SR-6-G (118)
6~
.. NOV 0 7 19 5
\ . / - \ Santa Monlca, Californla
- perso~:~lSC cO~nCl~\CO~nCl14
Council Meeting- November 7, 1995
TO Mayor and Clty Councll
?ROfv':: City Staff
SUBJ~CT RecomITendatlOr. to Adopt Resolutlon of Intention to
Ane::.d Ccr:tract Between the Public Employees'
?etl:::-e'i'ent System and the Clty of Santa Mon::..ca to
Amend t~e SurVlvor Be~efit Optlon for Local Pollce
Members
INRO:=lUCTION
ThlS report requests that Council adopt the attached :::-esolution
statlng ~ts ~ntent to app~ove an amer.dme~t to t~e contract between
the Publlc ETnp2.oyees' Re~~renent Syste'1 (:?ERS) a::d the C::..ty of
Santa Mon:..ca -:.c- provlde Sect-lon 21382 4 'Third =..,evel of 1959
Surv::..vor Beneflts pu~suant to Article 6 {conmencing wlth SectloD
213801 for local police rrembers only 'The attached resolutlon
cOMplies wl::h the Drocedure req.....nred by PERS T:-lls report also
rea~ests that or: :\oveTber 1';, 1995 there be a public hearlYlg and
flrs': readlng of an orciinance whlcn wo~ld a~end sald contract as
u:dlcated.
:JISCUSSION
The Clty of Santa r-t:O!llCa contracts wit~ PERS to provlde a
retlrement plan for its pernanent safety (pollce and fire) and
mlsce_":"aneoc.s (non-safety) enp.ioyees As a co::::.ractlr:.g age:lcy ( the
Cl':Y may aTe:ld its contract(s) to provlde varlOUS optlonal beneflts
offered by PERS.
6G
..
NOV 0 7 1995
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The Th:..rd Level of 1959 Survivor Benefits lS an optlonal PERS
beneflt wnlch cOCltractlng agencles ca:1 offer to thelr safety or
Tlscellaneous employees who are CalPE~S members not covered by
Social Securlty benefit coverage due to e;nploY'Tient w2-th their
agency ~he prograTo was orlg~nally structured to provlae a monthly
beneflt to the faTl11es of CalPERS meIT'DerS wl:o dlQ not have
coverage under t~e federa::" pyogran ana. who dled prlor to
::::-etirement Unll'-':.e Social Secuyity, the 1959 S'lrV1VOr Ber..eflt
provldes r_o 1l1ont::ly d:.sablllty, or death benefit, If the mel'1ber
dles after retire~ent. For t~is yeaso:1, lt is less costly to the
werrber and employer
As Socla::' Securlty benefits have iMproved over the years, VarlOl.lS
levels of beneflts have been added to the 1959 Survlvor prograry.
offered by PE~S. The Thlrd Level provldes a tlgher monthly payment
to t~e nember's famlly than that WhlCh is provlded by the basic
program
As a part of ::he 1993-95 Me'l'orandum of Understanding (MOU)
negotla::ea between the Clty of Santa Monica and the Santa Monica
Pollee Of=lcers ASSoclatlon (SMPOAl, the Clty agreed to a~end ltS
contract Wlt~ PERS to provlde Sectlon 21382 4 Thlrd :::"'evel of 1959
SurVlvor 3eneflts for ::"ocal pollee nembers only Slnce there are
196 local "Galice officer posltior:s budgeted, the annual Clty
contribution to fund this option w:..ll be $4,704 if all of the
posltlons are filled for the en::ire 12-rronth perlod. The employee
cost lS $2.00 per month. Fund::..ng for the Third Level of 1959
- ------ - --
Survlvor Benefits lS based on the pooled exper:..ence of all
part~cipating agencles rather than lndlvldual agency experience.
