HomeMy WebLinkAbout11 CalPERS Retirement Agenda Item #
Sta-aff Report
To: Board of Directors
From: Stephen Hollabaugh
Date: July 1, 2004
Subject: Consideration of expressing the District's intent to contract with
CaIPERS Retirement System
Why this matter is before the Board: Because only the Board of Directors can approve a
resolution.
History: You will recall that the last MOU negotiated between the Union and the District has
an opener for the discussion of the Cal PERS retirement plan. The Labor Management
Steering Committee has been investigating costs and benefits of the CalPERS retirement
plan.
We have discussed this matter generally during the past couple of years. We have wanted to
set our compensation package so that we can attract and retain a highly skilled professional
staff. We have also recognized that constructing, maintaining and operating the water and
electric plant in our mountain environment and severe winters imposes physical demands on
our outside crews. These long term physical demands take a toll on people and they
eventually need to retire with reasonable income security.
Within our overall compensation package, our current pension plan is not competitive with
what is offered by other utility employers in Northern California. When we recruit staff we find
that an adequate pension plan is important. We have an opportunity to correct this deficiency
in our compensation package at minimal cost increase to the District because the employees
are willing to participate in funding the pension plan.
New Information: The Labor Management Steering Committee has reached a tentative
agreement on the terms a PERS retirement plan. The proposal is to close out the District's
current defined benefit plan (covering union employees) and the existing 401(a) money
purchase plan (covering union and exempt employees) and move the cash asset to PERS.
We would implement a PERS retirement plan with a benefit formula of 2% at age 60, with the
employees contributing 3% of wages as part of the funding of the plan.
To properly evaluate this suggestion we have provided the following information:
__ _ _ __ _ ___ _.._.
1) Discussion of Actuarial Study
2) Analysis showing contribution of existing Defined Benefit Plan and the two 401A money
purchase plans to CalPERS
3) Description of the entire PERS proposal, including overall costs of the District and
employees
4) Description of what happens next.
1) Actuarial Study (see attached): The attached actuarial study was conducted by
David Clement, an actuary employed by CalPERS. Page 1 is the actuarial
certification of David Clement. The valuation is for a MISCELLANEOUS PLAN, 2%
@ 60 SUPPLEMENTAL FORMULA, 100% PRIOR SERVICE (POOLED). The
actuary used the District's data that included the 59 employees and their
corresponding age, gender, service and salary.
The actuarial study does not include the funds that will be transferred from the
existing defined benefit and 401(a) plans because the value of these plans is a
moving target. We asked CalPERS to evaluate the data in this way and calculate the
total cost when we were closer to a final package.
The actuarial study identifies two basic costs to the District: (1) the normal cost and
(2) the payment of the unfunded liability. The actuarial study shows these costs on
page 2:
Expected Percent of
Dollar Amount Proiected Payroll
Payment for Normal Cost $185,247 5.123%
Payment on Amortized Bases $657,983 18.196%
Total Base Cost $843,230 23.319%
The amortized basis is the amortization of the unfunded liability, if any, over a
period of 13 years ending in 2017, This is listed on page 3 under the second
bullet point on the bottom of the page.
This is the cost to the District before transferring any of the existing retirement
plans to CaIPERS. The third to last paragraph on page 2 states that for each
$100,000 of employer contributions made at the time of contract, the employer
rate will be reduced by 0.282%.
