SR-12-A (62)
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PE:KLB:kb/cc.bancroft.pms
Council Meeting: October 15, 1991
. . DC} 1 5 '991
Santa Mon~ca, Cal1forn~a
TO:
Mayor and council
FROM:
City Staff
SUBJECT:
Recommendation to Adopt Resolution of Intention to
Amend Contract Between the PUblic Employees'
Retirement System and the City of Santa Monica
INTRODUCTION
This report requests that Council adopt the attached resolution
stating its intent to approve an amendment to the contract
between the publ ic Employees I Retirement system (PERS), and the
city of Santa Monica to provide section 20930.3 (Military Service
Credit as Public Service) for local miscellaneous members and
local safety members. The attached resolution complies with the
procedure required by PERS.
This report also requests that
Council direct the ci ty Attorney to draft an ordinance which
would amend said contract as indicated, with a pUblic hearing to
be held at the Council meeting scheduled for November 12, 1991.
DISCUSSION
The City of Santa Monica contracts with PERS to provide a
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retirement plan for its permanent safety (police and fire) and
miscellaneous (non-safety) employees. As a contracting agency,
the City may amend its contract to provide various optional
benefits' offered by PERS.
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Section 20930.3 (Military service Credit as Public Service) is an
optional benefit that is available to contracting agencies.
Section 20930.3 permits an employee to purchase up to four years
of service credit for any continuous active military or merchant
marine service prior to employment. The employee who qualifies
for this optional benefit must contribute to PERS an amount equal
to both the employee I s contribution and the employer IS
contribution for that period of military service. No additional
contribution is required by the contracting agency.
As a part of the most recently negotiated Memorandums of
Understanding, the city has agreed to amend its contract with
PERS to provide Section 20930.3 (Military service Credit as
Public Service) to its public safety employees (police and fire).
Since this optional benefit can be added at no cost to the City,
city staff is recommending that the contract with PERS for
miscellaneous employees (all non-safety employees) also be
amended to include Section 20930.3.
BUDGET/FISCAL IMPACT
There will be no budget/fiscal impact from this recommended
change to the city's PERS contract.
RECOMMENDATION
It is recommended that the City Council:
1) adopt the attached resolution indicating its intent to approve
an amendment to the contract between the Public Employees'
Retirement System and the City of santa Monica to provide section
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20930.3 (Military Service Credit as Public Service) for local
miscellaneous members and local safety members; and
2) direct the City Attorney to draft an ordinance to amend said
contracts, as indicated, with a public hearing to be held at the
Council meeting scheduled for November 12, 1991.
Prepared By: Karen L. Bancroft
(KB.l!eel!)
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RESOLUTION NO.
8308(CCS)
(city council Series)
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY OF SANTA MONICA
WHEREAS, the Publ ic Employees I 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 20930.3 (Military Service Credit as
Public Service) for local miscellaneous members and
local safety members.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
Section 1. Notice is hereby given of the intent of the
City Council of the City of Santa Monica to approve an amendment
to the contract between the said governing body 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:
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ROBERT M. MYERS
city Attorney
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A1"IENDME~1 TO CONTRACT
BETWEEN THE
BOARD OF ADM Il\'ISTRA TION
OF THE
PUBLIC E~IPLOYEES' RETIREMEl\'T SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF SANTA MONICA
The Board of AdmInistration, Public Employees' Retirement System, hereinafter referred to as Board,
and the governing body of above pubhc agency, heremafter referred to as Pubhc Agency, havmg entered
mto a contract effectIve July 1. 1944, and witnessed Apnl 5. 1944, and as amended effecuve March 1,
1950, September I, 1951, June 1, 1954, November 1, 1960. February I, 1962, September 12, 1965,
November I, 1969, November 25, 1973, January 20, 1974, March 3, 1974, June 28. 1981 and May 13,
1984, which prOVides for parnclpatlonofPubhc Agency m said System. Board and Public Agency hereby
agree as follows
A Paragraphs 1 through 11 are hereby stncken from said contract as executed effective May 13,
1984, and hereby replaced by the folIowmg paragraphs numbered 1 through 12 mcluslve
1. All words and terms used herem which are detlned in the Pubhc Employees' RetIfement
Law shall have the meanmg as defined therem unless otherWise speCifically proVided.
