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2012/04/24 City Council Ordinance 846 ORDINANCE NO. 846 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY O~' ROHNERT PARK AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM THE CITY COUNCIL OF THE CITY OF ROHNERT PARK, CALIFORNIA, does hereby ordain as follows: Section I. That an amendment to the contract between the City Council of the City of Rohnert Park and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, 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 prior to the expiration of 15 days from the passage thereof shall be published at least once in The Community Voice, a newspaper of general circulation, published and circulated in the City of Rohnert Park and thenceforth and thereafter the same shall be in full force and effect. This ordinance was introduced on the 27th day of March, 2012 and DULY AND REGULARLY ADOPTED this 24th day of April, 2012 by the following roll call vote: AYES: FOUR (4) NOES: NONE (0) ABSENT: ONE (1) ABSTAIN: NONE (0) ATTEST: Councilmembers Ahanotu, Callinan, Stafford and Mayor Mackenzie Councilmember Belforte APPROVED: ~ ~c1~J / ttorney . I A. CalPERS EXHIBIT California Public Employees' Retirement System .+ AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Rohnert Park +- ~ . The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, . hereinafter referred to as Public Agency, having entered into a contract effective July 1, 1965, and witnessed May 17,1965, and as amended effective August 2, 1972, October 1, 1977, January 1, 1980, June 1, 1987, March 1, 1990, February 14, 1992, June 27, 1992, July 1,1997, July 1,1998, October 25,2002, July 1, 2007, July 1, 2008 and July 1, 2011 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 15 are hereby stricken from said contract as executed effective July 1, 2011, and hereby replaced by the following paragraphs numbered 1 through 16 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 a9,e 5q; for local miscellaneous members; age 50 for 10c~1 safety members entering membership in the safety classification on or prior to the effective date of this amendment to contract and age 55 for local safety members entering membership for the first time in the safety classification after the effective date of this amendment to contract. . 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1965 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 contracting agency. 3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, theCalPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided' under the Public Agency's prior non-CaIPERS retirement program. (b) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency's agreement with a third party other than CalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. (d) Public Agency's election to file for bankruptcy under Chapter 9 (commencing with section.901) of Title 11 of the United States Bankruptcy Code and/or Public Agency's election to reject this Contract with the. CalPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. (g) Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 4. 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. Local Fire Fighters (herein referred to as local safety members); b. Local Police Officers (herein referred to as local safety members); c. Employees other than local safety members (herein referred to as local miscellaneous members). 5. 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: NO ADDITIONAL EXCLUSIONS 6. . Prior to January 1, 1975, those members who were hired by Public , Agency on a temporary and/or seasonal basis not to exceed 6 months . were excluded from PERS membership by contract. Government Code Section 20305 supersedes this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1,1975. . 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment before and not on or after July 1-,2007 shall be determined in accordance with Section 21354 of said Retirement Law subject to the reduction provided therein for Federal Social Security (2% at age 55 Modified and Full). 8. 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' July 1, 2007 and not entering membership for the first time in the miscellaneous classification after July 1, 2011 shall be determined in accordance with Section 21354.5 of said Retirement Law subject to the reduction provided therein for Federal Social Security (2.7% at age 55 Modified and Full). 9. The percentage of final compensation to be provided for each year of credited current service as a local miscellaneous member entering membership for the first time in the miscellaneous classification after July 1, 2011 shall be determined in accordance with Section 21354 of said Retirement Law (2% atage 55 Modified and Full). 10. The percentage of final compensation to be provided for each year of " credited prior and current service as a local safety member entering membership in the safety classification on or prior to the effective date of this amendment to contract shall be getermined in accordance with Section 21363.2 of said Retirement Law (3% at age 50 Full). 11. The percentage of final compensation to be provided for each year of credited current service as a local safety member entering membership for the first time in the safety classification after the effective date of this amendment to contract shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age55 Full). 12. Public Agency elected. and elects to be subject to the following optional' provisions: a. Section 21573 (Third Level of 1959 Survivor Benefits). b.Section 20965 (Credit for Unused Sick Leave). c" 'Section 21335 (5% Cost-of-Living Allowance) for" those local miscellaneous members and local safety members entering membership.in the miscellaneous or safety classification on or prior to July 1, 2008. d. Section 20042 (One-Year Final Compensation) for local miscellaneous members and for those local safety members entering membership on or prior to the effective date of this amendment to contract. e.Section 21024 (Military Service Credit as Public Service). f. Section 20903 (Two Years Additional Service Credit). g. Section 21027 (Military Service Credit for Retired Persons). h. Section 21023.5 (Public Service Credit for Peace Corps, AmeriCorps VISTA, or AmeriCorps Service). i. Section 20475 (Different Level of Benefits). Section 21335 (2% Annual Cost-of-Living Allowance Increase) is applicable to local miscellaneous and local safety members entering membership for the first time in the miscellaneous or safety classification after July 1, 2008. Section 21354 (2% @ 55 Full formula) is applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after July 1, 2011. Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three- Year Final Compensation) are applicable to local safety members entering membership for the first time in the safety classification after the effective date of this amendment to contract. 13. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. 14. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21573 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 survivors of all local miscellaneous members and local safety members. b. A reasonable amount, as fixed by the Board, payable in one installment 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., c. A reasonable amount, as fixed by the Board, payable in one installment 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. 15. 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. 16. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen 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 4th day of June , 2012 . BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ROHNERT PARK BY ,KAREN DE FRANK, CHIEF CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY PRESIDING OFFICER Witness Date Attest: Clerk AMENDMENT CalPERS 10 #1238309969 PERS-CON-702A