Resolution No. 86052
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WON
RESOLUTION NO. 8605
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON DECLARING ITS INTENTION TO APPROVE AN
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY
OF VERNON
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 public agencies may elect to subject
themselves and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this
contract is the adoption by the governing body of the public agency of
a resolution giving notice of its intention to approve an amendment to
said contract, which resolution shall contain a summary of the change
proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide for a New Safety Category pursuant to
Section 20423.6 (Prosecutors, Public Defenders, and
Public Defender Investigators as "Local Safety
Members") with Section 21363.1 (3% @ 55 Full
formula); Section 20042 (One -Year Final
Compensation); Section 21024 (Military Service
Credit as Public Service); Sections 21624, 21626
and 21628 (Post -Retirement Survivor Allowance) and
Section 21573 (Third Level of 1959 Survivor
Benefits) for local safety members.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon does
hereby give notice of its intention to approve an amendment to the
contract between the City Council of the City of Vernon and the Board
of Administration of the Public Employees' Retirement System, a copy
of said amendment being attached hereto, as an "Exhibit" and by this
reference made a part hereof.
SECTION 2: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send a certified copy of
this resolution together with a completed "Certification of Governing
Body's Action," "Certification of Compliance with Government Code
Section 7507" and "Certification of Employee Election" to:
Danielle Brooks
Employer Representative
Public Agency Contract Services
CalPers Actuarial & Employer Services Division
P.O. Box 942709
Sacramento, CA 94229-2709
SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 1st day of December, 2004.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
(LEONIS C. MAL`BURG, Mayor
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8605, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, December 1,
2004, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
- 3 -
EXHIBIT
0
A#%,o�,
Ca1PERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Vernon
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
November 1, 1948, and witnessed October 23, 1948, and as amended effective April 1,
1956, October 1, 1960, July 1, 1966, October 1, 1972, May 1, 1974, November 1, 1975,
December 1, 1976, March 1, 1979, July 6, 1986, October 17, 1986, September 7, 1990,
January 19, 1991, September 21, 1991, December 24, 1993, October 30, 1994, July 18,
1997 and June 30, 2002 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective June 30, 2002, and hereby replaced by the following paragraphs
numbered 1 through 14 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 local prosecutors and
age 50 for local police and local fire members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after November 1, 1948 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. 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. Local Prosecutors (included as local safety members);
d. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. 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:
NO ADDITIONAL EXCLUSIONS
5. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member shall
be determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local fire member shall be
determined in accordance with Section 21362 of said Retirement Law (2%
at age 50 Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local prosecutor shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for local
police members only.
b. Sections 21624, 21626 and 21628 (Post -Retirement Survivor
Allowance).
C. Section 21024 (Military Service Credit as Public Service), Statutes
of 1974.
d. Section 20042 (One -Year Final Compensation).
e. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members; local fire members and local prosecutors
only.
f. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit) for local miscellaneous members and local fire members
only.
g. Section 20423.6 ("Local Safety Member" shall include local
prosecutors, local public defenders, and local public defender
investigators as described in Government Code Section 20423.6).
10. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
November 1, 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.
11. 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.
12. 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 21573 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; local fire members and local
prosecutors.
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.
13. 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.
14. 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.
♦�4 i.
qA,
B. This amendment shall be effectiveAn, h e day of ,
BOARD OF ADMINISTRATION ``,``�, CITY COUNCIL
PUBLIC EMPLOYEES' RETIRE ENT SYSTEM CITY OF VERNON
BY BY
KENNETH W. MARZION, CHIEF PRESIDING OFFI
ACTUARIAL & EMPLOYER SERVICES DIVISION ,°.`
PUBLIC EMPLOYEES' RETIREMENT SYSTEM:)
Witness Date
Attest:
Clerk
AMENDMENT ER# 0209
PERS-CON-702A (Rev. 8\02)
SUPPORTING
DOCUMENTS
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
hereby certify that in accordance with Section 7507 of the Government Code
the future annual costs as determined by the System Actuary and/or the increase
in retirement benefit(s) have been made public at a public meeting of the
Ci ty of the
(governing body)
Citv of Vernon
(public agency)
on Dg-C- mb r 15, 2004 which is at least two weeks prior to the adoption of the
(date)
Resolution / Ordinance.
