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F 1CMANAGERISTFRPRTSICQUNC131 Santa MonECa, Califomia
Council Meeting September 8, 1998
TO Mayor and Csty Council
FROM Gity Staff
SUBJECT Recommendation to Adopt Resolution of Intention ta Amenc! Cantract
Between the Cal~forr~ia Public Employees' Retirement System and the City
of Santa MonECa to Amenci the Surv~vor Benefit Option for Lacal Fire
Members and to A~thorize the City Manager to Execute the Agreement #o
Pool 1959 Survivar Benefits Assets and Liabilities Be#ween the Board of
Administration of the Publac Employees' RetErement System and the City
Counctl af the City of Santa Mon~ca anc~ to Hold a Public Hearmg ancf F~rst
Readmg of an Ordinance to Amend Said Contract as fndicated
Introduction
Th~s repor~ reguesfs that Council adapt fhe attached resalution s~ating its inten~ to appro~e
an amendment to the contract between the California Public Employees' RetErement
System (CaI~ERS) and the Crty of Santa Man~ca to prorrrde Sectron 21573 Third ~e~el af
1959 Survi~or Benef~ts far ~ocal fire members anly This report also requests Ehat the City
Co~~c~~ author~ze the C+ty Manager to execute the agreement to poo! ~ a59 surv~vor
benef~ts assets and liabilities between the Board of AdministratEOn of the Publ~c
Employees' Retirement System an~i the City Council of the City of Santa Manica. T~e
attached resofutian and agreement comply with the procedure required by CaIPERS TE~~s
report alsa requests that on September 8, 1998 there be a p~ablEC hearing and first reading
of an ordinance which would amend said contract as indicated ~"he ordinar~ce is alsa
attached
~
SEP - 8 '~8
Discussian
The CEty of Santa Monica contracts with CafPERS to pro~~de a retrrement plan for its
permanent safety (palioe and fire) and miscellaneous (non-safety) employees As a
contrac#ing agency, the C~ty may amen~ its contract{s} ta provide ~arious optional benefits
offered by CaIPERS
The 1959 Survi~or Benefi# o~tion is an additional CaIPERS benefit which contrac#~ng
agencies can offer to employees who are not co~ered by Social Security The 1959
Survi~ar Benefit option is modeled after the Social Security program in that ~t pro~ides a
manthly ben~fit to the families af Ca1PERS members who die priar #o retirement
As Social SecurGty benefits impro~ed over #he years, CaIPERS has modtfied the 1959
Survivor Benef~t option by providmg addit~onaf benefit Ee~efs The Third Level pro~ides a
high~r monthly payment to the Ca1PERS member's famify than that which is pro~ided by
the basic program
As a part of the mast recent Memorandum of Undsrstanding (MOU) negotiated b~tweer~
~he City of Santa Mvnica and the Santa Monica Firefighters Association Local 1109, the
City agreed to am~nd its contract with CaIP~RS tQ ~ro~ide Section 21573 Third Level of
1959 Survivor Benefits far local fire members onEy
Budget/Fiscal Impact
A provision in the Memorandum of Understanding between the C~ty of Santa Mon~ca and
the Santa Manica Firefighters Associat~ort LocaE 1109 requires each co~ered employee to
be sub~ect ta a payrof! deduction of up to $1 50 per month to ca~er any additional casts
incurred by the City as a result of implementing the Third Le~el of the 1959 Survivor
