RESOLUTION NO. 2022-063
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA, AUTHORIZING RETIREMENT PLAN CONTRIBUTIONS FOR NON-PERS CITY COUNCIL MEMBERS WHEREAS, the City of Fontana is a general law city subject to Government Code section 36516 which establishes limits on the salary that may be paid to members of a city council; and WHEREAS, paragraph (d) of Government Code section 36516 provides that any amounts paid by the City for “retirement . . . benefits shall not be included for purposes of determining salary under [section 36516], provided the same benefits are available and paid by the city for its employees”; and WHEREAS, the City contracts with the California Public Employees’ Retirement System (“CalPERS”) to provide retirement benefits to City employees, including members of the City Council, that are eligible to participate in CalPERS; and WHEREAS, the City is required to make a normal cost contribution to CalPERS on behalf of all participating employees for each pay period that includes at least one day that the employee is enrolled in CalPERS under the City’s contract; and WHEREAS, the employer normal cost contribution is different for miscellaneous and safety members, and is set on a fiscal year basis by CalPERS; and WHEREAS, to the extent that members of the City Council participate in CalPERS under the City’s contract, they are classified as miscellaneous members; and WHEREAS, members of the City Council that are CalPERS retired annuitants or that participate in CalPERS through another employer as a result of their full-time employment with such other employer do not participate in CalPERS under the City’s contract (“Non-PERS City Council Members”); and WHEREAS, Non-PERS City Council Members do not receive the employer normal cost contribution that is paid by the City on behalf of all other miscellaneous employees, including members of the City Council, that participate in CalPERS under the City’s contract; and WHEREAS, the City previously established the City of Fontana 401(a) Money Purchase Plan (“401(a) Plan”) for the benefit of eligible employees; and WHEREAS, the City Council wishes to authorize a contribution equal to the employer normal cost contribution that the City makes on behalf of miscellaneous members to CalPERS to be made to the 401(a) Plan on behalf of Non-PERS City Council Members; and WHEREAS, Government Code section 36516.5 provides that any change in compensation, which includes the authorization of retirement contributions not otherwise required by law, shall not become effective until one or more members of the city council begin a new term of office.
NOW THEREFORE, BE IT RESOLVED, declared, determined and ordered by the City Council of the City of Fontana, California, as follows:
Section 1. In accordance with Government Code section 36516(d), the City shall make a contribution to the 401(a) Plan on behalf of Non-PERS City Council Members equal to employer normal cost contribution that the City makes on behalf of miscellaneous members to CalPERS (“Contribution”).
Section 2. The Contribution shall be made periodically at the same time that the City makes its normal cost contributions to CalPERS.
Section 3. The City Manager is hereby authorized to make any necessary amendments to the 401(a) Plan to accommodate the Contributions authorized pursuant to this Resolution.
Section 4. In accordance with Government Code section 36516.5, this Resolution shall be effective on the date that one or more members of the City Council begin a new term of office.
APPROVED AND ADOPTED this 12th day of July 2022.
READ AND APPROVED AS TO LEGAL FORM:
__________________________
City Attorney
I, Germaine McClellan Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting thereof, held on the 12th day of July, by the following vote to wit:
AYES:
NOES:
ABSENT:
__________________________
City Clerk of the City of Fontana
__________________________
Mayor of the City of Fontana
ATTEST:
__________________________
City Clerk
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