HomeMy WebLinkAbout6.10 Amend PERS Agmt 0
CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: September 14, 1987
•
SUBJECT : Public Employees' Retirement System (PERS) Amendment
to Agreement
EXHIBITS ATTACHED : o Resolution of Intention
o Ordinance Amending Agreement
o Agreement Authorizing Benefit Assets and Liabilities
into the Third Level 1959 Survivor Benefit Pool
o 1959 Survivor Benefit Comparisons
o Summary of Benefit Provisions
•
RECOMMENDATION 1) Conduct a public hearing
2) Adopt the Resolution of Intention
3) Approve the Agreement Authorizing 1959 Survivor
Benefit Pool and Authorize Mayor to execute the
Agreement
4) Waive the reading and introduce the Ordinance
5) Continue the second reading to the meeting of
October 12, 1987
6) Authorize Staff to proceed with election require-
ments
FINANCIAL STATEMENT: The maximum City cost of the amendment will be $3.50
per month for each covered employee. If all eligible
positions elect coverage, the annual cost to the City
is approximately $1,176.
DESCRIPTION The City of Dublin currently provides employees with
membership in the Public Employees Retirement System. Agency employees are
not covered by the Federal Social Security System, unless they have
sufficient service credit from another employer.
The Social Security System provides benefits to the survivor of a covered
individual in the event of a death. The Basic PERS program only provides a
lump sum payment which consists of a refund of the members contributions
plus an additional amount equal to one months salary for each year of
service, up to a maximum of six months salary.
The proposed PERS amendment is referred to as the 1959 Survivor Benefit.
The Survivor Benefit is offered at three separate levels. PERS has drafted
the documents providing for the Third Level of Benefits. This level ranges
from 13.7% to 18. 6% less than the similar benefit provided to individuals
covered by Social Security. A memorandum from PERS dated May 19, 1986 is
attached which identifies benefit comparisons. The 1959 Survivor Benefit
defines an eligible survivor and the level of benefits varies depending on
the number of survivors. For example, a surviving spouse with two children
would receive $840 per month, while a surviving spouse alone, over age 620
would receive $350 per month. A description of the program is included in
the attached Summary of Benefit Provisions.
PERS law requires an election to be conducted among current employees of the
agency. These employees will be provided with an opportunity to choose
whether they desire to have the coverage. If an employee elects not to be
covered, he/she will not be required to pay the $2.00 per month employee
contribution. Any new employees hired after the November 21, 1987 effective
date will be required to participate. PERS considers the program to be
basic catastrophic coverage and it is common among PERS contracts which are
COPIES TO:
ITEM NO. • IL1,10
AGENDA STATEMENT: Public Employees' Retirement System (PERS) Amendment to
Agreement
Page 2
not covered by Social Security. Staff has surveyed five surrounding
agencies which are members of PERS. One agency has dual coverage with
Social Security. The remaining four agencies all have the 1959 Survivor
Benefit.
The State Government Code identifies a specific format for the consideration
of amendments to the retirement system. The City Council must adopt a
Resolution of Intention at a public meeting. It is also necessary to adopt
by Ordinance the amended contract. However, the final adoption of the
ordinance cannot occur until 20 days following the Resolution of Intention.
In order to meet this requirement, it is suggested that the City Council
continue the second reading of the ordinance to the regular City Council
meeting on October 12, 1987.
Staff recommends that the City Council conduct a public hearing, adopt the
Resolution of Intention, approve the Agreement, waive the reading and
introduce the Ordinance and continue the second reading to the meeting of
October 12, 1987.
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RESOLUTION NO. - 87
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF DUBLIN
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
WHEREAS, one of the steps in the procedure 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
WHEREAS, the following is a statement of the proposed change:
•
To provide Sections 21380-87 (1959 Survivor Benefits)
including Section 21382.4 (Third Level of 1959
Survivor Benefits) for local miscellaneous 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 the said governing body 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, APPROVED AND ADOPTED this day of
1987.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
9*• * COPY * * *
kVA-
\CS AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
0 �"` OF THE
' PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF DUBLIN
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above public agency, herein-
after referred to as Public Agency, having entered into a contract effective
February 1, 1983, and witnessed December 13, 1982, and as amended effective
April 12, 1986, which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 10 are hereby stricken from said contract as executed
effective April 12, 1986, and hereby replaced by the following paragraphs
numbered 1 through 10 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 60 for local miscellaneous members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after February 1, 1983 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 contract-
ing agency.
