SR-8-B (97)f lperson m~sc/councillstafFrp#lcouncE33 2
Cauncil Meeting No~ember 24, 1998
TO Mayor and City Council
FROM City StafF
Drc~ ~" r ~ zq ~ ~
,
~s~~ Hov2~~
Santa Manica, California
SUBJECT Recommendatian t~ Hold a Public Hearing and ~irst Read~ng of an
Ordmance Authonzing an Amendment to the Contrac# Between the California
Public Emplayees' Retirement System and the City nf Santa Monica fo
Amend the Surv~~or Benefi# Qption for Local Fire Members and Repeaf~ng
~rdinance Number 1924 (CCS}
INTRODUCTION
On September 8, 1998, Counc~l adopted a resalution stating its intent to approve an
arnendment to the contract between the Califarnia Public Employees' Retirement System
(CaIPERS) and the City of Santa Monica to ~rovide Section 21573 Third Le~el of 1959
Sur~i~ar Benefits for local fire mem~ers only The Council also held a public heanng and
first reading of an ordi~ance which would amend said contract as ind~cated an
September 22, 1998, a second reading of the ordinance was held It was adopted as
Ordinance No 1924 (CCS} on that date Unfortunately, the Ordinance was adopted 14
days after the Resofution was approved, as opposed to the 20 day waitmg penod required
by CaIPERS CaIPERS has informed the City that the Ordinance must be readopted
Th~s report requests that Councd repeal Ord~nance No 1924 (CCS) and readapt the
ordinance so that the 20 day waiting per~od requirement can be met
DISCUSSION
The City af Santa Monica contracts with CaIPERS to pro~~de a retirement plan for its
~~
NOVZ4~
permanent safety {police and fire) ar~d misce~laneous (non-safety} employees As a
contracti~g agency, the City may amend its contract(s) to provide ~arious optio~al benefits
offered by Caf PERS
The 1959 Survi~or Bene~it option is an add~fional CaIPERS benefit which contracting
agenc~es can offer to employees who are not co~ered by Social Security The 1959
Survivor Benefit opt~an is modeled after the Social Security program in that it pro~ides a
monthly benefit to the fam~iies of CaIPERS members wha die prior to retirement
As Socral Security benefits ~mpraved o~er the years, CaIPERS has modified the 1959
Sunn~or Benefit option by pro~iding additional benefit Ee~els The Third Level provides a
higher monthly paymen# to the CaIPERS member's famEly than that which is pro~ided by
the basic program
As a part of the most recent Memorandum of Understanding (MOU) negotiated between
the City of Santa Monica and the Santa Monica Firefighters Associa#ion Local 1109, the
City agreed to amend its contract wi~h CaIPERS ta prfl~ide Secfion 21573 Third Levef of
1959 Survivor Benefits for local fire memb~rs only
BUDGETIFISCAL IMPACT
The cast ta the employee far this benefit is $2 QO per month, the same as the current cost
for the basic 1959 SurWi~or Benefit program The employer cos# is based on a large
exper~ence paol rather than the exper~ence of the City alone and may vary from year to
year A prouis~on ~r~ the Memorandum of Understand~ng bebrveen the C~ty of Santa Manica
and the Santa Mon~ca Firefighters Associat~on Locai 1109 requires each co~ered empfoyee
to be sub~ect ta a payroll deduction of up to $1 5Q ~er month to cover any additional costs
incurred by the City as a resuft of implementing the Third Le~ei af the 1959 Survi~or
Benefit As a result, there are no budget or financial impacts to the City because the
employer's con#ribut~on is capped at $1 5Q per month per employee
RECOMMENDATION
it ~s recommended that the Ctty Counaf adapt the attached ordmance which repeals
Ordinance No 1924 (CCS) and au#horizes an amendment to the cantract ~etween
CalPERS and the City of Sartta Monica ta provide Section 2~~73 LeWel Three af 1959
Sunnvor Benefits for local fire members only
Pre~ared By Karen Bancroft, Director of Personnel
Attachments Ordmance Authorizirtg an Amendment to the CaIPERS Contract
ORDINANGE NUMBER
(Ci#y Council Series)
AN ORDINANCE ~F THE CITY GOUNCIL O~' THE
CITY OF SANTA MONlCA AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL ~F THE CITY ~F SANTA MONICA AND
THE BOARD OF ADMINESTRATION QF THE
CALIFORNlA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND REPEALING
ORDINANCE NUMBER 1924 (CCS}
