1993 AGN JUN 15 I33 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of June 15, 1993 �O ,,.*or pore t. �. 1887 �a04— I f OT —ifus TO HONORABLE MAYOR AND CITY COUNCIL DATE: June 2, 1993 FROM: GORDON R. JOHNSON Personnel Director SUBJECT: AMENDMENT TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT FOR POLICE SAFETY - SECOND READING AND ADOPTION OF ORDINANCE NO. 0-12-93 BACKGROUND The Police Management MOU Article II, Section 4, states in part: "The City will pay the employee's contribution of 9% to the Public Employees' Retirement System (PERS) and,provide retirement benefits as currently specified under the City's contract with PERS. All such contributions shall be deposited in the members' retirement account. This change from the current policy of crediting 4 1/2% of such contributions to the members' retirement account shall take effect following the amendment of the City's contract with PERS. On May 18, 1993, the Council adopted Resolution No. R-13-03, a resolution of intention to approve an amendment to the City's contract with PERS, and the first reading of Ordinance No. 0-12-93 authorizing an amendment to the PERS contract changing the percentage of the City's contributions to PERS for Police Safety employees from 4 1/2 % to 9 %. As required by state law, a majority of the affected members voted to approve the proposed plan following the May 18th meeting. The City Council took similar actions effecting Fire and Miscellaneous City employees in 1983. This amendment takes effect July 17, 1993, the start of the first pay period which begins at least 30 days following the second reading and adoption of this ordinance. FISCAL IMPACT There is a minor fiscal impact which will be included in each year's PERS actuarial evaluation. The cost is based on the number of employees who leave the City's service and withdraw the employee's contribution and on the number of retiring employees who convert the employee's contribution to salary during their final year of employment, thus increasing their retirement earnings. Attached is a letter from PERS dated May 7, 1993, showing the impact of this action for fiscal year 1993-94 being 0.216% of the sworn Police payroll or $6480. This amount is included in the Police Department's 1993-94 budget. RECOMMENDATION Staff recommends that Council approve second reading and adoption of Ordinance No. 0-12-93 authorizing an amendment to the contract between the City Council and the Board of Administration of PERS. Concur ty pager Attachment 82:AGNPDPR ��A4.1