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. 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. FIRE FIGHTERS; AND
b. POLICE OFFICERS.
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x * * COPY
5. The fraction 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 21251.13 of said
Retirement Law (2% at age 60 Full) .
6. The%, ollowing additional provisions of the Public Employees'
Re.�.A ement Law, which apply only upon election of a contracting
4eT cy, shall apply to the Public Agency and its employees:
. Section 20835.1 (Limits Prior Service Credit to Members Employed
on Contract Date) .
b. Sections 21380 - 21387 (1959 Survivor Program) including
6..\;') Section 21382.4 (Third Level of 1959 Survivor Benefits) .
4. 7. Public Agency, in accordance with Government Code Section 20759, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
t,, determined as provided in Government Code Section 20759, and such
�Q
' contributions hereafter made shall be held by the Board as provided in
i Government Code Section 20759.
8. Public Agency shall contribute to said Retirement System as follows:
a. With respect to local miscellaneous members, the agency shall
contribute the following percentages of salaries earned as
members of said Retirement System:
(1) 0.159 percent until June 30, 2007 on account of the
liability for prior service benefits. (Subject to annual
change. )
(2) 5.929 percent until June 30, 2011 on account of the
liability for current service benefits. (Subject to annual
change. )
b. Public Agency shall contribute $3.50 per employee on account of
the liability for the 1959 Survivor Program provided under
Section 21382.4 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 beneficiaries of all local
miscellaneous members.
c. A reasonable amount, as fixed by the Board, payable in one in-
stallment 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.
,. r
* * * COPY
d. A reasonable amount, as fixed by the Board, payable in one in-
stallment 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.
9. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' 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.
10. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within thirty 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.
A. This amendment shall be effective on the 21st day of
November , 19 87
a
BOARD OF ADMINISTRATION14 CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMI SYSTEM OF THE
e� CITY OF DUBLIN
BY BY _,\'`
SANDRA C. L *. Presiding Officer �\
ASSISTANT E C b�FfrIVE OFFICER ���
BENEFIT S CES
c ��
4, Witness Date e�
q.../ Attest: � '
494
Clerk Qr:
PERS-CON-702 (AMENDMENT)
(Rev. 9/86)
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•
ORDINANCE NO. - 87
AN ORDINANCE OF THE CITY OF DUBLIN
AMENDING THE AGREEMENT BETWEEN THE CITY OF DUBLIN
AND THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM
TO INCLUDE THE 1959 SURVIROR'S BENEFIT
An Ordinance of the City Council of the City of Dublin
authorizing an Amendment to the Contract between the City of
Dublin and the Board of Administration of the California Public
Employees' Retirement System. The City Council of the City of
Dublin does ordain as follows:
Section 1. That an amendment to the Contract between the
City of Dublin and the Board of Administration, California Public
Employees' Retirement System is hereby authorized, a copy of said
agreement being attached hereto, marked "Exhibit A", and by such
reference made a part hereof as though herein set out in full.
Section 2. The Mayor of the City Council is hereby
authorized, empowered, and directed to execute said amendment for
and on behalf of said Agency.
Section 3. This Ordinance shall take effect 30 days after
the date of its adoption and thenceforth and thereafter the same
shall be in full force and effect.
PASSED, APPROVED AND ADOPTED by the City Council of the City
of Dublin on this day of , 1987 by the following
vote:
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
* * C O P Y
EN L .
•
�� ��� AMENDNNT CONTRACT
TO THE
ME
BOARD OF ADMINISTRATION
OF THE
2\• 1c3 PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
• CITY OF DUBLIN
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above public agency, herein-
after referred to as Public Agency, having entered into a contract effective
February 1, 1983, and witnessed December 13, 1982, and as amended effective
April 12, 1986, which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 10 are hereby stricken from said contract as executed
effective April 12, 1986, and hereby replaced by the following paragraphs
numbered 1 through 10 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 60 for local miscellaneous members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after February 1, 1983 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 contract-
ing agency.
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. 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. FIRE FIGHTERS; AND
b. POLICE OFFICERS.
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* * COPY
5. The fraction 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 21251.13 of said
Retirement Law (2% at age 60 Full) .
