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RES-2009-103 RESOLUTION NO. 2009R- 103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GIVING NOTICE OF ITS INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF ANAHEIM 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 amendment to said Law; and WHEREAS, the City of Anaheim has previously entered into a contract with the Board of Administration of the Public Employees' Retirement System, dated July 25, 1950, and effective September 1, 1950, which contract has been amended on several previous occasions; and WHEREAS, one of the steps in the procedures to amend the above - mentioned contract is the adoption by the City Council of a resolution giving notice of its intention to approve an amendment to the contract, which resolution shall contain a summary of the change or changes proposed in the contract; and WHEREAS, the following is a statement of the proposed change relating to Section 20516 (Employees Sharing Cost of Additional Benefits): Section 21362.2 (3% @ Full formula). From and after June 18, 2004 and until July 10, 2009, 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. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Anaheim does hereby give notice of its intention to approve said amendment to the contract between the City of Anaheim and the Board of Administration of the Public Employees' Retirement System, a copy of which amendment is attached hereto as "Exhibit A" and by this reference made a part hereof. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 23rd day of June, 2009, by the following roll call vote: AYES: Mayor Pringle, Council Members Hernandez, Sidhu, Galloway, Kring NOES: NCNE ABSENT: NONE ABSTAIN: Mp_ CTTY OF HEIM By MAYOR OF THE CIT F AHEIM ATTEST:' / CITY ERK OF THE CITY OF A AHEIM APPROVED AS TO FORM: CRISTINA L. TALLEY, CITY ATTORNEY By: % Gad Ar 1 ( ristina L. Talley City Attorney 73087.1 Ca1PERS 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 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 15 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 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 Califomia 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, 1956; 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; AND c. POLICE CADETS HIRED ON OR AFTER JANUARY 1, 1975. 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 January 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 focal 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 safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 10. 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). 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 Govemment Code Section 20431). h. Section 20503 (To Remove the Exclusion of "Management Intern ", Prospectively from May 24, 1991). i. Section 21024 (Military Service Credit as Public Service), j. Section 21574 (Fourth Level of 1959 Survivor Benefits), k. Section 21548 (Pre- Retirement Option 2W Death Benefit). 1. Section 21623.5 ($5,000 Retired Death Benefit). m. Section 20516 (Employees Sharing Cost of Additional Benefits); Section 21362.2 (3% © 50 Full formula). From and after June 18, 2004 and until July 10, 2009 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. 11. 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 Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 12. 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. 13. 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 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. 14. 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. 15. 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 Tess 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 day of • BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ANAHEIM BY BY LORI MCGARTLAND, CHIEF PRESIDING OFFICER EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk AMENDMENT ER# 0303 PERS - CON -702A (Rev. 10 \05)