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HomeMy WebLinkAbout2005-04-26 - AGENDA REPORTS - CALPERS CONTR AMEND (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: Jr CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: April 26, 2005 i Ken Striplin AMENDMENT OF THE CONTRACT BETWEEN CALPERS AND CITY OF SANTA CLARITA City Manager's Office RECOMMENDED ACTION City Council adopt a resolution of intent to amend the contract with California Public Employee's Retirement System (CalPERS) to provide Section 21574.5 (Indexed Level of 1959 Survivor Benefits) for local miscellaneous members; introduce and pass to second reading an ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION, CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF SANTA CLARITA." The original contract with CalPERS was implemented on November 14, 1988, and includes a basic death benefit for employees. However, it does not provide survivor benefits similar to Social Security. As a government entity, we are not subject to Social Security. We are part of the CalPERS system that has a separate survivor benefit similar to Social Security. Providing this benefit enables the City to ensure employees have an adequate survivor benefit to provide for their families. The benefit would provide a monthly allowance for eligible survivors should an employee die before retirement. This benefit provides a great deal of security for the employee at a nominal cost to the City. To implement this benefit, the City Council must amend the current contract. Additional steps in Ordinance passed to Second reading Adopted: St . s-- qo the process include: City Council adopt a resolution of intent (April 26) Employee Election for Ca1PERS (May 2) City Council adopt a Final Ordinance (May 24) Effective Date of Ordinance (30 days following date of adoption) Staff will come back to the Council with an ordinance on May 24, 2005. It is anticipated that the benefit would be effective July 1, 2005. ALTERNATIVE ACTIONS Other action as directed by the City Council. FISCAL IMPACT The City's cost would be $25,250.00 annually. Funds are currently budgeted (This is equal to $6.00 per month per employee). ATTACHMENTS Resolution Amendment to Contract Ordinance