-Deputv City Clerk
Title
Date December 7, 200
PERS-CON-12A (rev. 1/96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
r.; rV��Rmincii of the
(governing body)
City of Vernon
(public agency)
on December 1, 2004
(date)
LAVIN)sTwwe,
J,�•
Deputy City Clerk
Title
PERS-CON-12 (rev. 1/96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF EMPLOYEE ELECTION
hereby certify that the following employees of the City of Vernon have expressed their
approval or disapproval of said agency's participation in the California Public Employees'
Retirement System on the basis described in the Resolution of Intention adopted by said
agency's governing body on t in such manner as
to permit each employee to separately and secretly express his choice and that the
outcome of such election was as follows:
Local Prosecutors as
defined in Govt. Code
Section 20423.6
Number of
employees
eligible to vote
3
Number of votes
approving said
participation
j
Clerk or Secretff `
Date
Number of votes
disapproving said
participation
(New Agency/Adding a Category)
PERS-CON-15N (Rev. 9/03)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
EMPLOYEE BALLOT
Safety Member Group
City of Vernon
The City Council of the City of Vernon shall not include in the contract with the Board of
Administration of the California Public Employees' Retirement System any group if a
majority of its members vote to disapprove the proposed plan. (Government Code
Section 20470)
The proposed plan is described in Exhibit A of the City of Vernon's Resolution of
Intention to Contract with CaIPERS and is outlined in the attached Summary of Major
Provisions.
YES
Do you approve the proposed plan?
NO
(New Agency/Adding a Category)
(Rev. 4/02)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
(888) CalPERS (225-7377)
SUMMARY OF MAJOR PROVISIONS
3% @ 55 Formula (Section 21363.1)
Local Safety Members
SERVICE RETIREMENT
To be eligible for service retirement, a member must be at least age 50 and have five years of
CalPERS credited service. If provided by the employer's contract, mandatory retirement age for
local safety members is age 60.
The monthly retirement allowance is determined by age at retirement, years of service credit and
final compensation. The basic benefit is 3% of final compensation for each year of credited
service upon retirement at age 55. If retirement is earlier than age 55, the percentage of final
compensation decreases for each quarter year of attained age to 2.40% at age 50. The allowance
is limited to 90% of final compensation.
Final compensation is the average monthly pay rate during the last consecutive 36 months of
employment, or 12 months if provided by the employer's contract, unless the member designates a
different period of 36 or 12 consecutive months when the average pay rate was higher. Certain
items of special compensation earned during your final compensation period will be included in
your final compensation, in accordance with Board regulations.
DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties are eligible for disability
retirement provided they have at least five years of service credit. The monthly retirement
allowance is 1.8% of final compensation for each year of service. The maximum percentage for
members who have between 10.000 and 18.518 years of service credit is one-third of their final
compensation. If the member is eligible for service retirement the member will receive the highest
allowance payable, service or disability. If provided by the employer's contract, the benefit would
be a minimum of 30% of final compensation for the first five years of service credit, plus 1 % for
each additional year of service to a maximum benefit of 50% of final compensation.
INDUSTRIAL DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties as a result of a job -related injury
or illness may receive 50% of their final compensation (or more by additional contract provisions).
The industrial disability retirement allowance for members who entered membership in a safety
category after January 1, 1980, cannot exceed the amount that would be payable for a service
retirement if employment had continued to age 55. This limit may not apply if the member was
disabled because of a direct violent act upon their person or as a result of hazardous and
dangerous duty required for the position. If the member is eligible for service retirement, the
service retirement allowance is payable if greater than the industrial disability retirement allowance.
PRE -RETIREMENT DEATH BENEFITS
Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up to
six months' pay (one month's salary rate for each year of current service to a maximum of six
months).
PERS-CON-53 (rev. 1/02)
1957 Survivor Benefit: An eligible beneficiary may elect to receive either the Basic Death Benefit or
the 1957 Survivor Benefit. The 1957 Survivor Benefit provides a monthly allowance equal to one-
half of the highest service retirement allowance the member would have received had he/she
retired on the date of death. The 1957 Survivor Benefit is payable to the surviving spouse until
death or to eligible unmarried children until age 18.
1959 Survivor Benefit: (If provided by the employer's contract and the member is not covered
under social security). A surviving spouse and eligible children may receive a monthly allowance
as determine by the level of coverage. This benefit is payable in addition to the Basic Death
Benefit or 1957 Survivor Benefit. Children are eligible if under age 22 and unmarried.
