1998 AGN APR 21 I16 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF APRIL 21,1998 TO: Honorable Mayor and City Council APPROVAL: Henry Garcia, City Man FROM: Dennis Morris, Human Resources Director SUBJECT: DATE: Resolution of Intention and First Reading of Ordinance to Amend the Agency's Contract to Provide Section 21574 (Fourth Level of 1959 Survivor Benefits) for Local Fire Members Only April 8,1998 BACKGROUND: Under a recent labor agreement with the Fire Union employees, the City has agreed to amend the contract with PERS to provide the Level Four, 1959 Survivor Benefits for all unit members. DISCUSSION/ANALYSIS: State law provides a basic framework for the retirement plan, and some benefits are optional for local agencies, at an additional cost. Presently, the contract does not provide for the 1959 Survivor Benefits. The employer cost for the Fourth Level of 1959 Survivor Benefits is $3.50 per month per covered member. Agencies are billed annually and payments may vary depending on the reserve level. In addition, members covered by the 1959 Survivor Benefits contribute $2.00 per month. The Fire Unit members have agreed to the elimination of the long term disability (LTD) coverage from the "cafeteria plan" and instead, to having the City take part of the contribution of $26.77 per month per member to offset the cost of the PERS Survivor Benefit. The unit members will purchase their own LTD. FINANCIAL IMPACT; None. ENVIRONMENTAL IMPACT: None. RECOMMENDATION: Request the Mayor and City Council's approval of the resolution of intention and the first reading of the ordinance to amend the Public Employees' Retirement System (PERS) contract to include the fourth level 1959 Survivor Benefits clause for local fire unit members, only. ATTACHMENTS_ Resolution of Intent to Amend Contract, Certification of Governing Body's Action, Certification - of Compliance with Gov't. Code Section 7507, Ordinance and two "EXHIBITS".