Benefit As a result, there are ~o budget or frnancial impacts to the City because the
employer's contribution is capped at $1 ~0 per month per emplayee
Recommendatian
It ~s recommended that the City CounciE authorize the City Manager ta execu~e the
a#tached Agreement to poal '1959 survi~ar benefits assets and iiabilities between the
Board af Admmistration of CaIPERS and t~e City Counc~l of the City of Santa Monica and
ta adapt the attached resolution indicating its intent ta approve an amendment ta the
contract betweer~ CaIPERS and the C~ty of Santa Mon~ca to prov~de Section 2~ 573 ~evel
Three of 1959 Sur~i~or Benefits for local fire members only [t is further recommended that
on September $, 1998 there be a first reading of the Ordmance to amend said contract
Prepared By Karen Bancroft, Director of Persannel
Attachments Resoiution af Intentian
Agreement to Pool 1959 Sunri~or Benefi#s Assets and Liabilities
Ordinance Autharizing an Amendment to th~ CaIPERS Contract
St
f
1
~
RESC3I,L•`Tl~ii ~f ~315
{CITY C~UNC1~ SERiESj
A RESO~UTIDN flF ~NTENT~C~N T4 APPR4VE AN AMENDMENT TO CQNTRACT
BE"T~VVEEN THE BOARD OF ADfilI1N~5TRAT~ON
4F THE PUBLiC ~MP~.DYEES' RETIREMENT SY~TEM
AND THE CfTY GOUNG~~. O~ TH~ CiTY O~' S~NTA MON~CI~
1lVHEREAS, ti~e Pu~fic ~m~loye~s' Ret~rement ~aw permEis tf~e partEC~pafEO~ af
p[~~I~c agenc~~s ar~d th~tr em~~oye~s En the Public Empfaye~s` Retfremet~i Syst~m by tl~e
executian v# a con#ract, ar~d sets #Qrt~i #he p~~csd~re by wh~~h said pu~l+c agenc~es may
eiect to sub~ec# #hems~lves and the~r empioyees t~ amer~dments to sa~d L.aw, and
WHERE~S. on~ af t~E st~~s ~n the pracedcares #a amsnd th~s con#~act ~s t~e
ado~#~on by the g~v~rrnrrg ~~dy of #h~ pu~lrc ag~~cy ~f a R~saiut~~n g~v~ng rtotrce ~f ~ts
~nter~tion ta a~pravs a~ ~mer~dme~# to said contract, wh~c~ Resolu#ian shalf co~tafn a
summar~r pf ~#~e ct~ange proposed ~r~ sai~ cc~n#ract, a~d
~11HEREAS, t#~e fflf~owing ~s a s~at~ment of the prapos~d chas~ge
To provicie SectEOn 21573 {Thfrd ~.e~el of 13~9 Sunr~~or Benefts} €or ~aea~
frre members
Na1N. TH~REFQRE. B~ iT RE54LV~D THAT THE CiTY COUNC~L C}~ THE CITY
4~ SANTA M{)lViCA do~s her€;by gEVe nfl#~c~ af tnt~n~~o~ to approve an amer~dm~~# #~ the
conkract t~etweer~ sa~cf pubt~c ag~r~cy and #he Baard nf A~mtn~s~ra#ion af t~~ Pub~fc
Empioyees' Ret~reme~t Sys#~m, a copy ~f saE~ amen~mer~t ~e~r~g a~ia~hed he;~#o, as ar~
"Exh~~~#" and ~y th~s refe~ence made a~art her~o~
,
`
T~e C~ty Ct~rk sha~i certr#y #o the adaptEan of thrs Rasofut~or~, and the~cefa~#h and
~he~eafter t~~ same shall be it~ f~~l f~rce ~nd effect
APPROVEa A5 T4 FQRM
~IIJ,~.~'l0
NlARSHA JON~$ M~UTRtE
GEty Attr~~ney
ti
.
Adopted and approved this 8th of Se~tember, 1998
~ ~4~4~` ~ ~fsi ~`'
Robert Holbrool(, Mayar
!, Maria M Stewart, C~ty Cierk of the City of Santa Monica, do hereby certify that
the foregoing Resolution 9315 (GCS) was duly ado~#ed at a meetmg of the Santa
Monica City Couneil held vn the 8th of September, 1998 by t#~e following vote
Ayes CouncElmembers
Noes Councilmembers
Abstain Ca~ncitmembers
Absent CauncElmembers
Ebr~er, Femste~n, Genser, Greer~berg, Holbrook,
O'Connor
None
Nane
Rasenstein
ATTEST
~ ~.
