6260ORDINANCE NO. 6260
A UNCODIFIED URGENCY ORDINANCE OF THE CITY OF
ANAHEIM AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY OF ANAHEIM AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the contributions required to fund the City's retirement plans represent the
largest expense associated with personnel costs at the City of Anaheim; and
WHEREAS, the City has an opportunity to reduce the expense of pension costs for
certain Fire Public Safety Plan new hires who are not subject to the benefit formulas enacted by
the California Public Employee Pension Reform Act of 2013, and has the opportunity to exclude
certain limited -duration classifications from membership into the Miscellaneous Plan; and
WHEREAS, with the adoption of the Memorandum of Understanding between the City
and the Anaheim Fire Association ("MOU") a lower defined benefit retirement plan has been
agreed upon, necessitating an amendment of the City's contract with the California Public
Employees' Retirement System ("CalPERS"). This plan will apply to individuals who are
laterally hired into fire classifications in the City after the effective date of the CalPERS contract
amendment, and will consist of a benefit formula of 2% at age 50 with a final compensation
measurement period of the average of three (3) consecutive years, and with the employee paying
the full required member contribution; and
WHEREAS, without this amendment, individuals hired into the City's fire service after
January 1, 2013 who have recent CalPERS service credit through a prior employer will be
afforded the current pension benefit formula of 3% at age 50; and
WHEREAS, CalPERS has also approved a categorical exemption of the newly -created
positions of Council Aide I, Council Aide II and Senior Policy Aide from CaIPERS membership,
which also requires an amendment to the City's contract with CalPERS; and
WHEREAS, the City Council is required to enact an ordinance that will take effect prior
to December 31, 2012 in order to effectuate the above-described amendments to the City's
contract with CalPERS. Without the amendment to the Fire Safety Plan, the provisions of the
MOU setting forth a lower retirement benefit tier in that Plan will be null and void due to
changes in the retirement law that take effect on January 1, 2013.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES
ORDAIN AS FOLLOWS:
SECTION 1.
An amendment to the contract between the City of Anaheim and the Board of
Administration, California Public Employees' Retirement System is hereby authorized, a copy of
said amendment being attached hereto, designated "Exhibit A," and by this reference made a part
hereof as though set out in full.
SECTION 2.
The Mayor of the City of Anaheim is hereby authorized, empowered, and directed to
execute said amendment for and on behalf of the City.
SECTION 3.
The City Council declares that this ordinance is necessary as an emergency measure for
the immediate preservation of the public peace, health or safety pursuant to Section 65858(a) of
the California Government Code and Section 511 of the Anaheim City Charter, and that the
reasons for its urgency are as follows:
1. The City, like public agencies across the country, has been facing budget shortages
and fiscal challenges. The contributions required to fund the City's retirement plans represent
the largest expense associated with the City's personnel costs, and are a major contributor to the
City's future contingent liability. The City has an opportunity to reduce pension costs in two
respects. However, to do so, it must enact an ordinance amending its contract with CAPERS
prior to December 31, 2012, because of the State statutes reforming the pension laws that will
take effect on January 1, 2013.
2. It is in the City's interest to amend its contract with CalPERS to exclude persons in the
classifications of City Council Aide I, City Council Aide II, and Senior Policy Aide hired on or
after the date the contract is amended from the retirement system. Additionally, it is in the City's
interest to amend the CalPERS contract to set the formula for all local fire members entering
membership for the first time in the City's fire classification after the effective date of that
amendment at 2% at age 50, with benefits being calculated based on an average over three years
of service. CalPERS has incorporated both modifications into the current proposed contract
amendment. If the change to the Fire Safety Plan is not made before December 31, 2012, fire
personnel who are hired from another CALPERS member agency will be entitled to participate
in the City's CALPERS retirement system under a formula of 3% at age 50.
2
3. Amending the City's contract with CALPERS to effectuate the changes set forth
above is expected to result in significant future cost savings to the City. It will also further the
public interest in pension reform and put the persons who will be affected by the changes at
benefit levels commensurate with their positions.
4. Ca1PERS did not agree to or formulate the proposed amendment to its contract
with the City until mid-November 2012. Due to the City Council's meeting schedule in
November and December 2012, it was not possible to put this ordinance on the Council's regular
meeting agenda for first and second readings in time to have the ordinance take effect before
December 31, 2012. Accordingly, this ordinance is being passed as an urgency ordinance.
