O2397City Council Meeting: 4/24/2012 Santa Monica, California
ORDINANCE NUMBER 2397 (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
WHEREAS, the City of Santa Monica contracts with the California Public
Employees' Retirement System (CaIPERS) to provide retirement plans for eligible
employees; and
WHEREAS, as a contracting agency, the City may amend its contract(s) to
provide various optional benefits offered by CaIPERS.
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, and by such reference made a part hereof as though herein set
out in full.
SECTION 2. The Mayor of the City of Santa Monica 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 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inconsistencies and no further, are hereby repealed or modified to that extent necessary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 take effect 30
days after the date of its adoption.
APPROVED AS TO FORM:
MARSHA,JON MOUTRI
City A�tq+`ney
2
Ca1PERS
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Santa Monica
The Board of Administration, California . Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective July 1,
1944, and witnessed April 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, April 25, 1993, January 12, 1996, January
15, 1999, November 13, 1999, November 19, 2000, April 28, 2001, September 14,
2001, December 16, 2001, January 12, 2003, September 21, 2003, May 16, 2004,
November 14, 2004 and May 27, 2007 which provides for participation of Public Agency
in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective May 27, 2007, and hereby replaced by the following paragraphs
numbered 1 through 16 inclusive:
All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age' shall
mean age 55 for local miscellaneous members, age 55 for local fire
members and ocean beach lifeguards, and age 50 for local police
members.
Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1944 making its employees as hereinafter
provided, members of said System subject to all provisions of the Public
Employees' Retirement Law except such as apply only on election of a
contracting agency and are not provided for herein 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. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, the CaIPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non - CaIPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CaIPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for under
the California Public Employees' Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and /or Public Agency's election to reject this
Contract with the CaIPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CaIPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
4. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
C. Ocean Beach Lifeguards (included as local safety members);
d. Employees other than local safety members (herein referred to as
'local miscellaneous members).
5. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after May 27, 2007 shall be determined
in accordance with Section 21354 of said Retirement Law (2% at age 55
Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after May 27, 2007 and not entering membership for
the first time in the miscellaneous classification after the effective date of
this amendment to contract shall be determined in accordance with
Section 21354.5 of said Retirement Law (2.7% at age 55 Full).
8. The percentage of final compensation to be provided for each year of
credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract shall be determined in
accordance with Section 21354 of said Retirement Law (2% at age 55
Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as an ocean beach lifeguard shall be
determined in accordance with Section 21366 of said Retirement Law
(One -half pay at age 55 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a local fire member shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
12. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20421 ( "Local Safety Member" shall include ocean beach
lifeguards of a city as described in Government Code Section
20421).
b. Section 21571 (Basic Level of 1959 Survivor Benefits) for ocean
beach lifeguards.
C. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
d. Sections 21624 and 21626 (Post- Retirement Survivor Allowance)
for local police members and local fire members only.
e. Section 20042 (One -Year Final Compensation) for local police
members, local fire members and for those local miscellaneous
members entering membership on or prior to the effective date of
this amendment to contract.
f. Section 21024 (Military Service Credit as Public Service).
g. Section 20903 (Two Years Additional Service Credit).
h. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
police members, local fire members and local miscellaneous
members only.
Section 21548 (Pre- Retirement Option 2W Death Benefit) for local
fire members and local miscellaneous members only.
j. Section 20434 ( "Local Fire Fighter" shall include any officer or
employee of a fire department employed to perform firefighting, fire
prevention, fire training, hazardous materials, emergency medical
services, or fire or arson investigation services as described in
Government Code Section 20434).
k. Section 20475 (Different Level of Benefits). Section 21354 (2% @
55 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local miscellaneous members
entering membership for the first time in the miscellaneous
classification after the effective date of this amendment to contract.
13. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
14. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local police members, local fire members and local miscellaneous
members.
b. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of,date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required by law.
C. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, 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.
15. Contributions 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
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
16. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within 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
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
B. This amendment shall be effective on the day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SANTA MONICA
BY BY
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS ID #6936770431
PERS- CON -702A
Approved and adopted this 24th day of April, 2012.
Richard Bloom, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Ordinance No. 2397 (CCS) had its introduction on March 27, 2012,
and was adopted at the Santa Monica City Council meeting held on April 24,
2012, by the following vote:
Ayes: Council members: Holbrook, McKeown, O'Connor, O'Day, Shriver
Mayor Pro Tern Davis, Mayor Bloom
Noes: Council members: None
Absent: Council members: None
A summary of Ordinance No. 2397 (CCS) was duly published pursuant to
California Government Code Section 40806.
ATTEST:
Maria M. Stewart, Cit Clerk