Maria M Stewart, CEty Clerk
AGREEMENT ~ ?~~-I ~C~
TO POOL
1959 SURViVOR BE~\iEFITS ASSETS AND LIABILITIES
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY QF SANTA MOIVICA
WHEREAS, Government Code Sectaon 21573 provides for a single employer rate to be
established to provide benefits under said Sect~on on account af inemUers ernployed
by contractxng agencies electuig ta Snclude the provision of said Section in their
contracts; and
WHEREAS, Go~ernment Code Section 21573, requu~es poalmg of all assets and liabilrties of al~
contracting agencies sub~ect to said Sect~on,
NOW, THEREF~RE BE IT AGREED, that assets and liabilrties of the Ciry af Sa~ta Monica and
its cavered employees shail be pooled pursuant ta the provis~ons of Gover~unent
Codes Section 21573.
BOARD OF ADMINISTRATION
PUBLIC EMPLQYEES' RETIREMENT SYSTEM
BY
KENNETH W. MARZION, CHIEF
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
ATTEST:
MARIA M STEWART
CITY CLERK
CITY OF SANTA MONICA
BY
JOHN JALILI, CITY MANAGER
Date
APPROVED AS TO FORM-
~~ ~~
MARSHA JOI~S MOUTRIE
CITY ATTORNEY
PERS-CON-59 (Rev 7/96)
vv! y ~~ (~V
AME\~~VIENT TO CONTRACT
BET~'4~ EEN THE
BOARD OF ADR•iII~ISTRATION
OF THE
PtiBLIC EMPLOYEES' RETIREME\T SYSTE117
Ar1D THE
CITY CQUNCIL
OF THE
CITY ~F SA1iTA MOI~ICA
EXHIBIT
~-e- ~~ ~a,~,~
~~b ~[8 -r ~ 1 S
The Board of Admimstration, Public Emplo~~ees' Retirement System, hereinafter referred to as
Board, and the go~~ern~ng bodv of above public agenc~~. hereinafter referred ta as Public ~genc~~.
~"laZ~illQ entered mto a contract effectij~e Jul~~ l, 194=~, and «-itnessed April 5. 19~4, and as
amended effective March 1. 1950. September 1, 1951. June 1, l 9~4, 1 o~-ember I. 1960.
Februar~~ 1. 1962. SEptember 12, 1965, ~io~~ember 1, 1969. ~Io~~ember 25. 1973. Januar~~ 20.
1974. ~~larch 3, 1974. ]une 28. 1981. Ma~~ 13, 198~. Januan- 1. 1992. :~przi ?~. 1993 and 7anuar~,~
1?, 1996 v~'hich proti•-ides for parti~ipation of Public Agenc~° in said S~~stem, Board and Publi~
Agenc~~ hereb~~ a~ree as follo~~~s
:~ Paragraphs 1 through 12 are hereb~~ stncken from said contract as e~ecutzd effective
Januar~~ 12, 1996_ and hereb~~ replaced b~- the follo~.i~ing paragraphs numbered 1 through
12 inciusiti~e
All «~ords and terms used herein ~.~-hich are defined in the Public Emplo~ ees'
Retirement La~~~ shali ha~-e the meanme as defined therein unless otherr~~ise
specificall~- pro~~ided "\ormal retirement a~e" shall mean age 60 far local
mzscellaneous members, age 50 for local fire members and local police members.
ar-d age ~~ far ocean beach lifeguards
? Public Agencv shall participate in the Public Emplo~~ees' Ret~rexnent St-stem from
and after JuI~- 1, 1944 mak~ng its emplo~-ees as hereinafter pro~~ided. members of
said System sub~ect to all provisians of the Public Emplo~-ees' Retirement La~~~
elcept such as apply~ onl~~ on election of a contracting agenc~- and are not pro~~ided
for herem and to all amendments to said Lati.~ hereafter enacted e~cept those.
