HomeMy WebLinkAboutCity Council - 2010-38 RESOLUTION NO. 2010-38
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING THE
PUBLIC AGENCY RETIREMENT SYSTEM (PARS)
SUPPLEMENTARY RETIREMENT PLAN (SRP)
WHEREAS, the City of Huntington Beach (the "City") is a member of the Public
Agency Retirement System (PARS) for the purpose of providing tax qualified retirement
benefits; and
WHEREAS, it is to be determined to be in the best fiscal interest of the City and its
employees to provide a supplementary retirement program to eligible employees who wish to
voluntarily exercise their option to separate from City service; and
WHEREAS, the PARS Trust has made available a Supplementary Retirement Plan (SRP)
supplementing Ca1PERS and qualifying under the relevant sections of the Internal Revenue Code
and the California Government Code,
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
1. The City Council, being a member of the PARS Trust, does hereby adopt the
PARS Supplementary Retirement Plan, effective May 3, 2010; and
2. In order for the City to reach stated fiscal and operational objectives, a minimum
savings must be achieved. If this minimum is not reached, the City may withdraw the retirement
incentive. If the City withdraws the retirement incentive, resignations may be rescinded; and
3. The City Council hereby appoints the City Administrator, or his/her successor or
his/her designee as the City's Plan Administrator for the PARS Supplementary Retirement Plan;
and
4. The City's PARS Administrator is hereby authorized to execute the PARS legal
and administrative service documents on behalf of the City to implement a PARS supplemental
benefit program. In addition, if the City's PARS Administrator finds that the PARS
supplemental plan benefit must be limited under Section 415 of the Internal Revenue Code, then
the Plan Administrator will implement replacement benefit programs at no additional cost to the
City.
10-2495/46419
Resolution No. 2010-38
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 3rd day of May , 2010.
REVIEWk APPROVED: APP D AS TO FORM:
City A finis ator �lCty Attorney d
Exhibit A IT T. AN AP V
2010 PARS Supplementary Retirement Plan
Direct uma esources
10-2495/46419
Resolution No. 2010-38
2010 PARS Supplementary Retirement Plan Exhibit A
City of Huntington Beach
Miscellaneous Employees
With regard to the PARS Supplementary Retirement Plan for 2010, the City proposes the
following:
1.0 Eligibility
1.1 Those Miscellaneous employees and Marine Safety (excluding Executive
Management employees and elected officials) who:
a) are employed by the City as of May 3, 2010,
b) are fifty (50) years of age as of September 30, 2010;
c) have at least five (5) years of City service as of September 30, 2010;
d) Resign from City employment effective no later than September 30, 2010; and
e) retire under PERS effective no later than October 1, 2010.
2.0 Participation Requirements
2.1 Participating employees shall submit all required PARS enrollment materials and City
Letter of Resignation to PARS. on or before the deadline date of June 18, 2010.
Resignations of participants are irrevocable as of the enrollment deadline and may not
be rescinded unless the City withdraws the incentive pursuant to Paragraph 2.2 below.
2.2 If after the close of the enrollment window the City determines that the plan does not
meet the City's fiscal and operational objectives, the City may withdraw the incentive,
provided it notifies the employees of the withdrawal of the incentive on or before July
6, 2010. If the City withdraws the incentive for employees, their Letter of Resignation
will be automatically rescinded.
2.3 Participation in the retirement incentive requires:
a. Submission of required PARS enrollment materials and City Letter of
Resignation to PARS by June 18, 2010;
b. Resignation from City employment effective no later than September 30,
2010; and
c. Retirement from PERS and the PARS Supplementary Retirement Plan on or
before October 1, 2010.
Prepared by PARS (Public Agency Retirement Services) Pagel
Resolution No. 2010-38
2010 PARS Supplementary Retirement Plan
City of Huntington Beach
Miscellaneous Employees
3.0 Incentive Payments
3.1 Regarding the basic incentive under this plan:
a) The basic, unmodified benefit shall be a monthly cash payment for the lifetime of
the participant.
b) The monthly cash payment amount shall equal one-twelfth of seven percent
(7.00%) of Final Pay.
c) For purposes of this plan, Final Pay shall be defined as the employee's current
base annual salary as of July 1, 2010.
3.2 Alternative monthly forms of payment of equivalent present value to the basic benefit
shall be offered. They shall include:
a) Joint-and-survivor payments;
b) Payments made for the life of the participant, subject to a ten year minimum;
and
c) Fixed term payments of from five (5) to fifteen (15) years. These payments are
guaranteed to the participant for the full term selected.
3.3 The amount of monthly payment shall be fixed as of June 18, 2010 and shall not be
subject to increase thereafter.
3.4 The choice of form of payment (and the choice of payment beneficiary if choosing a
joint and survivor form of payment) shall become final as of June 18, 2010 and shall
not be subject to change thereafter.
3.5 PARS benefits are to commence October 1, 2010.
4.0 Contract Administrator
The Contract Administrator for the Retirement Incentive shall be PARS.
4.1 In the event the plan is cancelled due to insufficient participation, the Employer shall
pay Phase li Systems/PARS a one-time fee of$5,000.00.
4.2 The fee for Phase II Systems/PARS shall be 5.0% of plan contributions to the PARS
Trust for services related to the Supplementary Retirement Plan.
Prepared by PARS (Public Agency Retirement Services) Page 2
Resolution No. 2010-38
2010 PARS Supplementary Retirement Plan
City of Huntington Beach
Miscellaneous Employees
Projected Timeline:
1. City Council approval of PARS Incentive May 3, 2010
2. Enrollment Packets Mailed to Employees' Home May 5, 2010
3. Employee Orientation Meeting Week of May 10, 2010
4. Employee Enrollment Workshop Week of June 14, 2010
5. Enrollment Window Closes June 18, 2010
6. City receives Post-Analysis no later than June 25, 2010
7. City announces whether Plan goes forward no later than July 6, 2010
8. Employees Resign from City employment on or before September 30,
2010
9. Employees Retire under PERS,
& PARS SRP on or before October 1, 2010
10. Benefits Commence October 1, 2010
Prepared by PARS (Public Agency Retirement Seru,ices) Page 3
Res. No. 2010-38
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN 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 a regular meeting thereof held on May 3, 2010 by the following vote:
AYES: Carchio, Coerper, Green, Bohr, Dwyer, Hansen
NOES: None
ABSENT: Hardy
ABSTAIN: None
CiV. Clerk and ex-offici : lerk of the
City Council of the City of
Huntington Beach, California