HomeMy WebLinkAboutCity Council - 2002-115 OF INTENT
RESOLUTIONINO. 2002-115
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF HUNTINGTON BEACH
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
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
The following is a statement of the proposed change:
To provide Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire
members_
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above
agency 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 Huntington Beach at a
regular meeting thereof held on the 18 day of November , 2002.
ATTE
CONNIE BROCKWI
� City Clem � e Mayor
REVIEWED AND APPROVED- APPROVED AS TO FORM:
pp a
City Administrator City Attorney (0
INITIATE PPR
Director Administrative ervices
G:I1,ES0LUW20021amend PERS.doc 1
Ca1PERS
EXHIBIT
California
Public Employees' Retirement System
AMEND EIS T NCO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Huntington Beach
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 October 1, 1945, and
witnessed October 27, 1945, and as amended effective January 1, 1950, March 1, 1952,
November 1, 1957, March 1, 1958, October 1, 1961, January 1, 1971, January 12, 1974,
April 18, 1975, February 21, 1976, August 7, 1976, September 17, 1977,. September 30,
1978, June 6, 1981, March 18, 1982, February 24, 1983, December 4, 1986, March 18,
1988, November 4, 1999, April 20, 2000, .tune 30, 2001 and October 5, 2001 which
provides for participation of Public Agency in said. System, Board and Public Agency
hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective October 5, 2001, -and hereby replaced by the following paragraphs
numbered 1 through 12 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 and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System'
from and after October 1, 1945 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. ,
-" "E DO NOT SIGN "EXHIBIT M,(
3. 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);
1. Local Police Officers shall include individuals defined by Section
20020 of the Government code prior to its amendment at the 1975-
76 Regular Legislative Session, effective January 1, 1976,
employed by Public Agency prior to such amendment.
t.
C. Ocean Beach Lifeguards (included as local safety members);
d. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. 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. CROSSING GUARDS, EMPLOYEES IN STUDENT DESIGNATED
POSITIONS AND SENIOR :OUTREACH .ASSISTANTS HIRED ON
AND AFTER MARCH 18, 1982; AND
b. RESERVE FIRE FIGHTERS HIRED ON AND AFTER DECEMBER 4,
1986.
5. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law (3°l0.
at age 50 Full).
7. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety
members.
b. Section 20421 ("Local Safety Member" shall include ocean beach
lifeguards of a city as described in Government Code Section 20421}.
I-LEASE DO NOT SIGN "EX1 I1BIT OKY" zo ai — i I s+
C. Sections 21624, 21626 and -21628 (Post-Retirement Survivor
Allowance) for local fire members only.
d. Section 20020.1 ("Local Police Officer' shall include employees of a
police department who. were employed to perform identification or
communication duties on August 4, 1972 and who elected to be local
safety members within six months of April 18, 1975). Legislation
repealed said Section effective January 1, 1985.
e. Section 21024 (Military Service Credit as Public Service), Statutes of
1974.
f. Section 20042 (One-Year Final Compensation).
f
g. Section 20903 (Two Years Additional Service Credit).
h. Section 21037 (Cancellation of Payment for Optional Service Credit
Upon Retirement for Industrial Disability) for local safety members
only.
i. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
8. Public Agency, in accordance with Government Code Section 20790, ceased .
to be an "employer' for purposes of Section 20834 effective on April 18,
1975. 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.
9. 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.
10. 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 21573 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.
b. 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
safety members.
C. 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.
d. 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.
11. Contributions required of Public Agency and its employees shall be subject to
adjustment by Board on account of amendments to the Public Employees' s,
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.
12. 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 e#ective on the day of
BOARD OF A[?MINISTRATIQ CITY COUNCIL
PUBLIC EMPLOYEES' REff3€MENT SYSTEM CITY OF HUNTINGTON *H
BY BY
KENNETH W. MA , CHIEF PRESIDING OFFI
ACTUARIAL & E �OYER SERVICES DIVISION
PUBLIC EMPL ES' RETIREMENT SYSTEM
Witness
Attest:
Clerk
AMENDMENT ER#0097
PERS-CON-702A(Rev.M02)
i
79995�rviur Bei�fit
Pl�ag"am ,
The 1959 Survivor Benefit provides a
monthly allowance to eligible survivors of
members who were covered for this benefit
program and died before retirement.This
benefit coverage is available by contract
amendment for those members who are not
covered by federal Social Security with their
employer. Covered members are required to
pay a$2 monthly fee that is deducted from
their salary specifically to fund the 1959
Survivor Benefit Program.
The 1959 Survivor Benefit allowance
is payable in addition to any other -
pre-retirement death benefit paid by-
Ca1PERS,with the exception of the'Special
Death Benefit. If the 1959 Survivor Benefit
is greater than the Special Death Benefit,
then the difference is paid as the 1959
Survivor Benefit. Please refer to your
CaIPERS Member Benefit Booklet for
information on the Special Death Benefit i
and other pre-retirement death benefits.
