CITY COUNCIL STAFF REPORT
December 5, 2023 {{section.number}}c
ADOPTION OF A RESOLUTION “AUTHORIZING A CORRECTION TO THE AMENDMENT TO
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF CORONADO” RECOMMENDATION:
Adopt the Resolution authorizing a correction to the amendment to the contract between the Board of Administration California Public Employees’ Retirement System (CalPERS) and the City of Coronado.
BACKGROUND:
The City entered into a contract with CalPERS for retirement benefits effective January 1, 1949.
In the process of amending the CalPERS contract to increase 1959 Survivor Benefits, as introduced in the November 7, 2023 City Council Meeting, CalPERS identified an error in the City’s CalPERS contract amendment that was effective September 16, 2000.
The 1959 Survivor Benefit provides a monthly allowance to eligible survivors of members who were covered for this benefit program and died before retirement. This benefit coverage is available for those members who are not covered by federal Social Security (City of Coronado local safety members only).
In the contract amendment effective September 16, 2000, the City added Section 20042 (OneYear Final Compensation) for miscellaneous members. This changed number 7. b. by removing “for local safety members only” for the one-year final compensation. The contract erroneously removed “for local safety members only” from 7. a. for Section 21572 (Increased Level of 1959 Survivor Benefits) which only applies to safety members and not miscellaneous. This administrative typo has been included within subsequent amendments that have occurred since September 16, 2000.
Previous Contract Amendment Effective June 18,1999:
7. Public Agency elected and elects to be subject to the following optional provisions:
a. Section 21572 (Increased Level of 1959 Survivor Benefits) for local safety members only.
b. Section 20042 (One-Year Final Compensation) for local safety members only.
Contract Amendment Effective September 16, 2000:
7. Public Agency elected and elects to be subject to the following optional provisions:
a. Section 21572 (Increased Level of 1959 Survivor Benefits). b. Section 20042 (One-Year Final Compensation).
As noted, the contract amendment effective September 16, 2000 mistakenly removed “for local safety members only” from 7.a. Section 21572. This benefit applies only to safety members, miscellaneous members are not eligible.
ANALYSIS:
Staff proposes updating our contract with CalPERS to reflect the original intent and cure the prior administrative error. This is an administrative change only and CalPERS has confirmed there is no impact to City of Coronado members. The 1959 Survivor Benefits only apply to safety members and not miscellaneous. No benefits have been issued to miscellaneous members. If approved by City Council, the change would be processed by CalPERS with a tentative effective date of January 13, 2024.
FISCAL IMPACT:
There is no fiscal impact.
ALTERNATIVE:
City Council may choose not to adopt the resolution to correct the CalPERS contract.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Not Applicable.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Resolution No. 2023-44
Submitted By: City Manager’s Office / Tony Winney