THE CITY COUNCIL OF THE CITY OF SANTA MQNICA DOES ORDAIN AS
FOLLOWS
SECTION 1 The contract between #he City CouncEl of the City of Santa Monica and
th~ Board of Admmistrafion, California Publ~c Employees' Retiremertt Syst~m ("Contract")
is hereby arnended A copy of the amendment ("Amendment") is attached hereto, marked
Exhi~it A, and incorporated herein by this reference
SECTION 2 The C~ty Manager is hereby authoriz~d, empowered, and directed to
execute the Ame~dment ta the Contract for and or~ behalf of the C~ty
SECTIDN 3 Ordinance No 1924 (GCS) is repeafed
SEGTION 4 Any pro~ision of the Santa Monica Municipal Code ar append~ces
thereto mconsistent with the provis~ons of this Ordmance, to the eactent of such
incons~stencies and no further, are also repealed or modified to that extent necessary to
affect the pro~isions af this Ordmance
SECTION 5 If any section, subsection, sentence, clause, ar phrase of this
Ordinance is for any reason held ta be invalfd or unconstitutional by a decision of any caurt
of any competent ~ur~sdiction, such decision shail not affect the ~alidity of the remaining
portions of this Ordinance The C~ty Council hereby declares that it would ha~e passed this
Ordir~ance, and each and every section, suasection, sentence, cla~se, or phrase not
declared mvalid or unconstitut~onal without regard to whether any port~on of the Qrdinance
would be subsequently decfared inWalid or unconstit~at~onal
SECTION 6 The Mayor shall sign and the City Cierk shall attest to #he passage af
th~s Ord~nance The City Clerk shall cause the same to be published once m the official
newspaper within 15 days after its adaption This Ordinance shall become effecti~e after
30 days from ~ts adoption
APPROVED AS TO FORM
,f f
~~' "`~~'ViVl.I.1~ / ~f Y'lN~~~
Marsha Jones Mp~rie
City Attarney
EXHIBI`I'
A~IE~DME~T TO CONTR4CT
BETV4'EE~ TH£
BOARD OF ADMINISTRATIO~
OF THE
PL?BLIC EMPLOYEES' RETIRE'VIE':~TT SYSTEM
A'~D THE
c~T~~ coL ~TciL
OF THE
CIT4" OF SAl~ TA MO'_~i IC ~
The Board of Admirustration. Public Emplo~ ees' Retirement Svstem. hereinafter referred to as
Board. and the ga~-ern~na bad~~ af abo~~e gublic agenc~~. hereanafter referred to as Public Aaenc~ .
ha~ ~~ta entered into a contract effecti~~e 7uh~ 1_ 194~. and «~messed Agrii ~. 14~~. and as
amended effeeut~e '4~arch 1, 13~Q. September 1. 19~1, June 1. 19~4_ 'Vovem~er I. I960,
Februar~- I, 196?. September 12. 196~.'_~lovetnber 1, 1969, No~~ember ?~. I97~. Januan ?0.
1974. ~larch 3. 197~. June ?S. 198I. I~1a~~ ~.i. 198~. Januan- 1. 199?. Aprrl ~'~. I99a and )anuar~
1~. 199fi ~~'hich prot~zdes for participation of Publ~c ~~enc~~ in said S~'stem. Board and Public
A~enc~- hereb~ aaree as tollo«~s
A Paragraphs 1 through 1? are hereh}• stn~ken from said contract as e~eeuted effectn~e
Januan~ i2. I996. and hereb~• replaced b}~ the follo~3•~ng paragraphs numbered I through
I? inclusi~~e
AI] ~~~ards and terms used here~n ~.~•h~ch are defined in the Publ~c Em~lo~~ees'
Retrrement La~~ shall ha~-e the meamng as defined thereir~ unless ather.~~zse
specificallti~ pro~°icied "Normal retirement aae" shall mean a~e 60 for local
m~scellaneous members, aee ~0 for local fire members and iocal pol;ce members,
and age ~? for ocean beach lifeguards
? Public A~~nc~- shall part~cipate in the Publ~c Ernplo~~ees' Ret~rement S}~stem frorn
and after Jul~ 1. 194~ making ~ts employees as hereinafter pro~-ided. members of
said S~-stem sub~ect to ajl pra~~isians of the Pub~ic Emplo~ees' Reurement La~~
except such as appl~- only on election of a contracting a~ene~- and are nat prov~ded
for here~n and to all amendments to sard La« hereafter enacted except those,
«•hich h~~ ~xpress provisions thereof. appl~~ oni}~ an the election of a contracung
a~enc~~
~ Emp~o~•ees of Pu~lic Agenc~' ~n the fallov~-in~ classes shall become members of
said Retirement S~•stem ercept such ~n each such class as are e~cluded bt~ la~~ or
th.~s agreenient
a Local Ftre Fighters (herein referred to as local safet}° membersj.
pL~AS~ ~~ ~~u~ S~~~~ ''~XHiB1T ~N~Y~
~ Local Police Officers (herein referred to as lacal safet~- members).
c Ocean Beach Life=uards {included as local safet~• members).