3UDG3T!FISCAL IMPACT
The employer cost for sald option lS $2.00 per covered member per
'11c::n: ~ (bllled a::r~ua::'ly) commenclng wlth the amen.dment effectlve
da-:.e. Funds are :..ncluded 1n the budget for Flscal Year 1995-96 to
cover the cost of amendlng the City's contract wlth PERS to 9rovide
Thlrd Level :959 Survlvor Be~efits for local pollce ~e~bers.
RECOMM3XDAT=ON
It lS recommended that the Clty Councll adopt the attached
resolution indicating lts lr:.tent to approve an amendment to the
contract between the Public Elfployees' Retlrement System and the
Cl~y of Santa Monlca to provlde Sect:..cn 2:382 4 Level T~ree of 1959
Survlvor Bene:::lts pursuant to Art:..cle 6 (cO'1lmenclng wlth Sectlon
21380 ) for local police members only. It 18 further recommended
t'::.at a publlC hearlng be held on November 14, 1995 and that there
be a flrs~ readlng of an Ordlnance to amend sald contract
Prepared 3y Karen Bar:.croft, Dlrector of Personnel
At-:.ach'ne::t. Resolutior: of Intentlon
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f:atty\muni\laws\mjm\pers.res
City Council Meeting 11-7-95 Santa Monica, California
RESOLUTION NUMBER 8952 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA DECLARING ITS INTENTION
TO APPROVE AN AMENDMENT TO THE CONTRACT
BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY OF SANTA MONICA
WHEREAS, the Public Employees' Retirement Law permits the
participation of public agencies and their employees in the Public
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
WHEREAS, one of the steps in the procedures to amend this
contract is the adoption 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 following is a statement of the proposed change:
To provide Section 21382.4 Third Level of 1959
Survivor Benefits pursuant to Article 6
(commencing with Section 21380) for local
police members only.
1
,.
.
r~
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City council hereby gives notice of its
intention to approve an amendment to the contract between the 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
IUJLd_ ~;C<..~ Luu ~I
MARSHA JONE& MOUTRIE
city Attorney
2
..
q\
Adopted and approved thIS 7th of November, 1995
M~
Mayor
I hereby certIfy that the foregomg ResolutIon 8952 (CCS) was duly adopted at a meetmg
of the CIty CouncIl held on the 7th of November, 1995 by the followmg vote
Ayes CouncLl members Abdo, Ebner, Genser, Greenberg, Holbrook, O'Connor,
Rosenstem
Noes CouncIl members None
Abstam CouncIl members None
Absent CouncIl members None
ATTEST
'-- ~~~
CIty Clerk
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EXHffiIT
Al\1E~1)ME~T TO CONTRACT
BETWEEN THE
BOARD OF ADl\DNISTRATIO~
OF THE
PUBLIC E:\-IPLOYEES' RETIREMEi\l SYSTEM
Ai'ffi THE
CITY COl.JNCIL
OF THE
CITY OF SANTA MOl'"lCA
The Board of AdmInistration, Pubhc Employees' Renrement System, heremafter referred to as Board,
and the governmg body of above pubhc agency, heremafter referred (0 as Pubhc Agency, haVIng entered
mto a contract effectIve July 1. 1944, and wItnessed Apnl 5, 1944, and as amended effectlve 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 PublIc Agency m 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 terms used herem which are defined In the PublIc Employees' Retlfemem .
Law shall have the meanmg as defined therem unless otherwise specIfically proVided
"Normal retlTement age" shall mean age 60 for local miscellaneous members, age 50 for
local fire.and pohee members, and age 55 for ocean beach lIfeguards
2 Public Agency shall partICIpate III the Pubhc Employees' Retlrement System from and
after J ul y 1, 1944 makmg Its employees as heremafter provIded, members of saId System
subject to all prOViSIOns of the PublIc Employees' Reuremem 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. which by express proVISIOns
thereof. apply only on the eleCtIon of a contracnng agency
.., Employees of Pubhc Agency m the followmg classes shall become members of saId
.:)
Reurement System except such In each such class as are excluded by Jawor thIS
agreement
a Local FlIe fIghters (herem referred to as local safety members),
b Local Pohce Officers (herem referred to as local safety members),
c Ocean Beach LIfeguards (mcluded as local safety members),
d Employees other than local safety members (herein referred to as local
nusceIIaneous members)
.