2) Analysis showing contribution of Existing Defined Benefit Plan and the two-
401A Money purchase plans. The plan for consideration would transfer the Defined
Benefit plan currently part of the Union benefit, and the 401A Money Purchase Plans
of which the union employees receive 5% of earnings and the exempt employees
receive 10% of monthly earnings to these plans. These contributions are estimate to
be:
Defined Benefit Plan $1,200,000
401A Bargaining Unit Plan $ 430,000
2
401A Exempt and Management $ 430,000
Total Amount Transferred $2,060,000
This amount transferred will decrease the Districts cost by:
20.6 x 0.282% = 5.809%
Therefore the District base cost would be 23.319% - 5.809% = 17.51%
3) Description of the entire proposal with the employees: The proposal is broken out
and described below:
• Convert to the CaIPERS Miscellaneous Plan, 2% @ 60 Supplemental
Formula, 100% Prior Service. The CaIPERS lingo for this plan is:
Section 21353 (2% @ 60 Supplemental formula); Section 20938 (Limit Prior
Service to Members Employed on Contract Date); Section 21024 (Military
Service Credit as Public Service); Section 21536 (Local System Service Credit
Included in Basic Death Benefit); Section 21540.5 (Special Death Benefit for
Local Miscellaneous Members); Section 20965 (Credit for Unused Sick
Leave); Section 21548 (Pre-Retirement Optional Settlement 2 Death Benefit);
Section 21022 (Public Service Credit for Periods of Layoff); Section 21023.5
(Public Service Credit for Peace Corps or AmeriCorps: VISTA Service);
Section 21027 (Military Service Credit for Retired Persons) and 100% Prior
Service with a transfer of local system assets by waiver for local
miscellaneous members. (A description of each of these sections is
attached.)
• After the unfunded liability or Amortized Bases is paid off, convert to the
2%@ 55 Plan.
• Transfer the assets of the existing plans to CalPERS: The bargaining unit
defined benefit plan and both the 401A plan assets will be transferred to
CalPERS.
• Include Section 21540.5 Special Death Benefit for Local Miscellaneous
Members. The description of this benefit is outlined in the attachment.
• Employee Contribution to be 3% - The CalPERS retirement plan for local
miscellaneous member contribution rate will be 7% of reportable earnings as
of the effective date of the contract. This 7% is set by law. The employees
will pay 3% of this while the District will pay the remaining 4% for a total of 7%
going to CaIPERS,
Note: At one time during discussions with the Union, a proposal to only
transfer the Defined Benefit, keep their 401A and have an employee
contribution of 5% was presented. The Union selected to transfer all of the
401A proceeds to CalPERS and make the employee contributions 3%. Since
the value of the 401A proceeds was about 2%, this was at no additional cost
to the District for this proposal.
3
• Employee Death Certificate: If an employee dies while employed at the
District, that employee is entitled to the full amount of the transferred funds
from the defined benefit plan. Since the current defined benefit plan is under
funded and only the money on hand will be transferred, the District in the
event of a death while employed will make up the difference.
Overall Costs of District and Employees:
Current District and Employee Costs:
Cost$ % of Payroll
District 2004 estimated Retirement Plan costs; $676,000 18.5%
Employee existing costs: 0 (all costs covered by District)
Proposed District and Employee overall Annual Costs
District annual estimated costs with CalPers; Cost$ % of Payroll
District Cost = 17.51% + 4% = 21.5% $777,439 21.5%
Employee Cost = 3% of reportable earnings. $108,480 3.0%
(Note: % are of Annual Payroll Budget)
Total increase costs to District: 2.8% of annual payroll or $101,439
4) Description of what happens next: The following dates and process are estimated
based on data and the process that CalPERS uses:
Dates:
July 7, 2004: The date of the Adoption of the Resolution of Intent declaring
the District's intent to enter into a contract with CaIPERS.
Between July 8,2004 & The employee election takes place.
July 23, 2004:
August 4, 2004: Adoption of the final resolution at District Board meeting.
This date cannot be earlier than 20 days after adoption of
the Resolution of Intention (July 7, 2004)
On or after August 21, 2004: Effective date of the CaIPERS contract. This
date cannot be earlier than first day of a payroll period
following the effective date of Resolution.
Recommendation —This agenda item is set up with two parts: an A and a B.
A. Part A is just a presentation of basic facts about the PERS benefit and the cost of the
PERS plan compared to the cost of the existing pension plan. No board action is
contemplated under part A.
B. I recommend the Board approve the Resolution of Intention to Approve a Contract
between the Board of Administration California Public Employees' Retirement System and
the Board of Directors Truckee Donner Public Utility District.
