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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. H H H H H H Ordinance No. 653 Pagel of 3 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 enteri 17,2( the fir classi POUCE safety 2. Publi( Syste provi( Empl( contr( amen -Zj-' - 3. Publi( Califc truste and tl dema costs that n I herein :after E indemnify, defend and hold h provisions or formulas under t than the retirement benefits, pt under the Public Agency's p program. (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