~;~hich b~~ e~press pra~~isions thereof, appl~~ onl~~ on the election of a contracting
agenc~~
3 Emplo~-ees of Publ~c Agenc~~ ~n the follo~~~ng classes shall become members of
sard Retirement S~-stem e~cept such in each such class as are eacluded b}~ la«' or
this agreement
a Local Fire Fighters (herein referred to as local safet~~ members),
PL~A~~' "~ ~'~'~T SiG~~! ''~nHIB~~ ON~.Y"
b Local Police Officers (herein referred to as IocaJ safet~- rnembers).
c Ocean Beach Lifeguards (included as local safet~~ members).
d Emplo~~ees other than local safet~~ members (herein referred to as local
miscellaneous members)
4 In addition to the ciasses of emplo~~ ees excluded from membersh~p b~~ said
Retirement Lai~,•. the follovving classes of emplo~ ees shall not become members of
said Ret~rement 5~~ stem.
1~0 ADDITIOI~AL EXCLUSIONS
5 The percentage of final compensation to be pro~~ided for each vear of credrted
prior and current sen.=~ce as a local miscellaneous member shall be determined in
accordance ~;-rth Section 21353 of said Retirement La«~ (~% at age 60 Full j
6 The percentage of final compensation to be provided far each ~-ear of credited
prior and current ser~'ice as an ocean beach lifeguard shall be determined in
accordance ~.~ith Section 21366 of said Retirement Lav~~ (One-half pa~~ at age 5~
Full)
7 The percentage af final compensation to be prol-ided for eaeh ~-ear of credited
prror and cuz-rent service as a local poli~e member and local fire member shall be
determined in accordance ~i~~th Section 21362 of sa~d Retirement La~r~- (2% at age
~0 Full)
8 Public ~genc,~ elected and eiects to be sub~ect to the follo~~~~ng optional
~rovisions
a SectFOn 20~21 ("Local Safet~~ liember" shall include ocean beach
lifeguards of a cit~~ as descrihed m Crovernment Code Section 20421)
b Section 21571 (Basic Le~=el of 19~9 Survrvor Benefits} f~r iocal
miscellaneous members and ocean beach lifeguards
c Section 21222 1(Special ~% Increase-1470) Legislation repealed said
Section effecti~~e Januan~ 1. 1480
d Sections ? 1b24 and 2162fi (Post-Retirement Sur~~ivor Allo~~~ance} tar local
police members and local fire members only
~«~~P ~u ;~~~ ~~~v fr~hHlB#T ~NlY~
e Section 24042 (One-Year Final Compensauonj for Ioca1 police members
and local fire members onlti-
f Section ~1024 (~lilrtat-~~ Service Gredrt as Public 5er~~ice), Statutes of
1976
g Section 20903 (T~~o Years Additional Ser~~ice Credit)
h Section 21~73 (Third Le~~el of 19~9 Sur~~i~~or Benefits) for local polzce
members and local fire members onl~~
9 Public Agenc~~ shall contribute to said Retirement S~ stem the contributions
determined b~~ actuarial ti-aluatians of priar and future ser~-ice iiabxlit~- «~ith respect
to local miscellaneous members and local safet~~ members of said Retirement
S~~ stem
] 0 Public Agenc~~ shall also contribute to said Ret~rement S~~ stem as follo~.~'s
a Per covered ~nember. $D per month on account of the liab~lrt~~ for the 19~9
Sunrvar Benefits prot~ided under Section ?1573 of said Retirement La«~
(Subject to annual change } In addition, all assets and liabilities of Public
Agency and rts emplopees shall be pooled in a single account, based on
term insurance rates. for sun~i~~ors of all local police fnembers and local
fire members
b A reasonahle amount, as fiaed b~~ the Board. pa~~able m one installment
«~ithin 60 davs of date of contract to cover the costs of admimsterzng said
S~~stem as rt affects the emplo~~ees of Public Agenc}-, not includm~ the
costs of special ~°aluations or of the periodic in~~estigation and <<aluations
requtred b<< la«
c A reasonable amaunt, as fixed b~~ the Board. pa}~able m one installment as