Upon a member's pre-
retirement death, the
respective employer
and surviving spouse or
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Calypso butbasa
This shade-loving flower,also called the fairy
slipper,grows among the redwoods on mossy logs,
or on the forest door.Growing only up to six inches
In height, this small!lower is one of the earliest to
bloom, beginning in February.Its short stalk is
topped by a delicate rose-pink orchid.
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dependent children are encouraged to ,
immediately contact CaIPERS.for assistance.
F%Abrt iy BerieFtt W ds
Currently,there are six different benefit
levels.The applicable Ievel depends on the
contract the employer has with Ca1PERS.
County school members and State members
are covered at Level 5.
Local public agency members(city,county,
or special district) may be covered by any
of the first four levels or by the "indexed"
level, depending on their employer's contract
with CalPERS.
Please refer to the following chart to
determine the amounts payable under
each level depending on the number of
eligible survivors:
Benefit Payments
Three
Senerit One Two or More
Level Survivor Survivors Survivors
Levell* $180 $360 $430
Level 2* $225 $450 $538
Level $350 $700 $840
Level $950 $1,900 $2.280
Level s $750 $1.500 $1,800
Indexed
Level $500 $1,000 $1,500**
* These levels are closed for new agency contract
amendments after January 1, 1994.
** These benefit amounts wig increase 2 percent
each January, begfnning in January 2001.
2 •
•
Zod;), - lid
Digjble Swvivam
Spouse: A surviving spouse is a husband or
wife who was legally married to the member
either one year before the member's death, or
before the occurrence of the injury or onset
of the illness that resulted in the member's
death. A surviving spouse is entitled to the
1959 Survivor Benefit as long as they have
care of an eligible child,OR are at least age 62
(age 60 at Level 4, 5, and under the Indexed
Level). A surviving spouse may remarry and
continue to receive their allowance.
Children: An unmarried child of the member,
or an unmarried stepchild (if the child was
living with the member in a parent-child
relationship) is eligible for benefits while . .
under age 22.An unmarried child
incapacitated because of a disability which
began before attaining age 22 may be entitled
to the benefit until the disability ends. If a
child is in the care of a guardian or is living on
their own,the child's portion of the benefit is
payable to the guardian or to the child
directly,rather than to the surviving spouse.
Parents: A parent may be eligible if there is
no surviving spouse or eligible children, and y
the parents) was dependent on the member
for at least half of their support at the time of
the member's death.
_ N
•
TaXWORity[Y The Benefit
The 1959 Survivor Benefit is a taxable
allowance and will be reported by Ca1PERS to
the taut authorities each year on a Form 1099R
Some surviving spouses are subject to a
mandatory 20 percent federal withholding
on all or a portion of their 1959 Survivor
Benefit allowance. `.
If the 20 percent federal withholding applies,
a spouse may avoid the withholding if they
elect to have the allowance directly rolled
over into an individual retirement account
(IRA). A form to elect a rollover will be
provided at the time benefits are payable
if the payee is subject to the mandatory '
20 percent withholding. _
All or a portion of the allowance may be
rolled over to an IRA, or else be subject to
20 percent withholding, under the following
circumstances:
• The entire allowance is subject to
20 percent withholding, or may be rolled t
over to an IRA, if the payee is'a surviving
spouse who has care of children who will
all turn age 22 in less than 10 years from ,
the effective date of the allowance.
• A portion of the allowance is subject to
20 percent withholding, or may be rolled
over to an IRA,if: 1) the payee is a
surviving spouse who has care of at least
two children, and: 2) the payee will
have care of only one eligible child in
less than 10 years from the effective date
of the allowance.
�� 4 •
The.20 percent withholding does not apply
when a spouse receives the allowance at age
60 or 62.
In any case,the surviving spouse is
encouraged to call CalPERS for answers
regarding their specific tax questions.
Fv" I%Abrt--f rdkzTvaficwi
If you have questions or need further information
about the 1959 Survivor Benefit Program.
please contact your nearest CalPERS Office.
CalPERS Benefit Services Division
P.O.Box 942716
Sacramento, CA 94229-2716 _
(916) 326-3848 or (800) 352-2238
(916) 326-3240—Telecommunications
Device For the Deaf
(916) 326-3933—FAX
i
Ca1PERS Regional Offices
Refer to Do You Have The Right Number?
(PERS-PUB-19) for a directory of CaiPERS
Regional Offices locations. (Addresses are also
available on the CalPERS On-Line web site).
CalPERS On-Line
www.calpers.ca.gov
While reading this material,remember that we are
governed by the California Public Employees'
Retirement Law. The statements In this booklet are
general. The retirement law is complex and subject to
change. Therefore, if there is a conflict between the law
and this booklet, any decisions will be based on the law.
For specific tax questions,please call CalPERS or your
tax adviser.
1
5 (�3
a
r I
Res. No. 2002-115
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an regular meeting thereof held on the
18th day of November, 2002 by the following vote:
AYES: Green, Dettloff, Boardman, Cook, Houchen, Winchell, Bauer
NOES: None
ABSENT: None
ABSTAIN: None
'C`ONNIE BROCKW'AY
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California