Pre -Retirement Optional Settlement 2 Death Benefit: (If provided by the employer's contract.) The
spouse of a deceased member, who was eligible to retire for service at the time of death, may to
elect to receive the Pre -Retirement Optional Settlement 2 Death Benefit in lieu of the lump sum
Basic Death Benefit. The benefit is a monthly allowance equal to the amount the member would
have received if he/she had retired for service on the date of death and elected Optional
Settlement 2, the highest monthly allowance a member can leave a spouse.
Special Death Benefit: A surviving spouse or eligible children may receive a monthly allowance
equal to one-half of the final compensation. If the cause of death is due to external violence or
physical force while on the job, and there are eligible surviving children in addition to a spouse, the
allowance may be increased to a maximum of 75%.
COST -OF -LIVING ADJUSTMENTS
The cost of living allowance increases. are limited to a maximum of 2% compounded annually
unless the employer's contract provides a 3, 4, or 5% increase.
DEATH AFTER RETIREMENT
The lump sum death benefit is $500 (or $600, $2,000, $3,000, $4,000 or $5,000 if provided by the
employer's contract) regardless of the retirement plan chosen by the member at the time of
retirement.
TERMINATION OF EMPLOYMENT
Members who have separated from employment may elect to leave their contributions on deposit
or request a refund of contributions and interest. Those who leave their contributions on deposit
may apply at a later date for a monthly retirement allowance if the minimum service and age
requirements are met. Members who request a refund of their contributions terminate their
membership and are not eligible for any future benefits unless they return to CalPERS
membership.
EMPLOYEE CONTRIBUTIONS
Local safety members covered by the 3% @ 55 formula contribute 9% of reportable earnings.
Those covered under a modified formula (coordinated with Social Security) do not contribute on
the first $133.33 earned.
The employer also contributes toward the cost of the benefits. The amount contributed by the
employer for current service retirement benefits generally exceeds the cost to the employee. In
addition, the employer bears the entire cost of prior service benefits (the period of time before the
employer provided retirement coverage under CaIPERS). All employer contribution rates are
subject to adjustment by the CalPERS Board of Administration.
PERS-CON-53 (rev. 1/02)
CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES)§
CITY OF VERNON )
I, Gloria Molleda, Deputy City Clerk of the City of
Vernon, County of Los Angeles, State of California., do
hereby certify that the attached is a true and correct
original of Resolution No. 8605, entitled:
Resolution No. 8605 - A Resolution of the City
Council of the City of Vernon Declaring Its
Intention to Approve an Amendment to the
Contract Between the Board of Administration of
the California Public Employees' Retirement
System and the City Council of the City of
Vernon.
IN WITNESS HEREOF, I have hereunto set my hand and
affixed the Official Seal of the City of Vernon, County of
Los Angeles, State of California, this 8th day of December
2004.
SEAL:
Gloria Molleda
Deputy City Clerk
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
EMPLOYEE BALLOT
Safety Member Group
City of Vernon
The City Council of the City of Vernon shall not include in the contract with the Board of
Administration of the California Public Employees' Retirement System any group if a
majority of its members vote to disapprove the proposed plan. (Government Code
Section 20470)
The proposed plan is described in Exhibit A of the City of Vernon's Resolution of
Intention to Contract with CaIPERS and is outlined in the attached Summary of Major
Provisions. I
YES
Do you approve the proposed plan?
NO [ J
(New Agency/Adding a Category)
(Rev. 4/02)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
(888) CalPERS (225-7377)
SUMMARY OF MAJOR PROVISIONS
3% @ 55 Formula (Section 21363.1)
Local Safety Members
SERVICE RETIREMENT
To be eligible for service retirement, a member must be at least age 50 and have five years of
CalPERS credited service. If provided by the employer's contract, mandatory retirement age for
local safety members is age 60.
The monthly retirement allowance is determined by age at retirement, years of service credit and
final compensation. The basic benefit is 3% of final compensation for each year of credited
service upon retirement at age 55. If retirement is earlier than age 55, the percentage of final
compensation decreases for each quarter year of attained age to 2.40% at age 50. The allowance
is limited to 90% of final compensation.
Final compensation is the average monthly pay rate during the last consecutive 36 months of
employment, or 12 months if provided by the employer's contract, unless the member designates a
different period of 36 or 12 consecutive months when the average pay rate was higher. Certain
items of special compensation earned during your final compensation period will be included in
your final compensation, in accordance with Board regulations.
DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties are eligible for disability
retirement provided they have at least five years of service credit. The monthly retirement
allowance is 1.8% of final compensation for each year of service. The maximum percentage for
members who have between 10.000 and 18.518 years of service credit is one-third of their final
compensation. If the member is eligible for service retirement the member will receive the highest
allowance payable, service or disability. If provided by the employer's contract, the benefit would
be a minimum of 30% of final compensation for the first five years of service credit, plus 1 % for
each additional year of service to a maximum benefit of 50% of final compensation.
INDUSTRIAL DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties as a result of a job -related injury
or illness may receive 50% of their final compensation (or more by additional contract provisions).
The industrial disability retirement allowance for members who entered membership in a safety
category after January 1, 1980, cannot exceed the amount that would be payable for a service
retirement if employment had continued to age 55. This limit may not apply if the member was
disabled because of a direct violent act upon their person or as a result of hazardous and
dangerous duty required for the position. If the member is eligible for service retirement, the
service retirement allowance is payable if greater than the industrial disability retirement allowance.
PRE -RETIREMENT DEATH BENEFITS
Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up to
six months' pay (one month's salary rate for each year of current service to a maximum of six
months).
PERS-CON-53 (rev. 1/02)
1957 Survivor Benefit: An eligible beneficiary may elect to receive either the Basic Death Benefit or
the 1957 Survivor Benefit. The 1957 Survivor Benefit provides a monthly allowance equal to one-
half of the highest service retirement allowance the member would have received had he/she
retired on the date of death. The 1957 Survivor Benefit is payable to the surviving spouse until
death or to eligible unmarried children until age 18.
1959 Survivor Benefit: (If provided by the employer's contract and the member is not covered
under social security). A surviving spouse and eligible children may receive a monthly allowance
as determine by the level of coverage. This benefit is payable in addition to the Basic Death
Benefit or 1957 Survivor Benefit. Children are eligible if under age 22 and unmarried.
Pre -Retirement Optional Settlement 2 Death Benefit: (If provided by the employer's contract.) The
spouse of a deceased member, who was eligible to retire for service at the time of death, may to
.elect to receive the Pre -Retirement Optional Settlement 2 Death Benefit in lieu of the lump sum
Basic Death Benefit. The benefit is a monthly allowance equal to the amount the member would
have received if he/she had retired for service on the date of death and elected Optional
Settlement 2, the highest monthly allowance a member can leave a spouse.
Special Death Benefit: A surviving spouse or eligible children may receive a monthly allowance
equal to one-half of the final compensation. If the cause of death is due to external violence or
physical force while on the job, and there are eligible surviving children in addition to a spouse, the
allowance may be increased to a maximum of 75%.
COST -OF -LIVING ADJUSTMENTS
The cost of living allowance increases. are limited to a maximum of 2% compounded annually
unless the employer's contract provides a 3, 4, or 5% increase.
DEATH AFTER RETIREMENT
The lump sum death benefit is $500 (or $600, $2,000, $3,000, $4,000 or $5,000 if provided by the
employer's contract) regardless of the retirement plan chosen by the member at the time of
retirement.
TERMINATION OF EMPLOYMENT
Members who have separated from employment may elect to leave their contributions on deposit
or request a refund of contributions and interest. Those who leave their contributions on deposit
may apply at a later date for a monthly retirement allowance if the minimum service and age
requirements are met. Members who request a refund of their contributions terminate their
membership and are not eligible for any future benefits unless they return to CalPERS
membership.
EMPLOYEE CONTRIBUTIONS
Local safety members covered by the 3% @ 55 formula contribute 9% of reportable earnings.
Those covered under a modified formula (coordinated with Social Security) do not contribute on
the first $133.33 earned.
The employer also contributes toward the cost of the benefits. The amount contributed by the
employer for current service retirement benefits generally exceeds the cost to the employee. In
addition, the employer bears the entire cost of prior service benefits (the period of time before the
employer provided retirement coverage under CaIPERS). All employer contribution rates are
subject to adjustment by the CalPERS Board of Administration.
PERS-CON-53 (rev. 1/02)
4flr-7'_ ion
'ublic Agency, in -the fdllo
ors of said Retiremenf S
as are excluded by law
f
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: November 28 2012
TO: Rory Burnett, Finance Director/City Treasurer
Teresa McAllister, Director of Human Resources
Mark Whitworth, City Administrator/Fire Chief
FROM: Deborah Juarez, Records Management Assistant;,
RE: Resolution No. 2012-192 - Resolution Authorizing a Correction
to the Amendment to Contract to Contract Between the Board of
Administration California Public Employees' Retirement System
and the City Council City of Vernon
Transmitted herewith is a copy of the above -referenced resolution that
was approved by City Council on October 16, 2012, and executed by both
the City of VernonandCalPers.