the occasions arise, to col~er the casts of special ti~aluatlons on account of
employees of Pubiic Agenc~~. and costs of the penodic in~°estigation and
~-aluations required b~~ la«
11 Contributions required of Public Agenc~~ and its emplo~~ees shall be sub~ect to
ad~ustment b~~ Board on account of amendments to the Public Emplo~;°ees'
Ret~rement La~~~, and on account of the e~penence under the Retirement S~-stem
as determined b}~ the periodic in~-estigation and valuatian required b~- said
Retirement Lati~
12 Contributions requxred of Public Agenc~~ and zts emplo~°ees shall be paid b~~
Public Agencti~ to the Retirement S~'stem ~.~-ithin fifteen dat~ s after the end of the
period to ~~-hich said contributions refer or as may be prescribed bti- Board
regulat~on If mare or less than the correct amo~t of contributions ~s paid for an~~
penad. proper ad~ustment shall be made in connect~on r.~~ith subsequent
remittances Ad~ustments on account of errors in contnbutions required of ant~
emplovee may- be made b~~ direct pa~ments bet~~~een the emplo~•ee and the Board
B This amendment shall be effecti~~e on the da~- of
BO?~RD OF ADMINISTRATIOI~
PLBLIC ENIPLOYEES' RETIRE~~E~TT S~STEVT
O~4
~~
B ~' r~~
KEI~~ETH VG~ ~~IARZIOI~, CHI~{~
~CTUARIAL & EMPLOYER~RVICES DIVISION
PUBLIC E~•1PLOYEES~ ~g35REMEI~T SYSTENI
~~
~
~~
~~
~~C
Q
CITY" COUNCIL
OF THE
CITY OF SA~1TA MO:VICA
.19
~
~~~_
BY ~`.
PRESIDING ~FFIGER ``~~-
.~
;~
:~ .
~
`~'itness Date `
Aitest ~ ~;
r ~
~~
~~~
Glerk
ah1ETvDhiEVT
PERS-COr-?02~ (Rev 8•~96)
ORDINANCE NUMBER
(City Counc~l Senes}
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY O~ SANTA MONICA AUTHORIZING AN AMEN~MENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF SANTA MONICA AND
THE BOARD OF ADMINISTRATION OF THE
CA~IFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
NOW, THEREF~RE, THE C1TY COUNCIL OF THE CITY OF SANTA MONfCA
DOES ORDAIN AS FOLLOWS
SECTION 1 That an amendmer~# to the c~r~tract between the G~ty Counc~l of the
City of Santa Monica and the Board af Administration, Cali#ornia Public Employees'
Retireme~t System is hereby autharized, a copy of said amendment being attached hereto,
mar~ced Exhib~t, and by such r~ference made a par# 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 an behalf of the C~ty
SECTiQN 3 Any pravESion of the Santa Manica Municipal Cocie or appendices
thereto mconsistent with the pro~isions of th~s Ordmance, to the extent of such
inconsistenc~es and no further, are hereby repealed or modified to that extent necessary
ta affect the pro~isjons of this Ordinance
SECTION 4 If any section, subsection, sen#ence, clause, or phrase of this
Ordinance is for any reason held to bE invalid or unconstitutional by a decision of any caurt
of any competent ~urisdiction, such decision shal~ not affect the vafid~ty af the remainmg
port~ons of th~s Ordinance The City CouncEl heret~y declares that it would f~a~e passed this
Ordinance, and each and every section, subsection, sentence, clause, or phrase not
declared ~nvalid or unconstitutional without regard to whether any portior~ of the Ordinance
would be s~bsequently declared ~rtvalad or unconst~tut~or~a!
SECTION 5 The Mayor sh~li sign and the City Clerk sh~ll attest to the passage of
this Ordir~ance This Ordinance shall ta[ce effect 30 days after the date of ~ts adaption,
and pnor to the expiration of 15 days from the passage thereof tf~e ordinance or a
summary shall be published at least once in The Argonaut, a newspaper of ger~eral
circulation, p~bhshed and circulated in Las Angefes County anc~ thenceforth and thereafter
the same shal! be m~uf! farce and effect
APPROVED AS TO FORM
k~-'~ ~11~' : ~
v V
Marsha Jones Moutrie
City Attorney