HomeMy WebLinkAboutReso 32-23 of Intent to Amend CalPERS ContractRESOLUTION NO. 32-23
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
DECLARING THE CITY'S INTENTION TO APPROVE AN AMENDMENT
TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the Public Employees' 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 20516 (Employees Sharing Additional Cost) of 1 % for classic
local miscellaneous members in the Morro Bay Service Employees International Union -
Local 620, Unrepresented Management, Unrepresented Department Head, and
Unrepresented Confidential Employees; 1 % for classic local police members in the Morro
Bay Service Employees International Union -Local 620; 1 % for local safety members in the
Unrepresented Department Head, and Unrepresented Management; and
an additional 1 % for classic local police members in the Morro Bay Peace Officers
Association, and classic local fire members in the Morro Bay Firefighters Association IAFF
Local 3725; and
a reduction of 1 % for new local police members in the Morro Bay Peace Officers
Association.
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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay,
California does hereby give notice of intention to approve an amendment to the contract
between said public agency 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.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 23b day of May 2023 by the following vote:
AYES:
Wixom, Barton, Edwards, Ford, Landrum
NOES:
None
ABSENT:
None
ABSTAIN:
None
RECUSED: None
CARLA WIXOM, Mayor
ATTEST-
DANA SWANSON, City Clerk
A,o,
Ca1PERS
California
Public Employees' Retirement System
EXHIBIT
AM Eli DM ENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Morro Bay
4010-
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, September27, 2003, July 1, 2006, June 2, 2007, May 31, 2008, March
19, 2011, September 17, 2011, December 10, 2011, June 15, 2019, October 19, 2019,
and November 26, 2022, which provides for participation 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 November 26, 2022, and hereby replaced by the following paragraphs
numbered 1 through 19 inclusive:
1. 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 entering membership in the police classification on or prior
to September 17, 2011, age 55 for classic local fire members entering
membership for the first time in the fire classification after March 19, 20111
and for those classic local police members entering membership for the first
time in police classification after September 17, 2011, and age 57 for new
local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System
from and after July 1, 1965, 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.
I Public Agency agrees to indemnify, defend and hold harmless the California
Public Employees' Retirement System (CalPERS) and its trustees, agents
and employees, the CalPERS 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 attorney 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-CalPERS retirement 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 Califomia
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 liability for prior 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 members entering 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 Full 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, and until the effective date of this
amendment to contract 2% for local police members in the Morro Bay
Peace Officers' Association.
From and after November 26, 2022, and until the effective date of
this amendment to contract, 2% for local fire members in the Morro
Bay Firefighters Association, IAFF Local 3725.
From and after the effective date of this amendment to contract, 3%
for classic local police members in the Morro Bay Peace Officers'
Association.
From and after the effective date of this amendment to contract, 3%
for classic local fire members in the Morro Bay Firefighters
Association, IAFF Local 3725.
From and after the effective date of this amendment to contract, 1 %
for new local police members in the Morro Bay Peace Officers'
Association.
From and after the effective date of this amendment to contract, 1 %
for classic local safety members in the Unrepresented Management
group.
From and after the effective date of this amendment to contract, 1 %
for classic local safety members in the Unrepresented Department
Head group.
From and after the effective date of this amendment to contract, 1 %
for classic local police members in the Morro Bay Service Employees
International Union, Local 620.
From and after the effective date of this amendment to contract, 1 %
for classic local miscellaneous members in the Morro Bay Service
Employees International Union, Local 620.
From and after the effective date of this amendment to contract, 1 %
-for classic local miscellaneous members in the Unrepresented
Management group.
From and after the effective date of this amendment to contract, 1 %
for classic local miscellaneous members in the Unrepresented
Department Head group.
From and after the effective date of this amendment to contract, 1 %
for classic local miscellaneous members in the Unrepresented
Confidential group.
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 Nominal 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.
17. Public Agency shall also contribute to said Retirement System as follows:
a. 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.
b. 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 tive on the
BOARD OF ADMINISTRA
PUBLIC EMPLOYEES'OEEMENT SYSTEM
BY \
MELODY BE ES, CHIEF
PENSION RACTS AND PREFUNDING
PROGR DIVISION
PUB PLOYEES' RETIREMENT SYSTEM
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AMENDMENT CWPERS ID 17048295140
PERS-CON-702A
day of ,
CITY COUNCIL
CITY OF MORRO BAY
BY
PRESIDING OFFI
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