4
MOU Opener for the Discussions of Cal PERS
02/04/03
District and Union agree to reopen the MOU (19.2g (1), (2) & (4))
within the term of the agreement, on or before July 1, 2004, to
discuss Cal Pers or any other mutually beneficial retirement plan
and how it relates to (19.2 g (1), (2) & (4)). If agreement is not
reached within 60 days of opening (or a mutually agreed to
extension thereof), the opener shall end and the language in the
MOU shall remain in effect for the term of the MOU.
NEW AGENCY
ACTUARIAL VALUATION
INCLUDING MANDATED RISK POOL
BENEFITS
As of May 31,2004
for the
MISCELLANEOUS PLAN, 20/o @ 60
SUPPLEMENTAL FOR.MULA., 100%
PRIOR SERVICE (POOLED)
of the
TRUCKEE DONNOR PUBLIC I JTILITY
DISTRICT
De er„l Ra°9ea� rj
Post-it'Fax Note 7671
Phon�CJ�lQ 74� �s-F�'�r.j,)dT' Pt one»��Fl.�n��C7.®222•��
Fax#
CaI ERS
California Public Employees' Retirement System
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CALPERS ACTUARIAL VALUATIt_
MISCELLANEOUS PLAN,2%@ 60 SUPPLEMENTAL FORMULA, 100%PRIOR SEP VICE(POOLED)OF Tfm
TRUCKEE DONNOR PUBLIC UTILITY DISTRICT
Actuarial Certification
To the best of my knowledge, this report is complete and accurate and contains sufficient information to
fully and fairly disclose the f mded condition of the MISCELLANEOI S PLAN, 2% @ 60
SUPPLEMENtAL FORMULA, 100% PRIOR SERVICE (POOLED) OF TIT i TRUCKEE DONNOR
PUBLIC UTILITY DISTRICT. This valuation is based on the employee da a and asset information
provided by the agency, and the benefits provided under this contract with Ca1PE LS. It is my opinion that
the valuation has been performed in accordance with generally accepted actuarial arinciples, in accordance
with standards of practice prescribed by the Actuarial Standards Board, and i rat the assumptions and
methods are internally consistent and reasonable for this plan.
David Clement
Associate Pension Actuary
May 12,2004 Fin Proc M 188758 Page I
CALPERS ACTUARIAL VALUATION
MISCELLA:'v'EOUS PLAN, 2%@ 60 SUPPLEMENTAL FORMULA, 100%PRIOR SER/ICE(POOLED)OF THE
TRUCKEE DONNOR PUBLIC UTILITY DISTRICT
Purpose of the Report
This actuarial valuation of the MISCELLANEOUS PLAN, 2% @ 60 SUPPLI MENTAL FORMULA,
100% PRIOR SERVICE (POOLED) OF THE TRUCKEE DONNOR PUBLIC JTILITY DISTRICT of
the California Public Employees' Retirement System (CaIPERS) was perfon red by CalPERS' staff
actuaries as of the proposed contract date of May 31,2004 in order to:
• set forth the actuarial assets and funding liabilities of this plan as of May 31, 2004;
and,
• establish the actuarially required contribution rates of this plan.
Use of this report for other purposes, such as for disclosure under Government I Accounting Standards
Board Statement No. 27,is inappropriate.
Numbers in exhibits may not add due to rounding.
Employer Contribution Rate
The actuarially required contribution, both in projected dollars and as a rate of pro ected payroll are shown
below- These rates ercept as indicated in the cover letter will continue to be in el'ert until June 30, 2006,
unless the contract is amended, the demographics arc significantly different at tht actual contract date, or
actuarial assumptions are changed. If the actual contract effective date is delay d beyond the proposed
effective date of May 31,2004 by more than 90 days,the employer contribution rat !s shown below are void
and new rates must be calculated,
Expected Percent of
Dollar Projected
—AMIUML Payroll
Payment for Normal Cost S 185,247 5,123%
Payment on Amortization Bases 657.983 ( -19 %
Total(not less than zero) S 843,230 23,319%
The employer contribution rates are affected by a number of factors: the demograph cs of the coveted
members, the provisions of the contract,the assets of the employer,the member con ributions and the
actuarial assumptions and methods. The demographics of the members refer not on y to the number of the
members,but also to each member's age,gender,service, and salary. Actuarial ass%mptions and methods
are used to project the demographics and the assets in to the future. Your future ern Moyer contribution
rates will differ from the rates provided above whenever gains or losses occur. Gair i and losses occur
whenever actual experience varies from the actuarial expectations(assumptions). G tins cause the employer
contribution rate to decrease;while losses cause the employer contribution rate to in :tease.
