Ordinance - 2217ORDINANCE NO.2217
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF WEST COVINA AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the City of West Covina has made a determination regarding the issue of
providing PERS Benefit of 3% @ 55 for local fire members entering membership for the first
time in the fire classification; and
WHEREAS, the City elects to pursue an Urgency Ordinance, which would take effect
immediately following adoption, in order to realize the cost saving benefits of the Staffing for
Adequate Fire & Emergency Response (SAFER) grant and allow the Human Resources
Department to provide employment offers to new fire personnel under the PERS formula of 3%
@ 55; and
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employee's 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;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES
ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the contract between the City Council of the City of
West Covina and the Board of Administration, California Public Employees' Retirement System
is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit 1, and by
such reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the West Covina City Council is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said Agency.
SECTION 3. The City Clerk shall certify the adoption of this Ordinance and shall cause
the same to be posted or published in the manner as required by law.
SECTION 4. This Urgency Ordinance shall take effect and be in force the date
following its passage.
APPROVED AND ADOPTED on this 19t" day of July 2011
ATTEST:
City Clerk Laurie Carrico
Mayor S ve H fert
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing Ordinance was regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the 7th day of June 2011. That thereafter said Ordinance
was duly adopted and passed at a regular meeting of the City Council on the 19th day of July
2011, by the following vote of the Council:
AYES: Armbrust, Lane, Sanderson, Touhey, Herfert
NOES: None
ABSENT: None
ABSTAIN: None
rtv Clerk Laurie Carrico
APPROVED AS TO FORM:
4ty AAttor(n/eiy,&rnofd Alvarez-Glasman
Exhibit 1
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 West Covina
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,
1966, and witnessed May 26, 1966, and as amended effective November 1, 1968,
October 1, 1970, September 16, 1977, December 11, 1978, January 1, 1979, June 1,
1983, December 16, 1983, December 16, 1984, December 16, 1987, February 16,
1989, July 1, 1989, June 17, 1992, January 6, 1994, June 24, 1997, September 24,
1997, October 2, 1998, November 17, 1998, July 16, 1999, July 8, 2000, August 4,
2001, October 12, 2002, July 1, 2006 and January' 8, 2011 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 January 8, 2011, and hereby replaced by the following paragraphs
numbered 1 through 20 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 January 8, 2011, age 60 for
local miscellaneous members entering membership for the first time in the
miscellaneous classification after January 8, 2011, age 50 for local police
members and for those local fire members entering membership in the fire
classification on or prior to the effective date of this amendment to contract
and age 55 for local fire, members entering membership for the first time in
the fire classification after the effective date of this amendment to contract.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1966 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 b,ut not.limited to interest,, penalties and attorneys fees
that may arise as a result of any of the following ' "
(a) Public Ageyncy's election to provide retirement benefits,
provisions or formulas under'this Contract that are different than
the retirenient'benefits, provisions orformulas provided under
the Public Agency's prior. non-CaIPERS'' retirement program.
(b) Public Agency's election to amend this Contract to provide
retirementbenefits, 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 d,ifferent 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 90:1).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);
Q. 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.' PERSONS COMPENSATED ON AN HOURLY BASIS;AND
b. EMPLOYEES AND FORMER EMPLOYEES RETAINING RIGHTS,
OR RECEIVING BENEFITS ON ACCOUNT OF RETIREMENT
FOR SERVICE UNDER THE LOCAL SYSTEM AS OF JULY 1,
1966.
6. Benefits being received under the local system on July 1, 1966 by
persons retired for disability shall be continued by the Public Employees'
Retirement System at the rate provided in the local system in accordance
with Section 20481 of the said Retirement Law, said rate being constituted
as follows:
a. A monthly lifetime allowance in the amount of one-half of the retired
person's basis salary at the date of disability retirement reduced by
the worker's compensation payments, each month during the
retired person's entitlement to such payments.
b. A $500 death benefit payable upon death of the retired person
described above.
7. Public Agency, in accordance with Section 20685 of the Government
Code, shall provide that the normal rate of contribution for those
employees who were members of the Local Retirement System be based
on age at entry into said local system.
8. Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System and applied against the liability for prior service
incurred thereunder. That portion of the assets so transferred which
represent the accumulated contributions (plus interest thereof) required of
the employees under said local system has been credited to the individual
membership account of each such employee under the Public Employees'
Retirement System.
9. This contract shall be a continuation of the contract of the San Gabriel
Valley Fire Authority. A portion of the function of The San Gabriel Valley
Fire Authorityhas transferred.. to, the City of West Covina. The
been
accurnuiated contributions,` assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section
20508 of th`e Government Code.�'Siufdh merger occurred February 1, 1989.
10. 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 July 1, 2006 shall be, determined in
accordance with Section 21354 of said Retirement Law'(2% at age 55
Full).
11. 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 July 1, 2006 and'not entering- membership for'the
first time in the miscellaneous classification after January 8, 2011 shall be
determined" in`'accordance with Section 21354.4'of said Retirement Law
(2.5.�o at age 55Full).
12. 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"blassification after
January 8, 20.1.1 shallbe determined in accordance with Section 21353 of
said Retirement Law' '(2% at age 60 Full).
13. The, percentage of final compensation to be provided for each year of
credited prior and current service as a local police member and for those
local'fire members entering membership �in the fire classification on or
prior to the 'effective date of this amendment'to contract shall be
determined in 'accordance with Section 213622 of said Retirement Law
(3% at age 50 Full).
14. The percentage of final.` -compensation to be provided for each year of
credited cur'rent service as a locaPfire rierriberentering membership for
the first time in the fire classification after"the effective date of this
amendment to contract shall be determined'inaccordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
15. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21389 ` (Second` Opportunity to` Elect 1959 Survivor
Benefits): '` Legislation repealed'; said' Section `effective September
-27' 1979.
b. Section 21536
Death Benefit).
(Local System Service Credit Included in Basic
C. Section 20903 (Two- Years
miscellaneous members only.
. I
i
1
i
b
Additional Service Credit) for local
d. Sections 21624 and 21626 (Post -Retirement Survivor Allowance)
for local safety members only.
e. Section 20042 (One -Year Final Compensation).
f. Section 20965 (Credit for Unused Sick Leave).
g. Section 21622 ($600 Retired Death Benefit) for local fire members
only.
h. Section 21024 (Military Service Credit as Public Service).
Section 21574 (Fourth Level of 1959 Survivor Benefits).
j. Section 21548 (Pre -Retirement Option 2W Death Benefit) for local
safety members only.
k. Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 Full formula) is applicable to local miscellaneous members
entering membership for the first time in the miscellaneous
classification after January 8, 2011.
Section 21363.1 (3% @ 55 Full formula) is applicable to local fire
members entering membership for the first time in the fire
classification after the effective date of this amendment to contract.
16. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
September 16, 1977. 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.
17. 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.
18. 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 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.
19. 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.
20. 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 WEST COVINA
BY
DARRYL WATSON, CHIEF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT ER# 630
PERS-CON-702A
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk