HomeMy WebLinkAboutOrdinance 653 Amending PERS Contract to Implement Cost SharingORDINANCE NO. 653
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE
CITY OF MORRO BAY AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
IMPLEMENTING SECTION 20516 (EMPLOYEES SHARING ADDITIONAL COST) FOR
LOCAL FIRE MEMBERS IN THE MORRO BAY FIREFIGHTERS ASSOCIATION,
IAFF LOCAL 3725
THE CITY COUNCIL
City of Morro Bay, California
THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DOES HEREBY
FIND AND ORDAIN AS FOLLOWS:
SECTION 1. CONTRACT AMENDMENT. That an amendment to the contract between
the City Council of the City of Morro Bay 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. EXECUTION. The Mayor of the City Council is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said Agency, with the
effective date of the amendment being November 26, 2022.
SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full force and take effect 30
days after the date of its adoption, and prior to the expiration of 10 days from the passage thereof
shall be published at least once in the New Times SLO, a newspaper of general circulation,
published and circulated in San Luis Obispo County and thenceforth and thereafter the same shall
be in full force and effect.
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Ordinance No. 653
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SECTION 4. CERTIFICATION. The City Clerk shall certify to the adoption of this
ordinance, and shall cause the same to be posted and codified in the manner required by law.
INTRODUCED at a regular meeting of the City Council held on the 27th day of September
2022, by motion of Council Member Addis and seconded by Council Member Heller.
PASSED AND ADOPTED on the 25th day of October 2022, by the following vote:
AYES: Headding, Addis, Barton, Ford, Heller
NOES: None
ABSENT: None
JOHN �EAbDlkQz,-M-Zyor
ATTEST:
Crv�f �
D NA SWANSON, City Clerk
APPROVED AS TO FORM:
C IS F. NEUMEYER, City Attorney
Ordinance No. 653
Page 2 of 3
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO
CITY OF MORRO BAY
I, Dana Swanson, CITY CLERK OF THE CITY OF MORRO BAY, DO HEREBY
CERTIFY that the foregoing Ordinance Number 653 was duly adopted by the City Council of the
City of Morro Bay at a regular meeting of said Council on the 251h day of October 2022 and that it
was so adopted by the following vote:
AYES: Headding, Addis, Barton, Ford, Heller
NOES: None
ABSENT: None
ity Clerk, Dana Swanson
Ordinance No. 653
Page 3 of 3
Ca1PERS
California
Public Employees' Retirement System
AMYE"'NDME.NT TO CONTRACT
Between the
Board of Administration
California ]Public ]Employees' Retirement System
and. the
City Council
City of Morro Bay
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, 1965, and witnessed June 1, 1965, and as amended effective August 15, 1981,
November 19,1983, January 7 1989, June 24, 1989, June 22, 1991, June 10, 1994,
June 9, 1998, October 17 1998, April 13, 2000, June 22, 2002, September 13, 2002,
June 21, 2003, September 27, 2003, July 1,2006 June 2, 2007, May 31,' 2008, March
19 2011, September 17, 2011, December 10, 2011, June 15, 2019, and October 19,
2019, which provides for iparticipation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs 1 through 19 are hereby stricken from said contract as executed
effective October 19, 2019, and hereby replaced by the following paragraphs
numbered 1 through 19 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 classic local miscellaneous members entering
membership in the miscellaneous classification on or prior December 10,
2011, age 60 for classic local miscellaneous members entering
membership in the miscellaneous classification after December 10,
2011, age 62 for new local miscellaneous members, age 50 for classic
local fire members entering membership in the fire classification on or
prior to March 19, 2011, and for those classic local police members
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(b) Any' dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or
litigation) between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions
or formulas that are different than such employees' existing
retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CalPERS 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.
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. 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:
a. ELECTED OFFICIALS;
b. APPOINTIVE COMMISSIONS; AND
C. PERSONS COMPENSATED ON AN HOURLY BASIS.
6. This contract shall be a continuation of the benefits of the contract of the
Morro Bay Fire District, hereinafter referred to as "Former Agency",
pursuant to Section 20508 of the Government Code, Former Agency
having ceased to exist and succeeded by Public Agency on July 1, 1965.