The employer contribution rate assumes receipt of no employer contributions. The,mployer contribution
rate can be reduced by malting contributions. For each S 100,000 of employer conm tutions made at the
time of contract the employer rate will be reduced by 282%
The actuarial methods and assumptions used in determining your rate can be found i t Appendix A. A
summary of the contract provisions used in determining your rate can be found in A;pendix B-
The actuarially required contribution,both in projected dollars and as a rate of proje :zed payroll are shown
below- These rates etcept as indicated in the cover letter will continue to be in effe:t until June 30,20066,
unless the contract is amended.the demographics are significantly different at the ac ual contract date.or
actuarial assumptions are changed
May 12,2004 Fin Proc ID 188758 Page 2
CALPERS ACTUARIAL VALUAT,
MISCELLANEOUS PLAN,2%@ 60 SUPPLEMENTAL FORMULA, 100%PRIOR SI RVICE(POOLED)OF THE
TRUCKEE DONNOR PUBLIC UTILITY DISTRICT
Summary of Results
Shown below an the key valuation results.
General Information Mav 31.2004
Members Included in the Valuation'
Active Members 59
Transfers 0
Vested Terminations 0
Receiving Payments
Total 0
59
Annual Covered Payroll 5 3,615,996
Average Annual Pay S 61,288
Average Attained Age for Actives 45.93
Average Entry Age for Actves 35.92
Total Assets at Market Value s 0
Retirement Program
Present Value of Projected Benefits $ 10,452.372
Entry Age Normal Accrued Liability S 6,453,157
Actuarial Value of Assets 0
Unfunded Liability/(Excess Assets) S 6,453,157
Required Contributions
Employer Contribution Required(in Projected Dollars)
Payment for Normal Cost S 195,247
Payment on Amortization Bases •' 657.983
Total(not less than zero) 5 843,230
Employer Contribution Required(Percent of Projected Payroll)
Payment for Normal Cost 5A23%
Payment on the Amortization Bases" 1 .I 6%
Total(not less than zero) 23.319%
• Counts of members included in the valmdon are counts of records processed by the valuation. Multiple records may exist for
those who have service in more than one coverage group. This does not mutt in a double tour ins of liabilities.Counts do not
include beneficiaries of ath ar Indexed levels 1959 Survivor Benefit.
The payment shown,is the amortization of the unfunded liability,if any,over the period ending 2)17,
May 12,2004 Fin Proc ID 188758 Page 3
CALPERS ACTUARIAL VALUATION
MISCELLANEOUS PLAN,2%@ 60 SUPPLEMENTAL FORMULA, 100%PRIOR SO VICE(POOLED)OF THE
TRUCKEE DONNOR PUBLIC U rMITY DISTRICT
Development of Accrued and Unfunded Liabilities for the Retire ment Program
1.Present Value of Benefits
a)Actives,Transfers and Vested Terminated S 10,452,372
b)Receiving Payments 0
c)Total $ 10,452,372
2.Present Value of Future Employer Normal Costs S 1.656,480
3.Present Value of Future Employee Contributions _ 2,342,735
4.Entry Age Normal Accrued Liability S 6,453,157
[(lc)-(2)-(3))
5.Actuarial Value of Assets
a)Employer Reserves $ 0
b)Active Employee Account Balances _ 0
c)Total Valuation Assets $ 0
6.Unfunded Accrued Liability/(Excess Assets) S 6,453,157
[(4)-(5c))
May 12,2004 Fin Proc ID 188758 Page 4
38. Section 21353 2% @ 60 Full, Supplemental or Modified Formula for Local
Miscellaneous Members
This formula provides to local miscellaneous members 2% of pay at age 60 for each year of
service credited with that employer. For members who retire earlier, the percentage of pay is
reduced to 1.092% at age 50 which gradually increases for each attained age to the maximum
of 2.418% at age 63+. (A formula change affecting the members' contribution rate requires an
election of the affected members.)
