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 Emeryville
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 August 16, 1975, and witnessed August 4, 1975, and as amended effective March 1, 1977, January 1, 1978, March 1, 1978, June 16, 1979, September 1, 1979, July 22, 1993, September 16, 2001, May 16, 2002, July 1, 2005, January 1, 2007, June 16, 2012, July 1, 2017, and February 1, 2019, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 20 are hereby stricken from said contract as executed effective February 1, 2019, and hereby replaced by the following paragraphs numbered 1 through 24 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 classic local miscellaneous members entering membership in the miscellaneous classification on or prior to January 1, 2012, age 60 for classic local miscellaneous members entering membership for the first time in the miscellaneous classification after January 1, 2012, age 62 for new local miscellaneous members, age 50 for classic local fire members, age 55 for classic local police members, and age 57 for new local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from and after August 16, 1975, 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 (CalPERS) and its trustees, agents and employees, the CaPERS 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 attorney 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-CalPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees or their
representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than CaPERS 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.
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); Local Police Officers (herein referred to as local safety members); Employees other than local safety members (herein referred to as local miscellaneous members).
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. ALL EMPLOYEES WHO FIRST ENTERED PUBLIC AGENCY
SERVICE PRIOR TO AUGUST 16, 1975, IN WHICH SERVICE
THEY WERE PARTICIPANTS UNDER PUBLIC AGENCY'S
PENSION PLAN FOR CIVIL SERVICE MISCELLANEOUS
EMPLOYEES ESTABLISHED BY ORDINANCE NO. 527, CITY
COUNCIL, CITY OF EMERYVILLE EFFECTIVE OCTOBER 1,
1966. SUCH EXCLUSION SHALL APPLY TO SUCH EMPLOYEES
WHETHER OR NOT THEY ARE EMPLOYEES ON AUGUST 16,
1975.
6. The accumulated contributions, assets and liability for prior and current service with respect to local miscellaneous members were merged pursuant to Section 20508 into the Management of Emeryville Services Authority.
Such merger occurred on September 1, 1999.
This contract shall be a continuation of the contract of the Management of Emeryville Services Authority, hereinafter referred to as "Former Agency".
The accumulated contributions, assets and liability for prior and current service under the Former Agency's contract shall be merged pursuant to Section 20508 of the Government Code. Such merger occurred effective, as of the effective date of this amendment to contract.
Benefits payable to former employees of public agency who retired or who left their contributions on deposit with the Board under the terminated contract between the Town of Emeryville and the Board shall not be changed by this agreement.
9. Service performed by former employees who left their contributions on deposit with the Public Employees' Retirement System which service was not credited under the terminated contract between the Town of Emeryville and the Board shall be treated as prior service (as defined) under this agreement, provided contributions for current service under such terminated contract which were left on deposit are not withdrawn.
10. Benefits payable to safety members who were retired under the local system, with respect to whom assets are transferred pursuant to paragraph 9 herein, shall not be changed by this agreement.
11. Assets heretofore accumulated with respect to active safety members who were members in the local retirement system established under Ordinance No. 526, City Council, City of Emeryville, effective October 1, 1966, have been transferred to the Public Employees' Retirement System on March 1, 1977, and applied against the liability for prior service incurred thereunder.
That portion of the assets so transferred which represent the accumulated contributions (plus interest thereof) required of the employees under said local system has been credited to the individual membership account of each such employee under the Public Employees' Retirement System.
12. Assets heretofore accumulated with respect to retired safety members in the local system have been transferred to the Public Employees' Retirement System on December 31, 1977, and applied against the liability for prior service incurred hereunder.
13. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member entering membership in the miscellaneous classification on or prior to January 1; 2012, shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Supplemental to Federal Social Security).
14. The percentage of final compensation to be provided for each year of credited current service as a classic local miscellaneous member entering membership in the miscellaneous classification for the first time after January 1, 2012, shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Supplemental to Federal Social Security).
15. The percentage of final compensation to be provided for each year of credited prior and current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Supplemental to Federal Social Security).
16. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local fire member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full).
17. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local police member shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full).
18. The percentage of final compensation to be provided for each year of credited prior and current service as a new local safety member shall be determined in accordance with Section 7522.25(d) of said Retirement Law (2.7% at age 57 Full).
19. Public Agency elected and elects to be subject to the following optional provisions:
a. Section 20042 (One-Year Final Compensation) for classic local fire members, for those classic local police members entering membership on or prior to June 16, 2012, and for those classic local miscellaneous members entering membership on or prior to January 1, 2012.
b. Sections 21624 and 21626 (Post-Retirement Survivor Allowance).
C. Section 21572 (Increased Level of 1959 Survivor Benefits) for local police members only.
Section 20965 (Credit for Unused Sick Leave).
e. Section 20903 (Two Years Additional Service Credit) for local fire members only.
f. Section 21024 (Military Service Credit as Public Service) for local safety members only.
g. Section 21574.5 (Indexed Level of 1959 Survivor Benefits) for local fire members only.
Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21362.2 (3% @ 50 Full formula) for classic local fire members.
From and after January 1, 2007, the classic local fire employees of Public Agency shall be assessed an additional 3% of their compensation for a total contribution rate of 12% pursuant to Government Code Section 20516.
Section 20516 (Employees Sharing Cost of Additional Benefits):
From and after June 16, 2012, and until February 1, 2019, Section 21363.1 (3% @ 55 Full formula) for classic local police members.
The employee cost sharing contributions are not to exceed 3%. The maximum employee cost sharing contribution is the normal cost plus the increase in the accrued liability due to the benefit improvement amortized over 20 years. In no event shall the employee cost sharing contribution attributable to the unfunded liability remain in effect beyond September 16, 2021. Thereafter, in any given contribution year, the maximum employee cost sharing contribution cannot exceed 1.309% of payroll.
i. Section 20475 (Different Level of Benefits):
Section 21353(2% @ 60 Full formula) and Section 20037 (Three- Year Final Compensation) are applicable to classic local miscellaneous members entering membership for the first time with this agency in the miscellaneous classification after January 1, 2012.
Section 20037 (Three-Year Final Compensation) is applicable to classic local police members entering membership for the first time with this agency in the police classification after June 16, 2012. j. Section 20516 (Employees Sharing Additional Cost):
From July 1, 2017, and until February 1, 2019, 4% for classic local police members.
From and after February 1, 2019, 5% for classic local police members.
The portion of the employer's contribution that the member agrees to contribute from his or her compensation, over and above the member's normal contribution ("Cost Sharing Percentage"), shall not exceed the Employer Normal Cost Rate, as that rate is defined in the CaPERS Actuarial Valuation for the relevant fiscal year. If the Cost Sharing Percentage will exceed the relevant Employer Normal Cost Rate, the Cost Sharing Percentage shall automatically be reduced to an amount equal to, and not to exceed, the Employer Normal Cost Rate for the relevant fiscal year.
20. Public Agency, in accordance with Government Code Section 20834, shall not be considered an "employer" for purposes of the Public Employees' • Retirement Law. Contributions of the Public Agency shall be fixed and determined as provided in Government Code Section 20834, and such contributions hereafter made shall be held by the Board as provided in Government Code Section 20834.
21. 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.
22. Public Agency shall also contribute to said Retirement System as follows:
a. 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.
b. 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.
23. 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.
24. 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
BOARD OF ADMINISTRATION CITY COUNCIL
M918.
BY
MELODY BENAVIDES CHIEF PRESIDING ORFICER
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DO/ISION PLEASE DO
PUBLIC EMRLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaPERS ID #1644815312
PERS-CON-702A