City Council Meeting 11-14-95 Santa Monica, California ORDINANCE NUMBER (CCS) (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 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. That an amendment to the contract between the City Council of the city of Santa Monica and the Board of Administration, California Public 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 is hereby authorized, empowered, and directed to execute said amendment for and on behalf of the City. SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this 1 Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. 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 official newspaper within 15 days after its adoption. This Ordinance shall become effective after 30 days from its adoption. APPROVED AS TO FORM: ~ MARSHA JO MOUTRIE City Attorney 2 EXHIBIT AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SANTA MONICA The Board of AdtmmstratIon, PublIc Employees' RetIrement System, heremafter referred to as Board, and the govermng body of above pubhc agency, hereInafter referred to as Pubhc Agency, havmg entered mto a contract effective July 1, 1944, and wItnessed Apnl 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, June 28, 1981, May 13, 1984, January 1, 1992 and Apnl 25, 1993, WhICh proVIdes for participatIon of Pubhc Agency III said System. Board and PublIc Agency hereby agree as follows A Paragraphs 1 through 12 are hereby stncken from said contract as executed effective Apnl 25, 1993, and hereby replaced by the followmg paragraphs numbered 1 through 12 mcluslve 1 All words and tenns used herem whIch are defined m the Pubhc Employees' Rettrement Law shall have the meamng as defined therem unless otherwise speCifically prOVIded "Normal retIrement age" shall mean age 60 for local mIscellaneous members, age 50 for local fire and pohce members, and age 55 for ocean beach hfeguards 2 Pubhc Agency shall partiCipate m the Pubhc Employees' RetIrement System from and after July 1. 1944 makmg Its employees as heremafter proVIded. members of said System subject to all proVISIOns of the Pubhc Employees' RetIrement Law except such as apply only on electIon of a contractmg agency and are not prOVIded for herem and to all amendments to saId Law hereafter enacted except those, winch by express prOVISIOns thereof, apply only on the electIon of a contractmg agency 3 Employees of PublIc Agency m the followmg classes shall become members of said RetIrement System except such m each such class as are excluded by law or thIS agreement a Local FIre Fighters (herem referred to as local safety members), b Local Pollee Officers (herem referred to as local safety members), c Ocean Beach LIfeguards (mcluded as local safety members), d Employees other than local safety members (herem referred to as local nuscellaneous members) 4 In addItIon to the classes of employees excluded from membershIp by Said Reurement Law, the followmg classes of employees shall not become members of said RetIrement System NO ADDITIONAL EXCLUSIONS EXHIBIT A 5 The percentage of final compensatIon to be prOVided for each year of credIted pnor and current service as a local miscellaneous member shall be deternnned In accordance WIth SectIon 21251 13 of saId Rel1rement Law (2% at age 60 Full) 6 The percentage of final compensatIon to be proVided for each year of credIted pnor and current servIce as an ocean beach hfeguard shall be detemuned m accordance WIth SectIon 21252 1 of saId Retirement Law (One-half pay at age 55 Full) 7 The percentage of final compensal1on to be prOVided for each year of credIted pnor and current servIce as a local pohce or fire member shall be deterrmned In accordance with SectIon 21252 01 of saId RetIrement Law (2 % at age 50 Full) 8 Pubhc Agency elected and elects to be subject to the followmg optional proVISIOns a SectIOn 20019 3 ("Local Safety Member" shall Include ocean beach hfeguards of a CIty as descnbed m Government Code SectIon 200193) b SectIOn 21382 (BasIC Level of 1959 SurvIvor Benefits) pursuant to ArtIcle 6 (connnencmg WIth Secuon 21380) for local nuscellaneous members, local fire members and ocean beach hfeguards c SectIon 21222 1 (SpeCIal 5 % Increase - 1970) Legislal10n repealed SaId Secl10n effectIve January 1, 1980 d SectIOns 21263 and 21263 1 (post-RetIrement SurvIVor Allowance) for local polIce and fire members only e SeCtIon 20024 2 (One-Year FInal CompensatIon) for local pohce and fire members only f SectIon 209303 (Mllltary ServIce CredIt as PublIc ServIce), Statutes of 1976 g SectIon 20818 (Two Years AddItIonal Service CredIt) h SectIon 213824 (ThIrd Level of 1959 SurvIvor Benefits) pursuant to Arncle 6 (connnencmg WIth Secuon 21380) for local polIce members only 9 PublIc Agency shall contnbute to saId RetIrement System the contnbutIons deternnned by actuarIal valuauons of pnor and future servIce habIllty with respect to local mIscellaneous and safety members of saId Retirement System 10 PublIc Agency shall also contnbute to saId RetIrement System as follows a PublIc Agency shall contnbute $2 00 per member, per month on account of the habIhty for the 1959 SUrvIVor Benefits proVIded under SectIon 21382 4 of said RetIrement Law (Subject to annual change) In addItiOn, all assets and habllIues of PublIc Agency and ItS employees shall be pooled m a smgle account, based on tenn Insurance rates, for survIvors of all local polIce members b A reasonable amount, as fixed by the Board, payable In one Installment wIthm 60 days of date of contract to cover the costs of adnuillstenng said System as It affects the employees of PublIc Agency, not mcludIng the costs of speCial valuations or of the penodlc InvestigatIOn and valuatlOns reqUIred by law C A reasonable amount, as fixed by the Board, payable m one Installment as the OCCasIOns anse, to cover the costs of speCial valuatIOns on account of employees of PublIc Agency, and costs of the penodlc Investlgatlon and valuatiOns reqUired by law 11 Contnbutlons reqUIred of Pubhc Agency and 11S employees shall be subject to adjustment by Board on account of amendments to the PublIc Employees' RetIrement Law. and on account of the expenence under the Renrement System as detenruned by the penodlc lDvesnganon and valuatIOn reqUired by said Retirement Law 12 Contnbunons reqUired of PublIc Agency and ItS employees shall be paid by Pubhc Agency to the Retirement System wlthm fifteen days after the end of the penod to which said contnbunons refer or as may be prescnbed by Board regulatlon If more or less than the correct amount of contnbunons IS paid for any penod, proper adjustment shall be made m connection With subsequent remittances Adjustments on account of errors In contnbutlons reqUired of any employee may be made by dIrect payments between the employee and the Board B ThiS amendment shall be effective on the BOARD OF ADMINISTRATION ,\ PUBLIC EMPLOYEES' RETIRE~~ SYSTEM ~ \\$ BY \. CHIEF ACTU~~ ACTUAR!#.. ~FICE PUBLIC -BMPLOYEES' RETIREMENT SYSTEM r\ ',. <:::)"-' ~~ ~<<' ~ AMENDMENT PERS-CON-702A (Rev 3/95) .- day of ,19_ CITY COUNCIL OF THE CITY OF SANTA MONICA BY Presldmg Officer " ...\ ~, .. a~ ,~, f~v .,v~ , , ,-~-- ~ .."- W 1!!}eSS Date "\ ,..- . '" .....\-..... ....-v t__.~ ...... -:'" Attest Clerk