Ord 730ORDINANCE NO. 730
AN ORDINANCE OF THE CITY OF POWAY CALIFORNIA,
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the City of Poway has current agreements with the California
Teamsters Local 911 and the Poway Firefighters Association; and
WHEREAS, these agreements provide for second tier pension plans for all safety
and non - safety employees hired on or after January 1, 2012; and
WHEREAS, these second tier pension plans would also include all management
and confidential employees hired on or after January 1, 2012; and
WHEREAS, the California Public Employees' Retirement Board, in accordance
with California Government Code Section 20475, provides for a contract agency to
provide different levels of benefits for new employees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY' OF POWAY DOES
ORDAIN AS FOLLOWS:
Section 1.
That an amendment to the contract between the City Council of the City of Poway 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 Poway is hereby authorized, empowered, and directed to
execute said amendment for and on behalf of said Agency.
Section 3.
This Ordinance shall take effect thirty (30) days after the date of this passage, and
before the expiration of fifteen (15) days from the passage thereof shall be published at
least once with names and members voting for and against the same in the Poway
News Chieftain, a newspaper of general circulation, published and circulated in the City
of Poway and thenceforth and thereafter the same shall be in full force and effect.
Introduced and first read at a regular meeting of the City Council of the City of
Poway this 6th day of September 2011 and thereafter PASSED AND ADOPTED at a
regular meeting of said City Council held on the 4th day of October 2011.
� r
Don Higginson, Mayor
Li_udd'A. Jroyan, MMC, City Clerk
Ordinance No. 730
Page 2
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO)
I, Linda A. Troyan, City Clerk of the City of Poway, do hereby certify that the
foregoing Ordinance No. 730, was duly adopted by the City Council at a meeting of said
City Council held on the 4th day of October, 2011, and that it was so adopted by the
following vote:
AYES: BOYACK, GROSCH, MULLIN, CUNNINGHAM, HIGGINSON
NOES:
ABSENT:
DISQUALIFIED:
inda A. Troyan, MMC
City Clerk
City of Poway
�i,,
CaIPERS
California
Public Employees' Retirement System
--
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Poway
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
February 1, 1981, and witnessed January 28, 1981, and as amended effective
December 6, 1982, December 19. 1986, April 3, 1989, June 25. 1990, January 7, 1991,
July 7, 1993, September 8, 1993, September 20, 2000, December 6. 2000. June 25,
2001, December 23, 2002 and November 17, 2004 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 November 17, 2004, and hereby replaced by the following paragraphs
numbered 1 through 17 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 local miscellaneous members entering membership in
the miscellaneous classification on or prior to the effective date of this
amendment to contract and age 60 for local miscellaneous members
entering membership for the first time in the miscellaneous classification
after the effective date of this amendment to contract; age 50 for local
safety members entering membership in the safety classification on or
prior to the effective date of this amendment to contract and age 55 for
local safety members entering membership for the first time in the safety
classification after the effective date of this amendment to contract.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after February 1, 1981 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
(fj 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. 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. POLICE OFFICERS.
6. This contract shall be a continuation of the benefits of the contract of the
Poway Municipal Water District, hereinafter referred to as "Former
Agency ", pursuant to Section 20567.2 of the Government Code, Former
Agency having ceased to exist and having been required by law to be
succeeded by Public Agency on February 1, 1981 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 said Section effective January 1, 1988.
7 This contract shall be a continuation of the benefits of the contract of the
Pomerado County Water District, hereinafter referred to as "Former
Agency ", pursuant to Section 20567.2 of the Government Code, Former
Agency having ceased to exist and having been required by law to be
succeeded by Public Agency on February 1, 1981. 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 said Section effective January 1, 1988.
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member
entering membership in the miscellaneous classification on or prior to 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 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 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 local safety member entering
membership in the safety classification on or prior to the effective date of
this amendment to contract 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 current service as a local safety member entering membership for
the first time in the safety classification after the effective date of this
amendment to contract 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 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
b. Section 20042 (One -Year Final Compensation) for those local
miscellaneous members entering membership on or prior to the
effective date of this amendment to contract
C. Section 21574.5 (Indexed Level of 1959 Survivor Benefits).
d. Section 21548 (Pre- Retirement Option 2W Death Benefit).
e. Section 21024 (Military Service Credit as Public Service).
f. Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 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.
Section 21363.1 (3% @ 55 Full formula) is applicable to local
safety members entering membership for the first time in the safety
classification after the effective date of this amendment to contract.
13. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834.
14. 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.
15. 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 21574.5 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
16. 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.
17. 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 9th day of January . 2012
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF POWAY
BY i-- " BY
DARRYL WATSON, CHIEF PRESIDING OF IC
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
1 1 1/ _
Witness at
Attest:
AMENDMENT ER# 1279
PERS- CON -702A