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04-1116_OC EMPLOYEES RETIREMENT SYSTEM_Early Retirement Incentive Agr (3).- 0 0 EARLY RETIREMENT INCENTIVE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM This Agreement is entered into effective the 16"' of November, 2004, and is by and between the CITY OF SAN JUAN CAPISTRANO ("CITY"), a district pursuant to Government Code Section 31557, and the ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ("OCERS"), a public retirement system organized and operating under the provisions of the County Employees Retirement Law of 1937 (Govt. Code Sections 31450-31899.10); WHEREAS, the CITY wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire early ("Early Retirement Incentive Plan"); and, WHEREAS, under Government Code Section 31641.04, there are certain conditions that must be met before employees may receive additional retirement service Credit pursuant to such statute, including the condition that the CITY must pay into the retirement fund a sum of money determined by the Board of Retirement of OCERS to be equal to the actuarial equivalent of the difference between the retirement allowance the employee receives after the receipt of such additional retirement service credit and the amount the employee would have received without such service credit, and that such payment shall be made in a manner and time period mutually acceptable to CITY and the Board of Retirement of OCERS; and WHEREAS, the purpose of this agreement is to set forth the manner and time period in which the CITY will make the payments to OCERS as required by Government Code Section 31641.04; NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN the CITY and OCERS as follows: 1. At various times between November 17, 2004 and May 16, 2005, the CITY may offer to some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire. Such additional service credit shall not exceed two (2) years of service credit per eligible employee. 2. In granting such additional retirement service credit, the CITY will comply with all of the conditions and requirements set forth in Government Code Section 31641.04, including, but not limited to, the requirement that the San Juan Capistrano City Council must adopt one or more resolutions containing all of the information required by said Section 31641.04. From and after the date of this Agreement, each resolution adopted by the CITY in connection with the Early Retirement Incentive Plan shall also state that notwithstanding any other provision of the resolution, the amount of additional retirement service credit granted to employees pursuant to such resolution will in no event cause the retirement allowance of any employee to exceed the maximum benefit allowed under Section 415 of the Internal Revenue Code (including all special Government plan limits), for participants of tax -qualified retirement plans. 3. In accordance with subsection (a)(3) of Government Code Section 31641.04, for each CITY employee who receives additional retirement service credit pursuant to said statute, the CITY must transfer to OCERS an amount of money determined by the Board of Retirement Exhibit A t!!J to be the actuarial equivalent of the difference between the retirement allowance such employee receives after the receipt of service credit under this section and the amount he or she would have received without such service credit. It is impractical to calculate this amount until after the employees who receive such additional service credit have actually retired. Therefore, the parties agree that the calculation of such amounts, and time and manner of payment (including interest), shall be as follows: (a) As soon as practicable after May 16, 2005, OCERS will provide its actuary with relevant information pertaining to all employees of the CITY who retired between November 17, 2004 and May 16, 2005, and who were granted additional retirement service credit pursuant to Government Code Section 31641.04. Based on the information provided by OCERS, the actuary will calculate, for each such employee, the actuarial equivalent of the difference between the allowance the retired employee receives with such additional service credit, and the amount the retiree would have received without such service credit. (b) As soon as practicable after May 16, 2005, OCERS will provide the CITY with a statement that sets forth the amounts calculated by the actuary pursuant to the preceding paragraph, and the CITY will be obligated to pay such amount to OCERS in accordance with Government Code Section 31641.04. The CITY will pay OCERS the present value amount per the actuary calculations to be paid in full no later than December 31, 2005. Interest will accrue on all unpaid amounts from the date the employee retires until the date of payment. The interest rate will be the same as the actuarial interest assumption rate, which is currently eight (8) percent per year, but may be periodically adjusted pursuant to Government Code Section 31453 up to an amount not to exceed ten (10) percent per year. 4. If, for any reason, the CITY fails to make the payment required under this agreement on or before the date such payment is due (for any reason), the Board of Retirement of OCERS may make a demand to the CITY for immediate payment of the amount due. The CITY shall then, within 30 