1993 AGN MAY 18 I20 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT Fear or Council Meeting of May 18, 1993 r 9 0 r 1887 I f ot TO: HONORABLE MAYOR AND CITY COUNCIL DATE: May 10, 1993 FROM: GORDON R. JOHNSON Personnel Director P SUBJECT: AMENDMENT TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT FOR POLICE SAFETY 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:" After the Resolution of Intention is approved by Council, Government Code Section 20461.5 requires a secret ballot election by the employees affected. A majority of the affected members must vote to approve the proposed plan. This election will be conducted during the week following Council adoption of that resolution. The City Council took similar actions effecting Fire and Miscellaneous City employees in 1983. 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. RECOMMENDATION Staff recommends that Council adopt the attached Resolution of Intention to approve an amendment to the contract between the Board of Administration of the Public Employees' Retirement System and the City Council and approve first reading of the attached Ordinance authorizing an amendment to the contract between the City Council and the Board of Administration of the Public Employees' Retirement System. Concur 7 ity Manager Attachments B2:AGNPDPRS J4W 40,;Eo