HomeMy WebLinkAbout8/21/2002 - STAFF REPORTS (4) Date: August 21, 2002
To: City Council
From: Director of Human Resources
SUBJECT: CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM
MISCELLANEOUS EMPLOYEES
CORRECTION TO THE AMENDMENT TO CONTRACT
RECOMMENDATION:
It is recommended that City Council authorize a correction to the Amendment to the
Contract dated effective April 28, 2002, between the Board of Administration of the
California Public Employees' Retirement System (CaIPERS) and the City Council of
the City of Palm Springs.
SUMMARY:
Adoption of the enclosed Resolution clarifies that the contract is in accordance with
the Government Code by indicating that the new formula applies only to the local
miscellaneous members employed by the City of Palm Springs (referred to as Public
Agency) on or after the Amendment effective date. It does not change the effective
date of the original Amendment effective date of April 28, 2002.
BACKGROUND:
City Council adopted on March 20, 2002, Ordinance 1607 authorizing an
Amendment to the Contract between the Board of Administration of the California
Public Employees' Retirement System (CaIPERS) and the City Council of the City of
Palm Springs to the 2.7% @ 55 Full and Modified Formula for Local Miscellaneous
Members
The Contract Amendment adopted provided the new benefit formula for local
miscellaneous members and was written by CaIPERS to indicate that the new
formula was applicable to all local miscellaneous members. This was done because
legislation was being considered to make the new formulas applicable to all inactive
and active employees who had not yet retired. That legislative proposal is no longer
being considered and the new formula is applicable to only those local miscellaneous
members in employment on or after the amendment effective date.
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Section 20472 of the Government Code provides that the contracting parties may
make corrections through amendments approved by the adoption of suitable
resolutions. Adoption of the enclosed Resolution, as drafted by CaIPERS, makes the
correction as described above and clarifies hat the contract is in ac;ordance with the
Government Code by indicating that the new formula applies only to the local
miscellaneous members employed by Agency on or after the amendment effective
date. It does not change the effective date of the original amendment effective date.
SUSAN E. MILLS ,
Director of Human Resources
APPROVED: `% Q � <
City Manager ,
ATTACHMENTS: Resolution Authorizing a Correction to the Amendment to
Contract
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"5"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)';and
WHEREAS Section 20472 of the Goverment 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
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C. Paragraph numbers"6 through 13';shall be renumbered paragraph numbers"7
through 14',
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