Public Agency, by this contract, assumes the accumulated contributions
and assets derived therefrom and 'liabilityforprior and current service
under Former Agency's contract with respect to the Former Agency's
employees. Legislation repealed Section 20508, Statutes of 1949,
effective January 1, 1988.
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous
member in employment before and not on or after September 27, 2003,
shall be determined in accordance with Section 21354 of said Retirement
Law (2% at age 55 Full).
8.The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous
member in employment on or after September 27, 2003, and not entering
membership for the first time in the miscellaneous classification after
December 10, 2011, shall be determined in accordance' with Section
21354.5 of said Retirement Law (2.7% at age 55 Full).
9. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member
entering membership for the first time in the miscellaneous classification
after December 10, 2011, shall be determined in accordance with
Section 21353 of said Retirement Law (2% at age 60 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said
Retirement Law (2% at age 62 Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local fire member entering
membership in the fire classification on or prior to March 19, 2011, and
for those classic local police members entering membership in the police
classification on or prior to September 17, 2011, shall be determined in
accordance with Section 21362.2 of said Retirement Law;(3% at age 50
Full),
12. The percentage of final compensation to be provided for each year of
credited current service as a classic local fire member entering
membership for the first time in the fire' classification after March 19,
2011, and for those classic local police members entering membership
for the first time in the police classification after September 17, 2011,
shall be determined in accordance with Section 21363.1 of said
Retirement Law (3% at age 55 Full).
13. The percentage of final compensation to be provided for each year of
credited prior, and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement
Law (2.7% at age 57 Full).
14. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20965 (Credit for Unused Sick Leave).
b. Section 20042 (One -Year Final Compensation) for those classic
local fire members entering membership on or prior to March 19,
2011, those classic local police membersentering membership on
or prior to September 17, 2011, and those classic local
miscellaneous members entering membership on or prior to
December 10, 2011.
C. Section 21024 (Military Service Credit as Public Service) for local
miscellaneous members and local 'police members only.
d. Section 21574 (Fourth Level of 1959 Survivor Benefits).
e. Section 20423 ("Local Safety Member shall include Harbor or
Port Police' Officers as described in Government Code Section
20423).
f. Section 21027 (Military Service Credit for Retired Persons) for
local police members only.
g. Section 20475 (Different Level of Benefits): Section 21363.1 (3%
@ 55 Full formula) and 'Section 20037 (Three -Year Final
Compensation) are applicable to classic local fire members
entering membership for the first time with this agency in the fire
classification after March 19,; 2011
Section 21363.1 (3%'@ 55 Full' formula) and Section' 20037
(Three -Year Final Compensation)' are applicable to classic local
police members entering membership for the first time with this
agency in the police classification after September 17, 2011.
Section 21353 (2% @ 60 Furl formula) and Section 20037 (Three -
Year Final Compensation) are applicable to classic local
miscellaneous members entering membership for the first time
with this agency in the miscellaneous classification after
December 10, 2011.
h. Section 20516 (Employees Sharing Additional' Cost):
From and after June 15, 2019, and until October 10,; 2019 1 % for
local police members in the 'Morro Bay Peace Officers'
Association.
From; and after October 10, 2019, 2% for local police members in
the Morro Bay Peace Officers' Association.
From and after the effective date of this amendment to contract,
2% for local fire members in the Morro Bay Firefighters
Association, IAFF Local 3725.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall
not exceed the Employer Normal Cost Rate, as that rate is defined
in the CalPERS Actuarial Valuation for the relevant fiscal year. If
the Cost Sharing Percentage will exceed the relevant Employer
Normal Cost Rate, the Cost Sharing Percentage shall
automatically be reduced to an amount equal to, and not to
exceed, the Employer Normal Cost Rate for the relevant fiscal
year.
15. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
August 15, 1981. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
16. 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.
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 miscellaneous members and local safety
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.
18. 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.
19. 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
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
MELODY BENAVIDES, CHIEF
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
2Vkday of J'�'py',P�yy1Lx,✓ 2O2-7—
CITY COUNCIL
CITY OF MORRO BAY
BY
PRESI N O
b&41 t (,r 2 t,,. Zo
Witness Date
Attest:
saw
Jerk
AMENDMENT CaIPERS ID #7048295140
PERS-CON-702A