days, transfer the amount required to the County Advance Reserve Account of the Retirement Fund. WHEREFORE, the parties have entered into this agreement as of the date first written above. CITY OF SAN JUAN CAPISTRANO By: tt hart, :Mayor Approved as to Form: By: City Attorney City of San Juan Capistrano ATTEST: M' aret R. Monahan, City Clerk ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM By:. Reed Royalty,Chairm Approved as to Form: By: ie Wyne eneral Counsel, OWRS Exhibit A d A . • EARLY RETIREMENT INCENTIVE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM This Agreement is entered into effective the 16th of November, 2004, and is by and between the CITY OF SAN JUAN CAPISTRANO ("CITY"), a district pursuant to Government Code Section 31557, and the ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ("OCERS"), a public retirement system organized and operating under the provisions of the County Employees Retirement Law of 1937 (Govt. Code Sections 31450-31899.10); WHEREAS, the CITY wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire early ("Early Retirement Incentive Plan"); and, WHEREAS, under Government Code Section 31641.04, there are certain conditions that must be met before employees may receive additional retirement service credit pursuant to such statute, including the condition that the CITY must pay into the retirement fund a sum of money determined by the Board of Retirement of OCERS to be equal to the actuarial equivalent of the difference between the retirement allowance the employee receives after the receipt of such additional retirement service credit and the amount the employee would have received without such service credit, and that such payment shall be made in a manner and time period mutually acceptable to CITY and the Board of Retirement of OCERS; and WHEREAS, the purpose of this agreement is to set forth the manner and time period in which the CITY will make the payments to OCERS as required by Government Code Section 31641.04; NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN the CITY and OCERS as follows: 1. At various times between November 17, 2004 and May 16, 2005, the CITY may offer to some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire. Such additional service credit shall not exceed two (2) years of service credit per eligible employee. 2. In granting such additional retirement service credit, the CITY will comply with all of the conditions and requirements set forth in Government Code Section 31641.04, including, but not limited to, the requirement that the San Juan Capistrano City Council must adopt one or more resolutions containing all of the information required by said Section 31641.04. From and after the date of this Agreement, each resolution adopted by the CITY in connection with the Early Retirement Incentive Plan shall also state that notwithstanding any other provision of the resolution, the amount of additional retirement service credit granted to employees pursuant to such resolution will in no event cause the retirement allowance of any employee to exceed the maximum benefit allowed under Section 415 of the Internal Revenue Code (including all special Government plan limits), for participants of tax -qualified retirement plans. 3. In accordance with subsection (a)(3) of Government Code Section 31641.04, for each CITY employee who receives additional retirement service credit pursuant to said statute, the CITY must transfer to OCERS an amount of money determined by the Board of Retirement Exhibit A SD to be the actuarial equivalent of the difference between the retirement allowance such employee receives after the receipt of service credit under this section and the amount he or she would have received without such service credit. It is impractical to calculate this amount until after the employees who receive such additional service credit have actually retired. Therefore, the parties agree that the calculation of such amounts, and time and manner of payment (including interest), shall be as follows: (a) As soon as practicable after May 16, 2005, OCERS will provide its actuary with relevant information pertaining to all employees of the CITY who retired between November 17, 2004 and May 16, 2005, and who were granted additional retirement service credit pursuant to Government Code Section 31641.04. Based on the information provided by OCERS, the actuary will calculate, for each such employee, the actuarial equivalent of the difference between the allowance the retired employee receives with such additional service credit, and the amount the retiree would have received without such service credit. (b) Prior to May 16, 2005, OCERS will provide the CITY with a statement that sets forth the amounts calculated by the actuary pursuant to the preceding paragraph, and the CITY will be obligated to pay such amount to OCERS in accordance with Government Code Section 31641.04. The CITY will pay OCERS the present value amount per the actuary calculations in annual installments to be paid in full no later than June 30, 2005. Interest will accrue on all unpaid amounts from the date the employee retires until the date of payment. The interest rate will be the same as the actuarial interest assumption rate, which is currently eight (8) percent per year, but may be periodically adjusted pursuant to Government Code Section 