4. In addItIon to the classes of employees excluded from membershIp by saId Retlfemem
Law, the followmg classes of employees shall not become members of saId Reurement
System
NO ADDITIONAL EXCLUSIONS
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5 The percentage of final compensatIOn to be provIded for each year of credIted pnor and
currem servIce as a local mIscellaneous member shall be determmed m accordance wnh
SectIOn 21251 13 of saId Retlrement Law (2 % at age 60 Full)
6 The percentage of final compensation to be provided for each year of credIted prior and
current service as an ocean beach lIfeguard shall be deterrruned In accordance with
Section 21252 1 of said RetIrement Law (One-half pay at age 55 Full)
7 The percentage of final compensation to be proVided for each year of credited pnor and
current servIce as a local pohce or fire member shall be detemuned m accordance WIth
SectIOn 2125201 of said Retuement Law (2% at age 50 Full)
8 Publ1c Agency elected and elects to be subject to the followmg optlonal provlSlons
a Sectlon 20019 3 ("Local Safety Member" shall Include ocean beach lifeguards of
a CIty as descnbed In Government Code Section 200193)
b Section 21382 (BasIc Level of 1959 SurvIvor Benefits) pursuant to Article 6
(commencmg WIth Section 21380) for local mIscellaneous members, local fire
members and ocean beach hfeguards
4
c SectIOn 21222 1 (SpecIal 5% Increase - 1970) Legislation repealed said Section
effectIve January 1, 1980
d SeCtions 21263 and 21263 1 (Post-Renremem SurviVor Allowance) for local
polIce and fire members only
e Section 20024 2 (One-Year Fma! CompensatIon) for local polIce and fire
members only
f SectIon 20930 3 (MIlItary Service CredIt as Pubhc ServIce), Statutes of 1976
g Secuon 20818 (Two Years AddItIOnal Service Credit)
h SectIon 21382 4 (Thud Level of 1959 SurvIvor Benefits) pursuant to Article 6
(commencmg WIth Section 21380) for local pollce members only
9 PublIc Agency shall contnbute to saId Retirement System the contnbutIons determmed
by actuanal valuations of pnor and future servIce lIabIlIty 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
liabIlity for the 1959 SurvIVor Benefits prOVIded under SectIon 21382 4 of saId
RetIrement Law (Subject to annual change) In addItIOn, all assets and .
lIabIlItIes of Public Agency and Its employees shall be pooled m a smgle account,
based on term msurance rates, for survIVors of aU!ocal pohce members
-
b A reasonable amount, as fixed by the Board, payable mane mstallment wlthm
60 days of date of contract to cover the costs of admmlStenng saId System as I[
affects the employees of PublIc Agency, not mcludmg the costs of specIal
valuauons or of the penodIC mvesngatlOD and valuatIOns reqUIred by law
C A reasonable amount, as fix.ed by the Board, payable m one mstallment as the
OCCasIOns anse, to cover the costs of specIal valuauons on account of employees
of PublIc Agency, and costs of the pen OdiC investigatIOn and valuatlons reqUired
by law
11 ContnbutIons reqUIred of Public Agency and its employees shall be subject to adjustment
by Board on account of amendments to the PublIc Employees' Renrement Law, and on
account of the expenence under the RetIrement System as de[emllned by the penodlc
lfivesngatlon and valuatIon requIred by said Retlrement Law
12 Contnbut!ons reqUired of PublIc Agency and I[S employees shall be paId by PublIc
Agency to the RetIrement System wlthm fifteen days after the end of the penod to whIch
said contributions refer or as may be prescribed by Board regulatiOn If more or less
than the correct amount of contnbutIons 15 paId for any penod, proper adjustment shall
be made III connectIon WIth subsequent rermttances Adjustments on account of errors
m contnbutlOns reqUired of any employee may be made by dIfeet payments between the .
employee and the Board.
