Attachment 1 - OrdinanceORDINANCE
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE TOWN COUNCIL OF THE TOWN
OF LOS GATOS AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
NOW, THEREFORE, THE PEOPLE OF THE TOWN OF LOS GATOS AND THE TOWN
COUNCIL DO HEREBY ORDAIN AS FOLLOWS:
SECTION I
That an amendment to the contract between the Town Council of the Town of Los Gatos and
the Board of Administration, California Public Employees' Retirement System is hereby
authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such
reference made a part hereof as though herein set out in full.
SECTION II
The Mayor of the Town Council is hereby authorized, empowered, and directed to execute said
amendment for and on behalf of said Agency.
SECTION III
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on the 6th day of August 2019, and adopted by the following vote as an ordinance of the
Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on the
3rd day of September 2019. This ordinance takes effect 30 days after it is adopted. In lieu of
publication of the full text of the ordinance within fifteen (15) days after its passage a summary
of the ordinance may be published at least five (5) days prior to and fifteen (15) days after
adoption by the Town Council and a certified copy shall be posted in the office of the Town
Clerk, pursuant to GC 36933(c)(1).
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
1 of 2
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Ordinance
Council Meeting Date
ATTACHMENT 1
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
DATE:
2 of 2
Ordinance Council Meeting Date
Ca1PERS
California
Public Employees' Retirement System
EXHIBIT A
441*,
MENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
Town Council
Town of Los Gatos
a►
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,
1972, and witnessed March 1, 1972, and as amended effective August 2, 1972, June 1,
1976, July 1, 1976, October 1, 1976, January 4, 1990, December 16, 1992, August 6,
1997, June 24, 2001, June 29, 2008 and September 15, 2012 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree as
follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed
effective September 15, 2012, and hereby replaced by the following paragraphs
numbered 1 through 19 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 classic
local miscellaneous members entering membership in the miscellaneous
classification on or prior to September 15, 2012, age 60 for classic local
miscellaneous members entering membership for the first time in the
miscellaneous classification after September 15, 2012, age 62 for new local
miscellaneous members, age 50 for classic local safety members and 57
for new local safety members.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
2. Public Agency shall participate in the Public Employees' Retirement System
from and after April 1, 1972 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 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-CaIPERS 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 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.
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 Police Officers (herein referred to as local safety members);
b. 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:
PLEASE DO NOT SIGN {`EXHIBIT ONLY"
a. ALL PERSONS EMPLOYED ON OR PRIOR TO SEPTEMBER 15,
2012 WHO WERE MEMBERS OF THE LOCAL SYSTEM EXCEPT
THOSE IN EMPLOYMENT ON SEPTEMBER 15, 2012 WHO
WAIVED THEIR RIGHTS UNDER THE LOCAL SYSTEM AND
THOSE PERSONS WHO WAIVED THEIR RIGHTS BETWEEN
MARCH 18 AND MARCH 26, 1976.
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. Assets heretofore accumulated with respect to members under the local
retirement system who waived their rights under that system have been
transferred to the Public Employees' Retirement System on April 1, 1972 or
between March 18, and March 26, 1976 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.
8. The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
in employment before and not on or after June 29, 2008 shall be determined
in accordance with Section 21354 of said Retirement Law, subject to the
reduction provided therein for service prior to June 30, 1976, termination of
Social Security, for members whose service has been included in Federal
Social Security (2% at age 55 Full and Modified).
9. The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
in employment on or after June 29, 2008 and not entering membership for
the first time in the miscellaneous classification after September 15, 2012,
shall be determined in accordance with Section 21354.4 of said Retirement
Law, subject to the reduction provided therein for service prior to June 30,
1976, termination of Social Security, for members whose service has been
included in Federal Social Security (2.5% at age 55 Full and Modified).
10. 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
September 15, 2012 shall be determined in accordance with Section
21353 of said Retirement Law (2% at age 60 Full).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
11. 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).
12. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law (3%
at age 50 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 21536 (Local System Service Credit Included in Basic Death
Benefit).
b. Sections 21624 and 21626 (Post -Retirement Survivor Allowance).
c. Section 21574 (Fourth Level of 1959 Survivor Benefits).
d. Section 20042 (One -Year Final Compensation) for those classic
local miscellaneous members entering membership on or prior to
September 15, 2012 and for local safety members.
e. Section 21024 (Military Service Credit as Public Service).
f. Section 20475 (Different Level of Benefits): Section 21353 (2% at
age 60 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local miscellaneous members
entering membership for the first time with this agency in the
miscellanous classification after September 15, 2012.
g.
Section 20516 (Employees Sharing Additional Cost):
From and after the effective date of this amendment to contract, 3%
for classic local police members in the Los Gatos Police Officer's
Association.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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
CaIPERS 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.
15. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on July
1, 1976. 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. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 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 and local safety members.
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,
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 b#ective on the day of
BOARD OF ADMINISTRATICR TOWN COUNCILCY
PUBLIC EMPLOYEES' REMENT SYSTEM TOWN OF LOS GATOS
BY
ARNITA PAIGE, CAttF
PENSION CONTA CTS AND PREFUNDING
PROGRAMS SION
PUBLIC EM `40YEES' RETIREMENT SYSTEM
GJ
Witness
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BY
PRESIDING OFFICER
AMENDMENT CaIPERS ID #4589482285
PERS-CON-702A
Clerk