AgdaPkt 2003-04-28 - Laserfiche WebLink

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�,4 C- REPOR T To the Honorable Mayor and City Council From the City Manager April 28, 2003 Subject Introduction of Ordinance approving and authorizing execution of the amendment to the contract with the Public Employees Retirement System (PERS) to provide Government Code 21362.2 and 21548, "3% @ 50 Full Formula" and Pre - Retirement Optional Settlement 2 Death Benefit for Local 2400, I.A.F.F. members. Recommendation That the City Council, introduce the ordinance approving and authorizing a contract amendmentwith the Public Employees Retirement System (PERS) to provide for Government Code, Section 21362.2 and 21548, 3% @ 50 Full Formula and Pre - Retirement Optional Settlement 2 Death Benefit for Local 2400 I.A.F.F. members. Background During the most recent negotiations with the International Association Fire Fighters Local 2400, the City _ agreed to provide to Local 2400 I.A.F.F. members, Government Code Section 21362.2 and 21548, 3% @ 50 Full Formula and Pre- Retirement Optional Settlement 2 Death Benefit. During the 1999 Legislative Session, Senate Bill 400 (SB 400) added two optional service retirement formulas to the menu available to public agency safety members, one of the options is the 3% @ 50. Currently, the contract with the Public Employees' Retirement System and the City provides Section 21362, of the Government Code, "2% @ 50" for Local 2400 I.A.F.F. members. Under the Public Employees' Retirement System (PERS), the formula "3% @ 50" will be used to calculate the retirement allowance. There are three components used to calculate this allowance: years of service, benefit factor, and final compensation. The benefit factor, "3% @ 50 ", is the percent of pay to which a retiree is entitled for each year of service. Of the 12 comparable cities that we use for survey information, 10 use the 3% @ 50 formula, while the remaining two use the 3% @55 formula for I.A.F.F. members. Additionally, the contract with the Public Employees' Retirement System and the City provides Section 21573, of the Government Code, "1959 Survivor Benefit, level 3 ", which provides a fixed monthly allowance to eligible survivors of members who die before retirement. The Pre - Retirement Optional Settlement 2 Death Benefit provides an additional monthly allowance in lieu the lump sum basic death benefit to the spouse of a deceased member, who was eligible to retire for service at the time of death. On April 14, 2003, the City Council approved Resolution No. 14520, the intent to amend the contract between the City of Redwood City and the Public Employees Retirement System (PERS). Fo amend the current contract with PERS the City Council must approve a Resolution of Intention, _ introduce an Ordinance approving the amendment, and then adopt the Ordinance.