California
Public Employees’ Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees’ Retirement System
and the
City Council
City of Fremont
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 April 1, 1958, and witnessed January 28, 1958, and as amended effective July 1, 1959, August 1, 19 61, October 1, 1964, May 16, 1969, September 16, 1977, February 1, 1979, December 16, 1979, Jul y 1, 1981, Jul y 1, 1982, July 1, 1984, January 1, 1985, July 1, 1987, November 1, 1989, January 1, 1998, June 17, 2001, July 29, 2001, August 11, 2002, December 18, 2011, April 8, 2012, December 6, 2013, Jun e 15, 2014, July 10, 2016, November 12, 2017, and December 8, 2019, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 19 are hereby stricken from said contract as executed, effective December 8, 2019, and hereby replaced by the following paragraphs numbered 1 through 19 inclusive:
1. A
ll 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 April 8, 2012, age 60 for classic local miscellaneous members entering membership for the first time in the miscellaneous classification after April 8, 2012, age 62 for new local miscellaneous members, age 50 for classic local safety members entering membership in the safety classification on or prior to April 8, 2012, age 55 for classic local safety members entering membership for the first time in the safety classification after April 8, 2012, and age 57 for new local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from and after April 1, 1958, 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 CalPERS 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 CalPERS 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.
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);
1. Local Police Officers shall include individuals defined by Section 20425 of the Government Code prior to its amendment at the 1975-76 Regular Legislative Session, effective January 1, 1976, employed by Public Agency prior to such amendment.
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 GUARD.
6. Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or seasonal basis not to exceed 6 months were excluded from PERS membership by contract. Government Code Section 20336 superseded this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 1, 1994.
7. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member in employment before and not on or after August 11, 2002, 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 classic local miscellaneous member in employment on or after August 11, 2002, and not entering membership for the first time in the miscellaneous classification after April 8, 2012, shall be determined in accordance with Section 21354.4 of said Retirement Law (2.5% at age 55 Full).
9. The percentage of final compensation to be provided for each year of credited current service as a classic local miscellaneous member entering membership for the first time in the miscellaneous classification after April 8, 2012, shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full).
10. 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 Full).
11. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local safety member entering membership in the safety classification on or prior to April 8, 2012, shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full).
12. The percentage of final compensation to be provided for each year of credited current service as a classic local safety member entering membership for the first time in the safety classification after April 8, 2012, shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full).
13. 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).
14. Public Agency elected and elects to be subject to the following optional provisions:
a. Section 20425 ("Local Police Officer" shall include persons assigned to identification and communication duties in the Police Department who were not classified as local safety members and who were in such employment on or prior to August 4, 1972, and who elected to be local safety members on or before September 28, 1973).
b. Section 21024 (Military Service Credit as Public Service).
c. Section 20042 (One- Year Final Compensation) for those classic local miscellaneous members and those classic local safety members entering membership on or prior to April 8, 2012.
d. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 20042 (One- Year Final Compensation) for local police members.
From and after December 16, 1979, until July 1, 1981, the classic police employees of Public Agency shall be assessed an additional
1.250% of their compensation pursuant to Government Code Section 20516.
Section 21362.2 (3% @ 50 Full Formula) effective June 17, 2001, and Section 21363.1 (3% @ 55 Full Formula) for classic local fire members.
The employee cost sharing contributions are not to exceed 5.8 %.
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 June 17, 2021 . Thereafter, in any given contribution year, the maximum employee cost sharing contribution cannot exceed 4.586% of payroll.
e. Section 20965 (Credit for Unused Sick Leave) for local safety members only.
f. Section 21574 (Fourth Level of 1959 Survivor Benefits).
g. Section 21335 (3% Cost -of-Living Allowance, base year 1999) for those local miscellaneous members entering membership on or prior to April 8, 2012.
h. Section 20475 (Different Level of Benefits): Section 21353 (2% @ 60 Full formula), Section 20037 (Three- Year Final Compensation) and Section 21329 (2% Annual Cost -of-Living Allowance Increase) are applicable to classic local miscellaneous members entering membership for the first time with this agency in the miscellaneous classification after April 8, 2012.
i. Section 20516 (Employees Sharing Additional Cost):
From and after June 15, 2014, and until the effective date of this amendment to contract, .75% for new local fire members.
From and after July 10, 2016, 3% for classic local police members.
From and after June 10, 2016, and until the effective date of this amendment to contract, .75% for new local police members.
From and after the effective date of this amendment to contract , .25% for new local fire members.
From and after the effective date of this amendment to contract , .25% for new 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 CalPERS 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.
j. Section 21548 (Pre- Retirement Option 2W Death Benefit) for service credit accumulated on and after November 12, 2017, for local police members only.
15. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on September 16, 1977. 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.
16. 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.
17. 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.
18. 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.
19. 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 _____ day of _______________, ______.
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CITY OF FREMONT
BY____________________________________ BY______________________________
MELODY BENAVIDES, CHIEF PRESIDING OFFICER
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
________________________________
Witness Date
Attest:
________________________________
Clerk
AMENDMENT CalPERS ID #2378859287
PERS-CON-702A