31453 up to an amount not to exceed ten (10) percent per year. 4. If, for any reason, the CITY fails to make the payment required under this agreement on or before the date such payment is due (for any reason), the Board of Retirement of OCERS may make a demand to the CITY for immediate payment of the amount due. The CITY shall then, within 30 days, transfer the amount required to the County Advance Reserve Account of the Retirement Fund. above. CIT WHEREFORE, the parties have entered into this agreement as of the date first written Approved as to 0 City of San Juan Capistrano ATTEST: M r aret R. Monahan, City Clerk ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM 0 Approved as to Form: By: /djlie Wyne C�Aeneral Counsel, OCERS Exhibit A 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493.1053 FAx sanjuancapistrano. org Jwa, �° mcxuxxxi¢x ssmusxan � 1961 1776 TRANSMITTAL TO: Reed Royalty, Chairman OCERS 2223 Wellington Santa Ana, CA 92701 FROM: Meg Monahan, City Clerk (949) 443-6308 v/lYl^ r^y ' RE: Early Retirement Incentive Agreement MEMBERS OF THE CITY COUNCIL SAM ALLEVATO DIANE L. BATHGATE WYATT HART JOE SOTO DAVID M. SWERDUN DATE: January 6, 2005 The City Council approved the enclosed Early Retirement Incentive Agreement at their meeting of January 5, 2005. Enclosed are (2) original, executed agreements. Please execute these agreements and return (1) original to my attention. Thank you. Cc: Julia Silva, Personnel Manager San Juan Capistrano: Preserving the Past to Enhance the Future • • 1/5/2005 D6 AGENDA ITEM TO: Honorable Mayor and Members of the City Council r FROM: Dave Adams, City Manager 00` SUBJECT: Consideration of Amendment to the Early Retirement Incentive Agreement with the Orange County Employees Retirement System RECOMMENDATION: By resolution, adopt the Amended Early Retirement Incentive Agreement with the Orange County Employees Retirement System to Allow the City to Offer an Early Retirement Incentive. SITUATION: A resolution was adopted on November 16, 2004 by the City Council to approve an Early Retirement Incentive agreement with the Orange County Employees Retirement System. This agreement allows the City to offer an early retirement incentive to those employees in eligible classifications who opt to retire between the dates of November 17, 2004 and January 18, 2005. After meeting and conferring with the employee associations, it is proposed that the City Council extend the time period for eligibility for the Early Retirement Incentive from November 17, 2004 to March 17, 2005. This additional two months will assist eligible employees to consider issues regarding the Early Retirement Incentive and allow them to make a more informed decision about early retirement. Additionally, Section 3(b) of the Early Retirement Incentive agreement between the CITY and OCERS states that "Prior to May 16, 2005, OCERS will provide the CITY with a statement that sets forth the amounts calculated by the actuary...." Further, it states that "The CITY will pay OCERS the present value amount per the actuary calculations in annual installments to be paid in full no later than June 30, 2005." At OCERS' request, it is proposed that the agreement be modified to read that the actuary statement to be provided to the CITY be done "As soon as practicable after May 16, 2005...." and, that "The CITY will pay OCERS the present value amount per the actuary calculations to be paid in full no later than December 31, 2005." 0 0 Agenda Item January 5, 2005 Page 2 COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: Not Applicable. FINANCIAL CONSIDERATIONS: There are no additional financial considerations imposed by the proposed modifications. Payment to OCERS will be made by December 31, 2005, instead of June 30, 2005 (FY 04-05). NOTIFICATION: San Juan Capistrano Classified Employees Association" San Juan Capistrano Professional and Management Employees Association* City Employees Associates" RECOMMENDATION: By resolution, adopt the Amended Early Retirement Incentive Agreement with the Orange County Employees Retirement System to allow the City to offer an early retirement incentive. Respectfully submitted, '0� a%% .--z Dave Adams City Manager Attachment: 1. Resolution Prepared by, c Ec-a� C� J I" Silva H man Resources Manager 0 • RESOLUTION NO. 05-01-05 -02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, (EARLY RETIREMENT INCENTIVE AGREEMENT) (OCERS) WHEREAS, the City of San Juan Capistrano wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an early retirement incentive; and, WHEREAS, the City Council of the City of San Juan Capistrano determines that, because of the impending curtailment of service and/or changes in the manner of performing services, and resulting economic benefit to the City, the best interest of the City will be served by making designated members of the Orange County Employees Retirement System eligible to receive additional service credit; and, WHEREAS, the City Council of the City of San Juan Capistrano wishes to make available to members of the Orange County Employees Retirement System who are employees of the City of San Juan Capistrano and occupy the Development Services Manager classification and the position classifications allocated to the clerical series (Sr. Executive Assistant, Administrative Assistant, Administrative Secretary, Secretary, Office Assistant and Human Resources Assistant) an Early Retirement Incentive; and, WHEREAS, receipt of the additional service credit shall be subject to the conditions set forth in the Early Retirement Incentive Agreement between the City of San Juan Capistrano and OCERS, and subsections (b) and (d) of Section 31641.04 of the California Government Code; and, provided that such additional service credit shall not cause any retirement allowance to exceed the limitations contained in Section 415 of the Internal Revenue Code; and, WHEREAS, the additional retirement service credit shall be made available pursuant to Government Code Section 31641.04 and shall not exceed two (2) years of service credit per eligible employee. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano, does hereby adopt the Early Retirement Incentive Agreement, attached as Exhibit A and incorporated herein by reference. Employees in the identified classifications will be eligible for the early retirement incentive between November 17, 2004 and March 17, 2005. 01-05-2005 0 0 PASSED, APPROVED, AND ADOPTED this 5' day of January 2005. t�iC✓� WYAT ART, MAYOR ATTEST: MAR)GAT4ET R. MONAHAN, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 05-01-05-02 was duly adopted by the City Council of the City of San Juan Capistrano at a Special meeting thereof, held the 5t day of January 2005, by the following vote: AYES: COUNCIL MEMBERS: Allevato, Bathgate, Soto, & Mayor Hart NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Swerdlin 01-05-2005 0 0 EARLY RETIREMENT INCENTIVE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM This Agreement is entered into effective the 16th of November, 2004, and is by and between the CITY OF SAN JUAN CAPISTRANO ("CITY'), a district pursuant to Government Code Section 31557, and the ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ("OCERS"), a public retirement system organized and operating under the provisions of the County Employees Retirement Law of 1937 (Govt. Code Sections 31450-31899.10); WHEREAS, the CITY wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire early ("Early Retirement Incentive Plan"); and, WHEREAS, under Government Code Section 31641.04, there are certain conditions that must be met before employees may receive additional retirement service credit pursuant to such statute, including the condition that the CITY must pay into the retirement fund a sum of money determined by the Board of Retirement of OCERS to be equal to the actuarial equivalent of the difference between the retirement allowance the employee receives after the receipt of such additional retirement service credit and the amount the employee would have received without such service credit, and that such payment shall be made in a manner and time period mutually acceptable to CITY and the Board of Retirement of OCERS; and WHEREAS, the purpose of this agreement is to set forth the manner and time period in which the CITY will make the payments to OCERS as required by Government Code Section 31641.04; NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN the CITY and OCERS as follows: 1. At various times between November 17, 2004 and May 16, 2005, the CITY may offer to some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire. Such additional service credit shall not exceed two (2) years of service credit per eligible employee. 2. In granting such additional retirement service credit, the CITY will comply with all of the conditions and requirements set forth in Government Code Section 31641.04, including, but not limited to, the requirement that the San Juan Capistrano City Council must adopt one or more resolutions containing all of the information required by said Section 31641.04. From and after the date of this Agreement, each resolution adopted by the CITY in connection with the Early Retirement Incentive Plan shall also state that notwithstanding any other provision of the resolution, the amount of additional retirement service credit granted to employees pursuant to such resolution will in no event cause the retirement allowance of any employee to exceed the maximum benefit allowed under Section 415 of the Internal Revenue Code (including all special Government plan limits), for participants of tax -qualified retirement plans. 3. In accordance with subsection (a)(3) of Government Code Section 31641.04, for each CITY employee who receives additional retirement service credit pursuant to said statute, the CITY must transfer to OCERS an amount of money determined by the Board of Retirement =1164i_1 0 0 to be the actuarial equivalent of the difference between the retirement allowance such employee receives after the receipt of service credit under this section and the amount he or she would have received without such service credit. It is impractical to calculate this amount until after the employees who receive such additional service credit have actually retired. Therefore, the parties agree that the calculation of such amounts, and time and manner of payment (including interest), shall be as follows: (a) As soon as practicable after May 16, 2005, OCERS will provide its actuary with relevant information pertaining to all employees of the CITY who retired between November 17, 2004 and May 16, 2005, and who were granted additional retirement service credit pursuant to Government