B ThIS amendment shall be effectlve on the day of ,19_
BOARD OF ADMINISTRATION 1\ CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMa~YSTEM OF THE
CITY OF SANTA MONICA
~ ~
\\#
BY _~ BY ~
CHIEF ACTU~'\j'\ Presldmg Officer ~C
ACTUARIALrQf CE #
PUBLIC 8~IhYEES' RETIREMENT SYSTEM lS
(..~ [j~
~v -0
~~ Wlmess DaTe',
~'-'
~')
(..
~~
"(~ '
Clerk
.
AMENDMENT
PERS-CON-702A (Rev 3/95)
.
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CORRECTED RESOLUTION FOR
ITEM 6G
..
f:atty\muni\laws\mjm\pers.res
City council Meeting 11-7-95 Santa Monica, California
.
RESOLUTION NUMBER (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA DECLARING ITS INTENTION
TO APPROVE AN AMENDMENT TO THE CONTRACT
BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY OF SANTA MONICA
-
WHEREAS, the Public Employees' Retirement Law permits the
participation of public agencies and their employees in the Public
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 Lawj
and
WHEREAS, one of the steps in the procedures to amend this
contract is the adoption 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 fallowing is a statement of the proposed change:
To provide Section 21382.4 Third Level of 1959
Survivor Benefits pursuant to Article 6
(commencing with Section 21380) for local
police members only.
1
...
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby gives notice of its
intention to approve an amendment to the contract between the 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
I Lltl.{//- iL~~(~ <-- Lu" l {-z-I
MARSHA JONE&}MOUTRIE
City Attorney
2
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EXHffiIT
A.'1E~"DME:\" TO CONTRACT
BETWEEN THE
BOARD OF ADMOOSTRATION
OF THE
PUBLIC EMPLOYEES' RETIREME~" SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF S.4l'ilA MOl\'ICA
The Board of AdmInistratIOn, PublIc Employees' Retuement System, heremafter referred to as Board,
and the governmg body of above publIc agency, heremafter referred to as Publtc Agency, havmg entered
mto a contract effectIve July 1. 1944, and wItnessed Apnl5, 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, )981. May 13,
1984, January 1, 1992 and Apnl 25, 1993, which provides for pamcIpatJon of Public Agency m saId
System, Board and Pubhc Agency hereby agree as follows
A Paragraphs 1 through 12 are hereby stncken from saId contract as executed effective AprIl 25,
1993, and hereby replaced by the followmg paragraphs numbered 1 through 12 mclusIve
1 All words and tenus used herem whIch are defined In the Publtc Employees' RetIrement .
Law shall have the meamng as defined therem unless otherwIse specIfically proVided
"Normal retlremem age" shall mean age 60 for local mIscellaneous members, age 50 for
local fire.and polIce members, and age 55 for ocean beach hfeguards
'2 Pubhc Agency shall partIcIpate m the Publ1c Employees' Remement System from and
after July 1. 1944 makmg Its employees as heremafter prOVIded, members of saId System
subject (0 all provlslOns of the Pubhc Employees' RetIrement Law except such as apply
only on electlOn of a contractIng agency and are nO[ proVIded for herem 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 Pubhc Agency m the followmg classes shall become members of saId
Retlrement System except such III each such class as are excluded by law or thIS
agreement
a Local FIre FIghters (herem referred to as local safety members) I
b Local PolIce 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
mIscellaneous members)
.
4 In addItiOn to the classes of employees excluded from membershIp by saId RetITemem
Law, the followmg classes of employees shall not become members of said Retirement
System
NO ADDITIONAL EXCLUSIONS
.