d Emplo~~ees other than local safet~' members (herein referred to as local
miscellaneous rnembers}
4 In addzti~n to the ctasses af emplo~~ees escluded from membership b} said
Re#irement Laz~, the foIlo~~-ing ~~asses of emplovees shall not become rnembers of
said Retirement S~-stem
NO ADDITIOI~AL EXCLUSIONS
~ The percentage of final compensation to be provided for each ~~ear of creciited
pr~or and current ser~~ice as a local miscellaneous member shall ~e determined in
accordance ~-rth Sect~on 2i3~~ of said Ret~rement La«~ {2°:o at age 64 Full)
fi The percentage of final compensauon to be provided far each year of cred~ted
pnar and current sen~ice as an ocean beach lifeguard shall be ~eterfnined in
accor~anee ~~~th Secnon ?1.i66 of said Ret~rement Lav~~ (One-half pa~~ at age ~~
Full )
- The percentage of final compensataon to be pro~~ided for eac~i r•ear of credited
pr~or and current serv~ce as a local police member and local fire member shall be
d~termined in accardance ~.~-rth Section 2136? of sa~d Retsrem~nt Lati~ {~10ro at age
~4 FU11 j
8 Public Agenc~ efected and eiects to be sub~ect to the follow~ing opt~onal
pra~-isions
a Secuon ?04? 1{"Local Safet~- tiiember" shall ~nclude ocean beach
life~uards of a e~t~• as descrtbed in Go~°ernment C.ode Sect~on ~0~`? 3)
~ SeCilon ?] 371 (Bas~c Le~~el of 19~9 Survrvor Benefits} for lacal
miscellaneous members and acean beach lifeguards
c Section ?i22? l{Special ~°~o Increase-14701 Leg~slation repealed said
Seci~on effecti~'e Januan~ l, 1980
d Sect~ons 216?~ and 21626 (Post-Ret~rement 5urvivor Ailovvance} for lacal
pol~ce members and local fre members on1}-
~~~~~~ ~v l~~v i ~~'.a~ J~rkH~B~T ON~Y~
e Section 200~~ (One-~"ear Final Com~ensation) for local po~~re members
and local fire members onl~
f Section 2102~ ('~1~litan Sen-ice Credit as Public Sen-ice), Statutes of
~976
g Secnan 2090 ~(T~~o Years Addiunnal Sen•ice Credu)
h 5ectian 21~7_ (Third Le~~el of 19~9 Sun•n~or Benefits) for local police
members and lacal fire members onl~~
9 Publzc AQenc~ sha11 contrib~re to said Retirement S~•stem tne C011iribUtlOnS
de#ermined b}- actuar~al ~~aluations of pnor and future sen~ice l~abilft~- u-ith respect
ta lacal mzscellaneous members and lacal safet~• members of said Retirement
S~•stem
10 P~blic Agenc~- sha~l also contribute to said Ret~rernent S~ stem as follo~i-s
a Per covered member. ~Q per montY~ on account of the liab~l~t~- for the 19~9
Surviti'or Benefits pro~-ided under Section ? 1~ 7~ of said Retirement La~~
(Sub~ect to annuai change ) In add~t~on, all assets and liabilities of Public
Agency and rts emplo}~ees shall be pooled rn a single account, based on
term insurance rates. for sur~~~~-ors of all local po~~ce members and local
fire members
b A reasonabie amount. as fixed b~- the Board. pa~~able ~r- one installment
v~~ith~n 60 dati•s of date of contract to co~°er the costs of admtnistertn~ said
S}-stem as ~t affects the empioyees of Pul~lzc A~encti~. not includ~n~ the
costs of special ~-aluations or of the penodic im°estigation and ~•aluations
required b~ ~a~;
c :~ reasonahle amount, as f xetl ~ti° the Board, pa}•able in ane znstal3ment as
the occas~ons arise. to col~er the costs of special ~•aluat~ons on account of~
employees of Public A~~nc~~. and eosts of the period~c im~esti~at~on and
~~aluations required b~• ~a«
11 Contnbutions required of Public A~enc~' and its emploti'ees shall be sub~ect to
ad~ustment b~- Board on account of amendments to the Pu~l~c Employees'
Retire~nent Lav--, and ~n account of the exper~ence under the Ret~rement S~~stem
as determined b}~ the per~odic ~nvestigat~on and valuation regu~red b}~ sajd
Retirement La~~•
12 Contnbut~ons reqt~ired of Public Agenc~ and its emplo~~ees shall be paid b~
Publzc A~enc~~ to the Reurement S~-stem v~7thm fifteen davs after the end of the
period to which said contributions refer or as ma.~ be prescnbed b~ Board
reg~lation If more ar less tl-~an the correct amount of contributxons is pa~d for an~
penod, proper ad3ustment shalI be made in connecuon «'ith subsequent
remittances Ad~ustments on account of errors fn convibut~ons required of an~
empla}~ee ma~ be made b~~ d~rect ~a`ments betv4°een the empSo~'ee and the Baard.
B This amendment shall be effect~~~e on the
BO~RD OF ~DMIi`ISTRATIOI`
PL~BLIC E:vfPL4YEES' RETIREivIENT S~STEM
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P~"BLIC E'~~1PLOY'EES' ~~$RE~'IENT SYSTEM
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