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HomeMy WebLinkAbout9 CALPERS Agenda Item # 9 Public Utility District ACTION To: Board of Directors From: Nancy Waters Date: September 15, 2010 Subject: Consideration of a Resolution and Documents to Accept the CaIPERS Employee-Funded 2.7% @ 55 Plan Amendment 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for adoption of the Resolution to amend the CaIPERS contract. 2. HISTORY The District has been contracted with the California Public Employees Retirement System (CaIPERS)with a retirement formula of 2% @ 60 since August, 2004. District employees requested a consideration of enhancing the formula to 2.7% @ 55, with the increased costs borne by the employees. The costs were determined by a CaIPERS actuarial valuation; the employees voted in favor of proceeding with the amendment. The Board approved the CaIPERS Resolution of Intent to amend the contract at the July 21st meeting. As required by Government Code, an actuarial consultant, Mr. Steven Itelson, presented the future costs to the Board at the September 1 st meeting. 3. NEW INFORMATION The final step requires the Board to adopt a Resolution to amend the contract. A copy of the amendment is included in this packet. 4. FISCAL IMPACT There is no additional cost to the District for the plan amendment; the employees are paying all increased costs. 5. RECOMMENDATION a) Authorize the Board President to sign the Amendment to Contract between Board of Administration, California Public Employees' Retirement System and the Board of Directors, Truckee Donner Public Utility District b) Adopt the resolution authorizing an Amendment to the Contract La ZMaryCh ma chael D. Holley Administrative Services Manager General Manager CaIPERS California Public Employees' Retirement System AM, MMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the Board of Directors Truckee Donner Public Utility District 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 21, 2004, and witnessed August 10, 2004, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 11 are hereby stricken from said contract as executed effective August 21, 2004, and hereby replaced by the following paragraphs numbered 1-through 13 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. 2. Public Agency shall participate in the Public Employees' Retirement System from and after August 21, 2004 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 (CaIPERS) and its trustees, agents and employees, the CaIPERS 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 attorneys 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-CaIPERS retirement program. (b) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency's agreement with a third party other than CaIPERS 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. (d) Public Agency's election to file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code and/or Public Agency's election to reject this Contract with the CaIPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. (g) Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 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. Employees other than local safety members (herein referred to as local miscellaneous members). 5. 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 DISTRICT DEFINED BENEFIT PLAN WHO DID NOT WAIVE THEIR RIGHTS UNDER THAT PLAN AS AUGUST 21, 2004; 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 AUGUST 21, 2004; 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 AUGUST 21, 2004; 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). 6. Assets heretofore accumulated with respect to members under the local retirement system who waived their rights under that system on August 21, 2004 have been transferred to the Public Employees' Retirement System and applied against the liability for prior service incurred thereunder. That portion of assets so transferred which represent the accumulated contributions (plus interest thereof) required of the employees under said local system have been credited to the individual membership account of each such employee under the Public Employees' Retirement System. 7. The percentage .of final compensation to be provided for each year of credited prior and current ;service as a local miscellaneous member in employment before and not on or after the effective date of this amendment to contract shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 supplemental to Federal Social Security). 8. The percentage of final compensation to be provided ,for each year of credited prior and current service as a local miscellaneous member in: employment on or after the effective date of this amendment to contract shall be determined in accordance with Section 21354.5 of said Retirement Law(2.7% at age 55 supplemental to Federal Social Security). 9. Public Agency elected and 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). C. Section 21536 (Local System Service Credit Included in Basic Death Benefit). d. Section 21540.5 (Special Death Benefit—Violent Act). e. Section 20965 (Credit for Unused Sick Leave). f. Section 21548 (Pre-Retirement Option 2W 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, orAmeriCorps Service). i. Section 21027 (Military Service Credit for Retired Persons). 10. 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. 11. 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. r 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. 12. 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, 13. 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 BOARD OF DIRECTORS PUBLIC EMPLOYEES' RETIREMENT SYSTEM TRUCKEE DONNER PUBLIC UTILITY DISTRICT BY BY LORI MCGARTLAND, CHIEF PRESIDING OFFICER EMPLOYER SERVICES DIVISION Jeff Bender, Board President PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk of the Board Michael D. Holley AMENDMENT ER#1899 PERS-CON-702A TRUCKEE DONNER PUBLIC UTILITY DSITRICT RESOLUTION AUTHORIZING AN AMENDMENT TO THE CONTRACT No. WHEREAS, the Board of Administration of the California Public Employees' Retirement System and the Board of Directors of the Truckee Donner Public Utility District entered into a contract effective on August 21, 2004 providing for the participation of said public agency in the California Public Employees' Retirement System; and WHEREAS, it is now desirable to take advantage of certain benefits provided under said Retirement System and not included in said contract; NOW, THEREFORE, BE IT RESOLVED, that said governing body authorized, and it does hereby authorize, an amendment to said contract, a copy of said amendment attached hereto and by such reference made a part hereof as though herein set out in full; and NOW, THEREFORE, BE IT FURTHER RESOLVED, that the presiding officer of said governing body is hereby authorized, empowered and directed to execute said amendment for and on behalf of said public agency. Adopted this day of , Presiding Officer Jeff Bender, Board President Attest: Clerk/Secretary Michael D. Holley (Amendment) PERS-CON-13(Rev. 1/98)