0 The following additional provisions of the Public Employees'
A Retirement Law, which apply only upon election of a contracting
4 agency, shall apply to the Public Agency and its employees:
a. Section 20835.1 (Limits Prior Service Credit to Members Employed
on Contract Date) .
b. Sections 21380 - 21387 (1959 Survivor Program) including
Section 21382.4 (Third Level of 1959 Survivor Benefits) .
7. Public Agency, in accordance with Government Code Section 20759, shall
a not be considered an "employer" ,for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
v$' determined as provided in Government Code Section 20759, and such
(ta. contributions hereafter made shall be held by the Board as provided in
Government Code Section 20759.
8. Public Agency shall contribute to said Retirement System as follows:
a. With respect to local miscellaneous members, the agency shall
contribute the following percentages of salaries earned as
members of said Retirement System:
(1) 0.159 percent until June 30, 2007 on account of the
liability for prior service benefits. (Subject to annual
change. )
(2) 5.929 percent until June 30, 2011 on account of the
liability for current service benefits. (Subject to annual
change. )
b. Public Agency shall contribute $3.50 per employee on account of
the liability for the 1959 Survivor Program provided under
Section 21382.4 of said Retirement Law. (Subject to annual
change. ) In addition, all assets and liabilities of Public
Agency and its employees shall be pooled in a single account,
based on term insurance rates, for beneficiaries of all local
miscellaneous members.
c. A reasonable amount, as fixed by the Board, payable in one in-
stallment within 60 days of date of contract to cover the costs
of administering said System as it affects the employees of
Public Agency, not including the costs of special valuations or
of the periodic investigation and valuations required by law.
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d. A reasonable amount, as fixed by the Board, payable in one in-
stallment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
9. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
10. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within thirty days
after the end of the period to which said contributions refer or as
may be prescribed by Board regulation. If more or less than the
correct amount of contributions is paid for any period, proper
adjustment shall be made in connection with subsequent remittances.
Adjustments on account of errors in contributions required of any
employee may be made by direct payments between the employee and the
Board.
B. This amendment shall be effective on the 21st day of
November , 19 87
BOARD OF ADMINISTRATION �$�� CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT STEM OF THE
& CITY OF DUBLIN
df
BY . BY
SANDRA C. LUND • Presiding Officer .
ASSISTANT EXECUTI E FFICER
BENEFIT SERVICES LV
,c) Witness Date C7
-72 Attest: r!:•
Clerk
Q�'4o
PERS-CON-702 (AMENDMENT)
(Rev. 9/86)
AGREEMENT
AUTHORIZING THE RELEASE OF
1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES
INTO THE
THIRD LEVEL 1959 SURVIVOR BENEFIT POOL
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF DUBLIN
WHEREAS, the City Council of the City of Dublin has adopted a Resolution of
Intention to include in its contract with the Board of Administration,
Public Employees' Retirement System, pursuant to Government Code
Sections 21380-21387, including Government Code Section 21382.4, the
Third Level of 1959 Survivor Benefits; and
WHEREAS, Government Code Section 21382.4, requires all assets and liabilities
of all contracting agencies subject to this section, and their
employees who are covered by this section, to be pooled into a single
account;
NOW THEREFORE BE IT AGREED:
Accumulated and/or future contributions required of the City of Dublin
and its covered employees are to be released, pursuant to the
provisions of Government Code Section 21382.4, to a single account
referred to herein as the Third Level 1959 Survivor Benefits Pool.
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE
CITY OF DUBLIN
BY BY
SANDRA C. LUND Presiding Officer
ASSISTANT EXECUTIVE OFFICER
BENEFIT SERVICES
Date
C0505 (Rev. 9/86)
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a>=PER Document No.
, Circular Letter to:: May 19, 1986
Index>
California Public Employees'Retirement System
P.O.Box 90109 Distribution: VI, IIB
Sacramento,CA 95809- 0109 t�milar getter No., 900-300
I 918 X�4455 55 0o�
Telecomnlunfc7aUons Device For {{ I; t_: Yr
The Deaf—No Voice(916)
i
PUBLIC AGENCIES
U.'.I” L i' 19.1!3
i Tm
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Subjects 1959 SURVIVOR BENEFIT COMPARISONS
I
1 The 1959 Survivor Benefit provides monthly allowances to eligible survivors of
o a member who dies prior to retirement. This benefit is in addition to the
Basic Death Benefit or the 1957 Survivor Benefit but would be reduced by the
1 Industrial Death Benefit if payable. Coverage is prohibited for members
i covered under Social Security.