"Normal retirement age" shall mean age 60 for local miscellaneous members. age 50 for
local fire and local pohce members, and age 55 for ocean beach hfeguards.
2 Pubhc Agency shall participate In the Pubhc Employees' Retirement System from and
after July 1, 1944 malung 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. 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
Retirement System except such 10 each such class as are excluded by law or thiS
agreement
a. Local Fire FIghters (herem referred to as local safety members),
b Local Police Officers (herem referred to as local safety members),
C. Ocean Beach Lifeguards (mcIuded as local safety members),
d. Employees other than local safety members (herem referred to as local
miscellaneous members)
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4. In addition to the classes of employees excluded from membershIp by
saId Retirement 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 10 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 determmed 10 accordance With
Section 21252.1 of said Retirement Law (One.half pay at age 55 Full)
7 The percentage of final compensanon to be prOVided for each year of credIted pnor and
current service as a local fire member and local police member shall be determmed III
accordance With Section 2125201 of said Retirement Law (2% at age 50 Full)
8. Public Agency elected to be subject to the following optIOnal proVISIons'
a. Section 20019 3 ("Local Safety Member" shall include ocean beach lifeguards of
a city as deSCribed In Government Code Secnon 20019 3)
b. Sections 21380-21387 (1959 SurvIvor Benefits) excludmg Section 21382.2
(Increased 1959 SurvlVor Benetits) and Sectlon 21382.4 (l1md Level of 1959
SurvIvor Benefits)
c. Section 21222 1 (Special 5% Increase - 1970) LegIslation repealed saId Section
effectIVe January 1. 1980
d SectIOns 21263 and 21263 1 (Post-RetIrement SurvIvor Allowance) for local fire
members and local police members only
e. Secnon200242 (One-Year Final Compensation) for local fire members and local
pollee members only
f Section 20930 3 (MIlitary Service Credn as PublIc ServIce),
Statutes of 1976
9 Pubhc Agency shall contnbute to saId RetIrement System the contnbutlOns determmed
by actuanal valuatIons of pnor and future service habllny WIth respect to local
mIscellaneous members and local safety members of said RetIrement System.
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10. PublIc Agency shall also contrIbute to saId Retirement System as follows:
a A reasonable amount, as fixed by the Board, payable m one mstallment wlthm
60 days of date of contract to cover the costs of admInlstermg saId System as It
affects the employees of PublIc Agency, not includmg the costs of special
valuations or of the perIOdIC InvestigatIOn and valuations reqUIred by law
b. 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 perIOdIC Investigation and valuations reqUIred
by law
11. Contnbutlons 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 on
account of the experIence under the Reurement System as determmed by the perIodic
investIgation and valuation reqUIred by said Retirement Law
B
ContrIbutions reqUIred of Public Agency and Its employees shall be paid by PublIc
Agency to the Retirement System wIthm fifteen days after the end of the period to which
said contrIbutIOns refer or as may be preSCrIbed by Board regulatIOn If more or less
than the correct amount of contnbutions IS paId for any peflod, proper adjustment shall
be made in connection With subsequent remmances Adjustments on account of errors
in contnbuuons requIred ~any employee may be made by direct payments between the
employee and the Boar~
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TIus amendment shall ~ effectlve on the
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BOARD OF ADMINISTRA TI~
PUBLIC EMPLOYEES' RET~MENT SYSTEM
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CHIEF. COr-.."RA~SERVICES DIVISION
PUBLIC EMPL?"S' RETIREMENT SYSTEM
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CITY COUNCIL
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CITY OF SANTA MONICA ~
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Attest 4
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BY
Clerk
PERS-CON-702 (AMENDMENT)
(Rev 3/91)
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Adopted and approved this 15th day of October, 1991.
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I' Mayor
I hereby certify that the foregoing Resolution No. 8308(CCS)
was duly adopted by the city council of the city of Santa Monica
at a meeting thereof held on October 15th, 1991 by the following
Council vote:
Ayes: Councilmembers: Genser, Holbrook, Olsen, Vazquez,
Zane, Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Katz
ATTEST:
(J1Ld~
~ ?ty Clerk