This formula is mandated for local miscellaneous members unless the employer has
contracted to provide the 2% @ 55 formula (Section 21354) or the 1.5% @ 65 formula
(Section 21100). Local miscellaneous members subject to the 2% @ 60 Full or Supplemental
formulas contribute 7% of reportable earnings.
Those covered by the 2% @ 60 Modified formula (coordinated with Social Security) contribute
7% of reportable earnings in excess of $133.33.
Employer Cost: Valuation required.
Member Cost: As discussed above.
13. Section 20938 Limit Prior Service to Members Employed on Contract Date
A contracting agency may limit prior service credit (service rendered to the agency prior to its
contract date with CaIPERS) to persons in employment with the agency on the effective date
of its CaIPERS contract, or amendment to contract.
This benefit can be provided in the initial contract or by amendment for agencies that provide
0% prior service and now wish to provide all or a portion of prior service credit to current
employees only. This option may also be applied upon the removal of an exclusion of a
member group or classification.
Employer Cost: Valuation required.
Member Cost: None.
19. Section 21024 Military Service Credit as Public Service
A member may elect to purchase up to four years of service credit for any continuous active
military or merchant marine service prior to employment. This benefit applies only to active
members while in employment with an employer providing this benefit in its contract.
Those agencies, which provided this benefit prior to January 1, 1977, may amend to become
subject to the provisions of Section 21024, Statutes of 1976, if it is agreed to by the employees
or their representatives. This amendment would allow current employees to elect within 90
days to receive credit under the former statute wherein the employer funded the entire cost for
military service predating the employer's original contract date.
Employer Cost: No valuation required. Actual costs will emerge in future
valuations.
Member Cost: Individual calculation required. After the contract has been
amended, the member may obtain cost information by contacting
Member Services Division.
.....:,,.. .
47. Section 21536 Local System Service Credit Included in Basic ueatn benetIt
Local system service credit will be used in the computation of benefits payable under the basic
death benefit for all local members (miscellaneous and safety) who were members of a local
retirement system at the time the local system was discontinued.
Employer Cost: Minimal, no valuation required.
Member Cost: None.
48. Section 21540.5 Special Death Benefit for Local Miscellaneous Members
If the death of a local miscellaneous member was a direct consequence of a violent act while
on the job, the special death benefit payable to an eligible surviving spouse is a monthly
allowance equal to ''/2 of the member's final compensation. If there are eligible children in
addition to the spouse, the allowance may be increased to a maximum of 75%.
The Special Death Benefit is payable to the surviving spouse until death or to eligible
unmarried children until age 22. To be eligible for this benefit, the spouse must have been
married to the member for at least one year prior to death, or prior to sustaining the injury or
disease resulting in death.
Employer Cost: Valuation required.
Rough Estimate: Impact on Employer Normal Cost:
• 0.01% to 0.05% of payroll
Impact on Total Employer Contribution Rate:
• 0.01% to 0.06% of payroll
Member Cost: None.
14. Section 20965 Credit for Unused Sick Leave
Unused accumulated sick leave at time of retirement may be converted to additional service
credit at the rate of 0.004 year of service credit for each day of unused sick leave (i.e., 250
days of sick leave equals one additional year of service credit).
The employer must report only those days of unused sick leave that were accrued by the
member during the normal course of employment. Additional days of unused sick leave
reported for the purpose of increasing the member's retirement benefit are prohibited.
Most safety member formulas limit the member benefits to a maximum of 85% of final
compensation. The addition of this benefit does not increase the maximum Percentage
allowable.
This section applies to members whose effective date of retirement is within four months of
separation from employment and who retire after the effective date of the contract amendment.
Employer Cost: Valuation required.