-
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 determmed III accordance WIth
Section 21251 13 of saId RetIrement 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 lIfeguard shall be detemuned m accordance WIth
SectIOn 21252 1 of saId Reuremenl Law (One-half pay at age 55 Full)
7 The percentage of final compensation to be proVIded for each year of credIted pnor and
current servIce as a local pollee or fire member shaH be determmed m accordance WIth
Section 2125201 of said Reurement Law (2% at age 50 Full)
8 PublIc Agency elected and elects to be subject to the followmg optIonal prOVISIOns
a Sectlon 20019 3 ("Local Safety Member" shall mclude ocean bea€h lIfeguards of
a cuy as descnbed in Government Code Seetlon 20019 3)
b Seetlon 21382 (BasIC Level of 1959 Survivor Benefits) pursuant to ArtIcle 6
(conunencmg WIth Secuon 21380) for local nuscellaneous members, local fire
members and ocean beach hfeguards
.
e SectiOn 21222 1 (SpeCial 5% Increase - 1970) Leglslanon repealed said SectIon
effecuve January 1, 1980
d SectIOns 21263 and 21263 1 (Post-Retirement SurvIvor Allowance) for local
pohce and fire members only
e SectIOn 20024 2 (One-Year Fmal CompensatIOn) for local pollce and fire
members only
f Sectlon 209303 (MIlItary ServIce Credn as Pubhc Service), Statutes of 1976
g Secnon 20818 (Two Years Addl1lOnal ServIce Credn)
h SectIon 21382.4 (ThIrd Level of 1959 SurvIvor Benefits) pursuant to Article 6
(conunencmg WIth Section 21380) for local pohee members only.
9 PublIc Agency shall contrIbute to said Retirement System the contributions determmed
by actuarIal valuations of prIor and future service hablluy WIth respect to local
nuscellaneous and safety members of said Rellrement System
10 Pubhc Agency shall also contnbute to said RetIrement System as follows
a Pubhc Agency shall contnbute $2 00 per member. per month on account of the
habllny for the 1959 SurvIvor Benefits prOVIded under Section 213824 of saId
Reurement Law (Subject to annual change) In addItIon, all assets and .
habihues of Pubhc Agency and Its employees shall be pooled m a single account,
based on term Insurance rates. for survIVors of all local pohee members.
~
b A reasonable amount, as fixed by the Board, payable mane mstallment wIthm
60 days of date of contract to cover the costs of adnumstermg saId System as It
affects the employees of PublIc Agency, not mcludmg the costs of speCIal
valuanons or of the penod!c lllvesngatlon and valuatIons reqUlred 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 Pubhc Agency, and costs of the peflod!c mvesugauon and valuallons reqUlred
by law
11 Contnbutlons requued of PublIc Agency and Its 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 RetIrement System as detemllned by the penod!c
mvestIgatIon and valuation requIred by saId Retirement Law
.
12 Contnbunons reqUlred of Public Agency and ItS employees shall be paid by Pubhc
Agency to the Retlrement System wIthm fifteen days after the end of the penod to whIch
said contnbutlons refer or as may be prescnbed by Board regulation If more or less
than the correct amount of comnbutlOns IS paId for any penod, proper adjustment shall
be made m connectIon WIth subsequent remIttances Adjustments on account of errors
m comnbutlons requued of any employee may be made by dIfect payments between the .
employee and the Board
B ThIS amendment shall be effective on the day of ,19_
.
BOARD OF ADMINISTRATION \\ CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMa~YSTEM OF THE
CITY OF SANTA MONlCA
~
\\4 ,\'
BY ~
BY ~
CHIEF ACTUA~' Presldmg Officer ~a
ACTUARIALrQ.FFICE #
PUBLICD~OYEES' RETIREMENT SYSTEM {-S
<.,.~ [2;~
Sv -~
~~~ Witness ~"
a~
<.-~
~ftest -
"'<.~' - -
Clerk
AMENDMENT
PERS-CON-702A (Rev 3/95)
.
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