SECTION 4.
This ordinance shall take effect immediately as an urgency measure pursuant to
California Government Code Section 65858.
SECTION 5.
The City Council of the City of Anaheim hereby declares that should any section,
paragraph, sentence or word of this ordinance of the Code, hereby adopted, be declared for any
reason to be invalid, it is the intent of the Council that it would have passed all other portions of
this ordinance independent of the elimination herefrom of any such portion as may be declared
invalid.
(Remainder of page intentionally left blank, signatures on next page)
M
THE FOREGOING ORDINANCE is approved and adopted by the City Council of the
City of Anaheim this 18th day of December 2012.
AYES: Council Members Brandman, Eastman, Kring and Murray
NOES: Mayor Tait
ABSENT: None
ABSTAIN: None
CIT AH M
MAYOR OF THE CITY OF ANAHEIM
ATTES
ev"o
CITY CLERK OF THE CITY OF ANAHEIM
92751
CaIPERS
California
Public Employees' Retirement System
400INNINNOMM
EXHIBIT A
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Anaheim
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
September 1, 1950, and witnessed July 25, 1950, and as amended effective July 1,
1956, September 1, 1956, July 1, 1959, May 1, 1962, August 1, 1962, January 22,
1965, April 28, 1967, September 27, 1968, July 2, 1971, October 1,1973, December 26,
1974, May 30, 1975, June 26, 1975, June 25, 1976, May 13, 1977, January 3, 1978,
April 28, 1978, September 15, 1978, February 10, 1984, November 1, 1985, May 9,
1986, August 19, 1988, January 6, 1989, May 24, 1991, June 19, 1992, August 26,
1994, July 7, 2000, July 6, 2001, October 17, 2001, July 18, 2003, October 24, 2003,
June 18, 2004 and December 2, 2005 which provides for participation of Public Agency
in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective December 2, 2005, and hereby replaced by the following paragraphs
numbered 1 through 16 inclusive:
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 55 for local miscellaneous members and age 50 for local safety
members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after September 1, 1950 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, the CaIPERS 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
CaIPERS 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 CaIPERS 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:
a. SCHOOL CROSSING GUARDS AND PERSONS EMPLOYED
TEMPORARILY IN THE PARK AND RECREATION
DEPARTMENT HIRED ON OR AFTER SEPTEMBER 1, 1966;
b. ADMINISTRATIVE INTERNS, EXAMINATION PROCTORS,
LIBRARY PAGES, PERSONS EMPLOYED TEMPORARILY IN
THE CONVENTION CENTER AND/OR STADIUM, PUBLIC
WORKS DEPARTMENT, UTILITIES DEPARTMENTS, AND
PERSONS EMPLOYED TEMPORARILY IN RELIEF CAPACITY
HIRED ON OR AFTER APRIL 28, 1967. "TEMPORARY
EMPLOYMENT" FOR PURPOSES OF THESE EXCLUSIONS
SHALL BE EMPLOYMENT ON AN HOURLY, PER DIEM, PER
GAME, OR PER EVENT BASIS;
C. POLICE CADETS HIRED ON OR AFTER JANUARY 1, 1975;
AND
d. CITY COUNCIL AIDE I, CITY COUNCIL AIDE 11 AND SENIOR
POLICY AIDE HIRED ON OR AFTER THE EFFECTIVE DATE OF
THIS AMENDMENT TO CONTRACT.
6. Public Agency and the San Gabriel Valley Municipal Data System have
agreed to a merger of their contracts, and this contract shall be a
continuation of the benefits of the contract of the San Gabriel Valley
Municipal Data System, pursuant to Section 20567.6 of the Government
Code. Such merger is effective as of March 3, 1978. Public Agency, by
this contract, assumes the assets and liabilities accumulated under the
former contract of the San Gabriel Valley Municipal Data System.
Legislation repealed said Section effective January 1, 1988.
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 December 2, 2005 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 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 December 2, 2005 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member and for those
local fire members entering membership in the fire classification on or
prior to the effective date of this amendment to contract shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
10. The percentage of final compensation to be provided for each year of
credited current service as a local fire member entering membership for
the first time in the fire classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21362 of said Retirement Law (2% at age 50 Full).
11. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624, 21626 and 21628 (Post -Retirement Survivor
Allowance).
b. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
C. Section 21222.2 (One -Time 5% Increase - 1971). Legislation
repealed said Section effective January 1, 1980.
d. Section 20965 (Credit for Unused Sick Leave).
e. Section 20042 (One -Year Final Compensation) for local
miscellaneous members, local police members and for those local
fire members entering membership on or prior to the effective date
of this amendment to contract.
f. Section 21389 (Second Opportunity to Elect 1959 Survivor
Benefits) for local miscellaneous members only. Legislation
repealed said Section effective September 27, 1979.
g. Section 20431 ("Local Police Officer" shall include city jail,
detention or correctional facility employees as described in
Government Code Section 20431).
h. Section 20503 (To Remove the Exclusion of "Management Intern",
Prospectively from May 24, 1991).
Section 21024 (Military Service Credit as Public Service).
Section 21574 (Fourth Level of _1959 Survivor Benefits).
k. Section 21548 (Pre -Retirement Option 2W Death Benefit).
Section 21623.5 ($5,000 Retired Death Benefit).
M. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21362.2 (3% @ 50 Full formula) for local police members.
From and after June 18, 2004 the police employees of Public
Agency shall be assessed an additional 2.5% of their compensation
for a total contribution rate of 11.5% pursuant to Government Code
Section 20516.
n. Section 20475 (Different Level of Benefits). Section 21362 (2% @
50 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local fire members entering
membership for the first time in the fire classification after the
effective date of this amendment to contract.
12. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
May 30, 1975. Accumulated contributions of Public Agency shall be fixed
and determined as provided in Govemment Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
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 21574 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 micellaneous 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.
r 9-fK --
B. This amendment shall be effective on the -4 day of MckoM $6 2 t-° VL
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITYOFANA:15
M`
BY 4)�M &IA&I
KAREN YEFRANK, I(=FRESID G OFFICER
CUSTOMER ACCOUNT SERVICES DIVfSION,�`'`
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
f-�-31 - I, -)-
Witness Date
Attest:
—&,Lra /)
Clerk
AMENDMENT CaIPERS ID #6207170049
PERS-CON-702A
CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA ANDAL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Ordinance No. 6260 and was published in the Anaheim Bulletin on the 27'" day of
December, 2012.
PM4ACID
CITY CLERK OF THE CITY OF ANAHEIM
(SEAL)
STATE OF CALIFORNIA, )
) ss.
County of Orange )
I am a citizen of the United States and a resident
of the County aforesaid; I am over the age of
eighteen years, and not a party to or interested in
the above -entitled matter. I am the principal
clerk of the Anaheim Bulletin, a newspaper that
has been adjudged to be a newspaper of general
circulation by the Superior Court of the County
of Orange, State of California, on December 28,
1951, Case No. A-21021 in and for the City of
Anaheim, County of Orange, State of California;
that the notice, of which the annexed is a true
printed copy, has been published in each regular
and entire issue of said newspaper and not in any
supplement thereof on the following dates, to
wit:
December 27, 2012
"I certify (or declare) under the penalty of
perjury under the laws of the State of California
that the foregoing is true and correct":
Executed at Santa Ana, Orange County,
California, on
Date: December 27, 2012
Signature
Anaheim Bulletin
625 N. Grand Ave.
Santa Ana, CA 92701
(714) 796-2209
ORDINANCE NO. 6260
A UNCODIFIED URGENCY ORDINANCE OF THE CITY OF
ANAHEIM AUTHORIZING AN AMENDMENT TO THE CON-
TRACTTHE CITY OF ANAHEIM AND TH
BOARD OF EMINISTRATIION OF THE CALIFORNIA PUB-
LIC EMPLOYEES' RETIREMENT SYSTEM
's retirement
the largestEexpense associatedtions required to fund the w with personnel costs at the City of Anaheim; plans rpresen
and
WHEREAS, the City has an opportunity to reduce the expense of pension costs fo
certain Fire Public Safety Plan new hires who are not subject to the benefit formulas enact
ed by the California Public Employee Pension Reform Act of 2013, and has the opportunitl
to exclude certain limited -duration classifications from membership into the Miscellaneou.
