HomeMy WebLinkAboutRetirement Benefits-PERS 1990-93 - Res No. 6210 AuthoriziJ.
HUNTINGTON BEACH
TO:
CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
MICHAEL T. UBERUAGA, City Administrator
FROM: ROBERT J. FRANZ, Deputy City Administrator
SUBJECT: SALARY REPORTING - RETIREMENT
DATE: ,- JANUARY 13, 1993
CITY OF NUNMNG i O[: 'EACH 77
ADMIN!STRAME QUICE
You have requested background information regarding the City's reporting of salary to the
Public Employees' Retirement System (PERS)., In the past 12 months, salary reporting, in
Huntington Beach and many other cities in California, has been the subject of audits by the
State Controller's Office, numerous media articles, proposed State legislation and a flurry
of policy and administrative activity by PERS.
Informal requests by employees to the City to report City payment of employee retirement
contributions as salary dates back to the early 1980's. The City had previously agreed to
pay a portion of employee retirement contributions (7% non -safety, 9% safety employees)
in lieu of a salary increase (called PERS "pick-up"). Employees nearing retirement
correctly concluded that the PERS "pick-up" by the City had no affect on their retirement
while an equivalent salary increase would have increased their PERS retirement by more
than 7% (9% for safety). The City denied such requests as not permissible under MOU's.
Formal meet and confer requests were made by employee organizations, beginning in 1984,
to amend MOU's to provide the conversion of the PERS "pick-up" to salary during the
employee's final year of employment. These requests were granted after meeting and
conferring and reviewing the requests with PERS. The MOU's were later amended to allow
forfeiting of vacation earnings in the final year and instead receiving an equivalent salary,
and a similar conversion of auto allowance to salary in the final year. These new employee
benefits were "costed" as a part of the increased cost of the salary/benefit package
negotiated with employee groups.
Over the years, the City's accounting and personnel staff have closely coordinated with
PERS regarding correct reporting procedures. (Employees have no control over amounts
reported to PERS). . In addition to informal advice from PERS, written approvals have
been received from PERS regarding City reporting procedures. In 1987 PERS reviewed our
MOU's and advised us of changes they recommended. Those changes were made. PERS also
issued advice to all cities, in writing, stating that Retirement Law does not preclude an
employer from converting benefits to salary. PERS is in an awkward position because they
have approved, in writing, the procedures now questioned by the State Controller's audit.
In retrospect if PERS had disallowed these reporting practices, local agencies and PERS
would have been much better off.
RJF:skd
Deputy City Administrator CITY OF HUNTINGTON BEACH
ADMI $TRATIVE WIDE
WPADSERT:1230
REQUEST FOR CITY COUNCIL ACTION
Submitted to
Submitted by
Prepared by
Date September 4. 1990
R
Honorable Mayor and City Council Members I APPROVBDBY CITY COUNCIL
Michael T. Uberuaga, City Administrato
Robert Franz, Deputy City Administrato
Subject: Authorization for a City Official to submit
retirement applications to the Public Employees'
System
Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception
"��_ 19
CITY LE]
disabil' y
Retirement
Statement of Issue, Kecommendatlon, Analyses, Funding Source, Alternative Actions, Attachments: `V
Statement of Issue
The attached resolution provides authority to the Risk
Manager to submit applications for disability retirement on
behalf of City employees.
Recommendations
Analysis
Adopt the attached resolution.
The purpose of the resolution is to designate the new
position of Risk Manager as the official, empowered with this
authority. Following the retirement of the Insurance and
Benefits Manager, the position title was changed to Risk
Manager to more accurately reflect the duties and
responsibilities.
Funding Source
None -required.
Alternative Action
Empower the governing body in lieu of an individual to submit
applications for disability retirement or wait for the
individual member to apply. The latter could result in
considerable delays as it is o�f�ten in the employee's interest
anYd to the City's detriment to defer signing the application.
Attachments
Resolution to accomplish the recommendations above.
RF.:KSF/sp ` \
I
1 ,
PIO 5/85
1 RESOLUTION NO. 6210
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH AUTHORIZING THE RISK MANAGER TO
SUBMIT APPLICATIONS FOR DISABILITY RETIREMENT TO THE
PUBLIC EMPLOYEES RETIREMENT SYSTEM BOARD
WHEREAS, California Government Code section 21023 provides in
applicable part that the governing body, or an official designated
by the governing body, may make application to the Public
Employees Retirement System Board for disability retirement when a
member is an employee of a contracting agency; and
The Council deems it expeditious and desirable that such
applications for disability retirement be made by the Risk Manager
on behalf of city employees who are permanently unable to perform
their assigned duties,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Huntington Beach that the Risk Manager is hereby authorized,
pursuant to California Government Code section 21023, to make
application for disability retirement for any city employee who,
based on competent medical opinion, is incapacitated for the
performance of duty.
- 1 -
1
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting thereof held on
the 4th day of September 1990.
ATTEST:
�ir�ru,G,
City Clerk
REVIEWED AND APPROVED:
City Admini rator /
- 2 -
Mayor
APPROVED AS TO FORM:
City Atto rneyp6, 1/,11fa
INI,TII ATED/jAPD,APPROVED: --7
Services
Res,. No. 6210
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 a regular meeting thereof held on the 4th day
of September 19 90 by the following vote:
AYES: Councilmembers:
MacAllister, WinchPll., Green Mays, Bannister, Silva -
NOES: Councilmembers:
None
ABSENT: Councilmembers:
Erskine
z�� *!:�4
City ClerFand ex-officTo Clerk
of tHe'City"Council of the City
of Huntington Beac.h, California