Rough Estimate: Impact on Employer Normal Cost:
• 0.1% to 0.2% of payroll for all groups
Impact on Total Employer Contribution Rate:
• 0.2% to 0.7% of payroll for all groups
Member Cost: None.
.............._. ..........
50. Section 21548 Pre-Retirement Optional Settlement 2 Death Benefit
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.
Employer Cost: Valuation required.
Rough Estimate: Impact on Employer Normal Cost:
• 0.1% to 0.2% of payroll for miscellaneous groups
• 0.01% to 0.02% of payroll for safety groups
Impact on Total Employer Contribution Rate:
• 0.2% to 0.4% of payroll for miscellaneous groups
• 0.02% to 0.06% of payroll for safety groups
Member Cost: None.
17. Section 21022 Public Service Credit for Periods of Layoff
A member may receive up to one year of public service credit for each period of layoff from
employment on or after January 1, 1981.
To be eligible to receive the service credit, the member must meet the following conditions:
a. The member must return within 12 months of the date of layoff to full-time employment
under the procedures of the employer for laid off employees returning to work. (A
certification will be supplied to the employer to ensure compliance with this provision.)
b. The member must elect to purchase the credit within 3 years of returning to work or the
effective date of the contract amendment to become subject to this section.
C. The member must redeposit any CalPERS contributions withdrawn during the period of
layoff.
Employer Cost: No valuation required. Actual costs will emerge in future
valuations.
Member Cost: Individual calculation required. After the contract has been
amended, the member may obtain cost information by contacting
Member Services Division.
18. Section 21023.5 Public Service Credit for Peace Corps or AmeriCorps: VISTA
Service
A member may elect to purchase up to three years of service credit for any volunteer service in
the Peace Corps or AmeriCorps: Volunteers In Service To America.
Employer Cost: No valuation required. Actual costs will emerge in future
valuations.
Employee Cost: Individual calculation required. After the contract has been
amended, the member may obtain cost information by contacting
22. Section 21027 Military Service Credit for Retired Persons
A contracting agency which is subject to Section 21024 may amend its contract to permit
certain retired persons to purchase up to four years of service credit for any continuous active
military or merchant marine service prior to employment. The former local member must have
retired before the employer's contract included the provisions of Section 21024 and
immediately following service with the employer providing this option.
The retiree must not receive credit for the same military service with another publicly funded
retirement system.
The retired person's allowance would be increased only with respect to the allowance on or
after the effective date of the election to purchase the service credit.
Employer Cost: No valuation required. Actual costs will emerge in future
valuations.
Member Cost: Individual calculation required. After the contract has been
amended, the retired member may obtain cost information by
contacting Member Services Division.
RESOLUTION OF INTENTION
TO APPROVE A CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
BOARD OF DIRECTORS
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies in the Public Employees' Retirement System, making their
employees members of said System, and sets forth the procedure by
which participation may be accomplished; and
WHEREAS, one of the steps required in the procedure is the adoption by the governing
body of the public agency of a resolution giving notice of intention to
approve a contract for such participation of said agency in the Public
Employees' Retirement System, which resolution shall contain a summary
of the major provisions of the proposed retirement plan; and
WHEREAS, attached is a summary of the major provisions of the proposed plan;
NOW, THEREFORE, BE IT RESOLVED, that the governing body of the above agency
gives, and it does hereby give notice of intention to approve a contract
between said governing body and the Board of Administration of the Public
Employees' Retirement System, providing for participation of said agency
in said retirement system, a copy of said contract and a copy of the
summary of the major provisions of the proposed plan being attached
hereto, as an "Exhibit", and by this reference made a part hereof.
By:
Presiding Officer
Title
Date adopted and approved
(New Agency)
CON-301 (Rev.4196)
i
r
CaIPERS
EXHIBIT
California
Public Employees' Retirement System
CONTRACT
Between the
Board of Administration
California Public Employees ' Retirement System
and the
Board of Directors
Truckee Donner Public Utility District
In consideration of the covenants and agreement hereafter contained and on the part of
both parties to be kept and performed, the governing body of above public agency,
hereafter referred to as "Public Agency", and the Board of Administration, Public
Employees' Retirement System, hereafter referred to as "Board", hereby agree as
follows:
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 60 for local miscellaneous members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after 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.