1 Three levels of the 1959 Survivor Benefit are available:
Survivor Group Standard Increased Third
k . Level Level Level
,.
' #180 $225 $350
Spouse age 62 or older,
or one child alone •
1
4 Spouse with one child, $360 $450 $700
or two children alone
Spouse with two or more #430 $538 #840
children, or three
1 children alone
•
11Coparable benefits under Social Security average $415, $796, and $988 II
:re:pectively.
The monthly non-refundable employee cost under any of the levels is $2.00.
The monthly employer cost depends upon the level of benefits selected and
whether your agency is currently participating in the 1959 Survivor Benefit
program.
Employer costs for agencies not currently participating:
Employee Standard Increased Third
Classification Level Level Level
Miscellaneous .150% of payroll .150% of payroll $3.50/covered
employee
Safety .075% of payroll .075% of payroll $3.50/covered
employee
For most agencies .150% of payroll is equivalent to ;3.00/covered employee,
and .0,b7t is equivalent to $1.50/covered employee. •
Employer costs for agencies currently participating in the 1959 Survivor
Benefit program who amend to the Third Level will vary depending upon each
agency's 1959 Survivor Reserve level. The coat to the employer for each
covered employee is $3.50 each month. No payment is required if the agency has
at least two years of 1959 Survivor Benefit Reserve surplus. If there is a
deficit in an agency's 1959 Survivor Reserve, or less than a two year surplus,
a transfer will be made from the agency's current service reserve and the $3.50
payment per employee is required. (The transfer may cause a slight increase in
{ the current service portion of your total employer rate). The $3.50 payment
per employee will be billed annually by October of the year following the year
of coverage.
•
Contracting for other than the Standard Level will unpool your agency from the
j miscellaneous employer reserve pool. Unpooling may cause your pension rates to
increase or decrease depending upon your agency's individual experience.
The 1959 Survivor Benefits are somewhat less than the level provided by
"' Social Security. However, agencies without Social Security coverage may find
the higher levels of the 1959 Survivor Benefit program cost effective even
though unpooling is required.
If you have any questions concerning this information or contracting
procedures, please contact the Contract Office, Field and Contracts Services
Division, PERS, P.O. Box 90109, Sacramento, CA, 95809-0109, (916) 445-6570 or
ATSS 485-6570. •
.0.4.0-ta- 144 01-44-at-
Summary of Benefit Provisions
Third Level 1959 Survivor Benefits
Government Code Sections 21380-21387, including Section 21382.4
General: The 1959 Survivor Benefits are paid monthly to certain survivors
of a member who dies before retirement. The covered member's
survivors receive the following monthly allowances regardless of
whether the member was eligible to retire at the time of death.
Surviving spouse with two or more dependent children; or three or
more dependent children, alone $840
Surviving spouse with one dependent child; or two dependent children,
alone $700
Surviving spouse, alone, age 62 or over; dependent mother and depen—
dent father, age 62 or over; or one dependent child $350
Definitions of Survivors
1. A dependent child is one under the age of 22 and unmarried, or a
5 disabled child of any age whose disability began before and has
continued without interruption after attainment of age 22.
2. A spouse ceases to be eligible for a benefit upon remarriage.
o 3. A surviving spouse must be married to the member prior to the
occurrance of the injury or onset of the illness which resulted in
death.
Concurrent Benefits
The 1959 Survivor Benefits would be payable in addition to the following
benefits, if applicable:
Basic Death Benefit — This benefit provided is a refund of the member's
accumulated contributions, with interest, plus an additional amount equal
to one month's salary for each year of service, up to a maximum of six
months salary.
1957 Survivor Benefit — This benefit is a monthly allowance equal to
one—half of what the unmodified retirement allowance would have been had
the member been retired at the time of death.
•
Special Death Benefit (applies to local safety members only) — This
benefit is a monthly allowance equal to one—half of your "final compensa-
tion". The 1959 Survivor Benefits payable in any month shall be reduced
by the amount of the special death benefit allowance.
Cost To The Employee — The cost to the employee is $2.00 monthly (non-
refundable), in addition to normal retirement contributions.
PERS—CON-24b
C10019 (3/86)