Plan; and
WHEREAS, with the adoption of the Memorandum of Understanding between tht
City and the Anaheim Fire Association ("MOU") a lower defined benefit retirement plan ha:
been agreed upon, necessitating an amendment of the City's contract with the Californie
Public Employees' Retirement System ("CaIPERS"). This plan will apply to individuals whc
are laterally hired into fire classifications in the City after t
he effective date of the CaIPER:
contract amendment, and will consist of a benefit formula of 2% at age 50 with a final com-
pensation measurement period of the average of three (3) consecutive years, and with the
employee paying the full required member contribution; and
WHEREAS, without this amendment, individuals hired into the City's fire service after
ed he 20have recent 13 who
forma a of 3% at age 50; and a prior employer will be
afforded tcurrent pension bene
WHEREAS, CaIPERS has also approved a
categorical exemption of the newly -
created positions
fCouncil
Aide
Council inl and i t !s
memberhipwhichalso requires an amendment tothe City's contract CaIPERSand
WHEREAS, the City Council is required to enact an ordinance that will take effect pri-
or to December 31, 2012 in order to effectuate the above-described amendments to the
City'
contract with CaIPERS. Without the amendment to the Fire Safety Plan, the provi-
vsionr of oid due toachannges nOU � the retiremeorth a nt law that take effect Ionser in that January 1 Plan wit
11 be null and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES OR-
DAIN AS FOLLOWS:
SECTION 1.
An amendment to the contract between the City of Anaheim and the Board of Admin-
istration, California Public Employees' Retirement System is hereby authorized, a copy of
said amendment being attached hereto, designated "Exhibit A," and by this reference
made a part hereof as though set out in full.
SECTION 2.
The Mayor of the City of Anaheim is hereby authorized, empowered, and directed to
execute said amendment for and on behalf of the City.
SECTION 3.
The City Council declares that this ordinance is necessary as an emergency meas-
ure for the immediate preservation of the public peace, health or safety pursuant to Section
65858(a) of the California Government Code and Section 511 of the Anaheim City Charter,
and that the reasons for its urgency are as follows:
1. The City, like public agencies across the country, has been facing budget shortag-
es and fiscal challenges. The contributions required to fund the City's retirement plans
represent the largest expense associated with the City's personnel costs, and are a major
contributor to the City's future contingent liability. The City has an opportunity to reduce
pension costs in two respects. However, to do so, it must enact an ordinance amending its
tcontract with he pension laws that will take rto December
on January 1?2013ause of the State statutes reforming
2. It is in the City's interest to amend its contract with CaIPERS to exclude persons
in the classifications of City Council Aide 1, City Council Aide Il, and Senior Policy Aide
hired on or after the date the contract is amended from the retirement system. Additional-
ly, it is in the City's interest to amend the CaIPERS contract to set the formula for all local
fire members entering membership for the first time in the City's fire classification after the
effective date of that amendment at 2% at age 50, with benefits being calculated based on
an average over three years of service. CaIPERS has incorporated both modifications into
the current proposed contract amendment. If the change to the Fire Safety Plan is not
made before December 31, 2012, fire personnel who are hired from another CALIPERS
member agency will be entitled to participate in the City's CALPERS retirement system un-
der a formula of 3% at age 50.
3.Amending the City's contract with CALIPERS to effectuate the changes set forth
above is expected to result in significant future cost savings to the City. it will also furthei
the lilcommensurate with their positions.
postionss who will be affected by the
changes atbenefit levels
4. CaIPERS did not agree to or formulate the proposed amendment to its contrac
with theCity until mid-November 2012. Due to the City Council's meeting schedule in Nc
vember and December 2012, readings
it was not possible to put this ordinance on the Council's rK
ular and second
me to have the ordinance take effec
before December 31, 2012. Ac o d ngly, th sorordinance t
e sbeing passed as an urgency o
dinance.
SECTION 4.
This ordinance shall take effect immediately as an urgency measure pursuant to Ca
fornia Government Code Section 65858.
SECTION 5.
The City Council of the City of Anaheim hereby declares that should any sectio
paragraph, sentence or word of this ordinance of the Code, hereby adopted, be declare
for any reason to be invalid, it is the intent of the Council that it would have passed all oth
portions of this ordinance independent of the elimination herefrom of any such portion
may be declared invalid.
THE FOREGOING ORDINANCE is approved and adopted by the City Council of !
City of Anaheim this 18th day of December 2012.
AYES: Council Members Brandman, Eastman, Kring and Murray
NOES: Mayor Tait
ABSENT:
ABSTAIN: CITY OF ANAHEIM
/s/TomTait
MAYOR OF THE CITY OF ANAHEIM
ATTEST:
Isl Linda N. Andal �� �iry nG nrJnNFlnn