..........ITLA
r= , f
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. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. Any exclusion(s) shall remain in effect until such time as the Public
Employees' Retirement System determines that continuing said
exclusion(s) would risk a finding of non-compliance with any federal tax
laws or regulations. If such a determination is contemplated, the Public
Employees' Retirement System will meet with the Public Agency to
discuss the matter and coordinate any required changes or amendments
to the contract.
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. SAFETY EMPLOYEES;
b. EMPLOYEES WHO ARE MEMBERS OF THE TRUCKEE
DONNER PUBLIC UTILITY DEFINED BENEFIT PLAN WHO DID
NOT WAIVE THEIR RIGHTS UNDER THAT PLAN AS OF THE
EFFECTIVE DATE OF THE CONTRACT;
C. EMPLOYEES WHO ARE MEMBERS OF THE TRUCKEE
DONNER PUBLIC UTILITY DISTRICT MANAGEMENT-EXEMPT
401(A) PLAN WHO DID NOT WAIVE THEIR RIGHTS UNDER
THAT PLAN AS OF THE EFFECTIVE DATE OF THE
CONTRACT;
d. EMPLOYEES WHO ARE MEMBERS OF THE TRUCKEE
DONNER PUBLIC UTILITY DISTRICT BARGAINING UNIT 401(A)
PLAN WHO DID NOT WAIVE THEIR RIGHTS UNDER THAT
PLAN AS OF THE EFFECTIVE DATE OF THE CONTRACT; AND
e. MEMBERS OF THE GOVERNING BODY FIRST ELECTED OR
APPOINTED PRIOR TO JULY 1, 1994. (Elected or appointed
officials who are first elected or appointed on or after July 1,
1994 or to a term of office not consecutive with a term held on
June 30, 1994 are excluded pursuant to Government Code
Section 20322).
r
L U`d U1tVa
5. Assets heretofore accumulated with respect to members in the local
retirement system upon contract date who waive their rights under that
system shall be transferred to the Public Employees' Retirement System
upon the effective date of this contract and applied against the liability for
prior service incurred hereunder. That portion of the assets to be
transferred which represent the accumulated contributions (plus interest
thereupon) required of the employees under said local system shall be
credited to the individual membership account of each such employee
under the Public Employees' Retirement System.
6. 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 21353 of said Retirement Law
(2% at age 60 supplemental to Federal Social Security).
7. Public Agency elects to be subject to the following optional provisions:
a. Section 20938 (Limit Prior Service to Members Employed on
Contract Date).
b. Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
C. Section 21536 (Local System Service Credit Included in Basic
Death Benefit).
d. Section 21540.5 (Special Death Benefit for Local Miscellaneous
Members).
e. Section 20965 (Credit for Unused Sick Leave).
f. Section 21548 (Pre-Retirement Optional Settlement 2 Death
Benefit).
g. Section 21022 (Public Service Credit for Periods of Lay-Off).
h. Section 21023.5 (Public Service Credit for Peace Corps,
AmeriCorps VISTA, or AmeriCorps Service).
i. Section 21027 (Military Service Credit for Retired Persons).
8. 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 of said Retirement System.
9. 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.
10. 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.
11. 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.
BOARD OF ADMINISTRATION BOARD OF DIRECTORS
PUBLIC EMPLOYEES' RETIRE IYSTEM TRUCKEE DONNER PUBLIC UTILITY
' DISTRICT
BY BY
KENNETH ZION, CHIEF PRESIDING OFFICER-,-,' J
ACTUAF . MPLOYER SERVICES DIVISION =a `
PUR3t IGIPLOYEES' RETIREMENT SYSTEM
WA
` ess Date
Attest:
t
Clerk
NEW AGENCY Org Id 5242
PERS-CON-702N(Rev. 8/02) 5
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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
(governing body) of the
(public agency)
on
(date)
Clerk/Secretary
Title
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PERS-CON-12 (rev. 1/96)
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