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HomeMy WebLinkAbout9/18/2002 - STAFF REPORTS (12) RESOLUTION NO. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING A CORRECTION TO THE AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF PALM SPRINGS. WHEREAS the City Council of the City of Palm Springs hereinafter referred to as Public Agency, and the Board of Administration of the Public Employees' Retirement System entered into a contract effective January 1, 1957 providing for the participation of Public Agency in the Public Employees' Retirement System;and WHEREAS due to an inadvertence, paragraph "S' read: "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 21354.5 of said Retirement Law, subject to the reduction provided therein for service prior to December 31, 1974, termination of Social Security, for members whose service has been included in the Federal Social Security(2.7%at age 55 Full and Modified)" [Note that legislation has been proposed that could amend Government Code Section 21354.5 to make the 2.7% at 55 benefit formula applicable to both active members and inactive members who have not yet retired. If enacted, this amendment could have an effect on your agency's actuarial valuation and employer contribution rates in future years.]; and WHEREAS Section 20472 of the Government Code provides that corrections may be made through amendments approved by the adoption of suitable resolutions by the contracting parties; NOW, THEREFORE, BE IT RESOLVED that said governing body of Public Agency authorizes, and it does hereby authorize, a correction to the amendment to contract effective April 28, 2002,as follows: A. Paragraph 5 of said contract shall be changed as follows: "The percentage of final compensation to be provided for each credited prior and current service as a local miscellaneous member in employment before and not on or after April 28, 2002, shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service prior to December 31, 1974, termination of Social Security, for members whose service has been included in Federal Social Security (2% at age 55 Full and Modified)"; and B. Paragraph 6 of said contract shall be added as follows: "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 April 28. 2002, shall be determined in accordance with Section 21354.5 of said Retirement Law, subject to the reduction provided therein for service prior to December 31, 1974, termination of Social Security, for members whose service has been included in Federal Social Security (2.7% at age 55 Full and Modified)"; and C. Paragraph numbers°6 through 13"; shall be renumbered paragraph numbers 7 through W. BE IT FURTHER RESOLVED, that the presiding officer of the governing body of Public Agency is hereby authorized, empowered, and directed to execute said amendment for and on behalf of Public Agency. ADOPTED this day of 2002. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By CITY CLERK Presiding Officer/Mayor BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY KENNETH W. MARZION, CHIEF ACTUARIAL&EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM 9��