Thank you.
Attachment
c: Ordinance No. 1104
Resolution No. 8605
Ordinance No. 1144
Resolution Nos. 9524 & 9646
ro
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Pan e1l.Q.3 ro4ks.....CALFTRS..................................
C3
Street, Apt. No.;
-POB-No. p •0.
Box 942704
City, State, ZIP+4
Sacramento, CA 94229-2704
:rr 00.
C
_W, .
4305 Santa Fe.Avenue, Vernon, California 90058
Telephone (323) 583-8811
October 18, 2012
Danielle Brooks, VIA U.S. CERTIFIED MAIL
Employer Representative
California.Public Employees'
Retirement System
P.O. Box 942704
Sacramento, CA 94229-2704
Re: CalPERS Audit Findings #5
Dear Ms. Brooks:
Per your letter dated September 27, 2012, enclosed please find
two partially executed resolutions for the above -referenced
matter adopted by the City Council on October 16, 20.12.
If you have any questions or comments, please contact Kristen
Enomoto at (323) 583-8811 ext. 398.
Yours truly,
Ana Barcia
Deputy City Clerk
AB:em
Enclosures
cc: Mark Whitworth, City Administrator
Nicholas Rodriguez, City Attorney
E,cfusivefy Industriaf
RESOLUTION NO. 2012-192
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
VERNON
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, Ana Barcia, Deputy City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2012-192,
was duly passed, approved and adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Tuesday, October 16, 2012, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this day of October, 2012, at Vernon, California.
Ana rcia, Dep y City Clerk
(SEAL)
G1TY OF:VERNON
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California Public Employees' Retirement System
Customer Account Services Division
P.O. Box 942704
- Sacramento, CA 94229 2704
CalPERS TTY: (916) 795-3240
888 CalPERS (or 888-225-7377) phone (916) 795-3005 fax
www.calpers.ca.gov
September 27, 2012
Ms. Kristen Enomoto
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Dear Ms. Enomoto:
ID # 3431795727
Due to CalPERS audit finding #5, enclosed are two copies of a Resolution authorizing an
amendment to strike the contract dated February 6, 2005.
This will correct CalPERS audit finding #5.
Please return two executed copies of the Resolution. A copy will be returned for your
records after it has been executed by CalPERS.
If you have any questions, please call (888) CalPERS (225-7377).
Sincerely,
Danielle Brooks
Employer Representative
Public Agency Contract Services
Enclosures
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California Public Employees' Retirement System
www.calpers.ca.gov
DATE: . October 11, 2012
TO: Honorable Mayor Pro Tem and City Council
FROM: Mark C. Whitworth, City Administrator
RE: Ca1PERS Correction Resolution
Background
In February 2005, the City amended its contract with the Board of Administration of the
California Public Employees' Retirement System (Ca1PERS) to add the following provision,
which effectively granted city attorneys a safety formula:
"The percentage of final compensation to be provided for each year of credited prior and
current service as a local prosecutor member shall be determined in accordance with
Section 21363.1 of said Retirement Las (3% at age 55 Full)."
Beginning in 2010, Ca1PERS Office of Audit Services conducted a public agency review of the
City of Vernon and issued a report of its findings on April 27, 2012. One of the findings was as
follows:
"The City incorrectly reported attorneys under coverage group 79001, a safety
classification that provides anenhanced retirement benefit formula of 3% @ 55."
In its January 31, 2012 response to the draft report, the City acknowledged that it had received
inaccurate advice regarding the qualifications of city attorneys, and indicated its desire to work
with Ca1PERS to correct the issue and properly reclassify the positions under the miscellaneous
category.
As such, the City received the attached correction resolution from CalPERS, which is being
presented for adoption. The resolution also corrects errors to the City's current contract with
Ca1PERS, effective June 22, 2008, that were discovered during this process.
Recommendation
It is recommended that the attached Ca1PERS correction resolution be approved and adopted.
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ublic Agency inthe fo owlngLLclasses shall
is of said: Retiremenfi.�ystern`exeept such in
Year of predited prior and current service as a local prosecutor
member:shalf be„determined, ire accordance with Section
:'2.1363.1 of said Retirement Law -3 at age 55 Fully. .
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follow:
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