Code Section 31641.04. Based on the information provided by OCERS, the actuary will calculate, for each such employee, the actuarial equivalent of the difference between the allowance the retired employee receives with such additional service credit, and the amount the retiree would have received without such service credit. (b) As soon as practicable after May 16, 2005, OCERS will provide the CITY with a statement that sets forth the amounts calculated by the actuary pursuant to the preceding paragraph, and the CITY will be obligated to pay such amount to OCERS in accordance with Government Code Section 31641.04. The CITY will pay OCERS the present value amount per the actuary calculations to be paid in full no later than December 31, 2005. Interest will accrue on all unpaid amounts from the date the employee retires until the date of payment. The interest rate will be the same as the actuarial interest assumption rate, which is currently eight (8) percent per year, but may be periodically adjusted pursuant to Government Code Section 31453 up to an amount not to exceed ten (10) percent per year. 4. If, for any reason, the CITY fails to make the payment required under this agreement on or before the date such payment is due (for any reason), the Board of Retirement of OCERS may make a demand to the CITY for immediate payment of the amount due. The CITY shall then, within 30 days, transfer the amount required to the County Advance Reserve Account of the Retirement Fund. WHEREFORE, the parties have entered into this agreement as of the date first written above. CITY OF SAN JUAN CAPISTRANO ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM 0 Wyatt Hart, Mayor Approved as to Form: By: City Attorney City of San Juan Capistrano 21 Reed Royalty, Chairman Approved as to Form: 0 Julie Wyne General Counsel, OCERS Exhibit A F 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 4931171 (949) 493-1053 FAX u iv"tsan)uancapi.c(rano.oig REVISION ** • 7j �7/D�-- MEMBERS OF THE CITY COUNCIL NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL SAM ALLEVATO DIANE L. BATHGATE WYATf HART JOESOTO DAVID M. SWERDLIN The City Council of San Juan Capistrano will meet at 5:00 a.m. on January 5, 2005 in the City Council Chamber in City Hall, to consider: "Consideration of Amendment to the Early Retirement Incentive Agreement with the Orange County Employee Retirement System" — Item No. D6 If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at City Hall by 5:00 p.m. on Tuesday, January 4, 2005 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue 'Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Julia Silva, Human Resources Manager. You may contact that staff member at (949) 443-6321 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancaoistrano.oro. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council- aoendasasanivancaoistrano. oro. Meg Monahan, CMC City Clerk cc: San Juan Capistrano Classified Employees Association*; San Juan Capistrano Professional and Management Employees Association*; City Employees Associates; Julia Silva, Human Resources Manager * * Meeting scheduled for 5:00 p.m. San Juan Capistrano: Preserving the Past to Enhance the Future 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 4931171 (949) 4931053 FAx WNN'.Saiiiii(inC(lpiS(raiio.oig 9 MEMBERS OF THE CITY COUNCIL NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL SAM ALLEVATO DIANE L. BATHGATE W VATT HART JOE SOTO DAVID M. SWERDLIN The City Council of San Juan Capistrano will meet at 7:00 p.m. on January 5, 2005 in the City Council Chamber in City Hall, to consider: "Consideration of Amendment to the Early Retirement Incentive Agreement with the Orange County Employee Retirement System" — Item No. D6 If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at City Hall by 5:00 p.m. on Tuesday, January 4, 2005 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue 'Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Julia Silva, Human Resources Manager. You may contact that staff member at (949) 443-6321 with any questions. The agenda, including agenda reports, is available to you on our web site: www.san'uancai)istrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council -agendas o sanivancapistrano.oro. Meg Monahan, CMC City Clerk cc: San Juan Capistrano Classified Employees Association'; San Juan Capistrano Professional and Management Employees Association`; City Employees Associates; Julia Silva, Human Resources Manager ' Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX www 5anJaancapiStrano. ow January 6, 2005 i 0 NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO MEMBERS OF THE CITY COUNCIL SAM ALLEVATO DIANE L. BATHGATE WYATT HART JOE SOTO DAVID M. SWERDLIN On January 5, 2005 the City Council of San Juan Capistrano met regarding: "Consideration of Amendment to the Early Retirement Incentive Agreement with the Orange County Employee Retirement System" Item No. D6. The following action was taken at the meeting: Resolution No. 05-01-05-02 adopted adopting the amended early retirement incentive agreement with the Orange County Employees Retirement System (OCERS) to allow the City to offer an early retirement incentive. If you have any questions regarding this action, please contact Julia Silva, Human Resources Manager at 443-6321 for more detailed information. Thank you, �G Mitfi O�iYZ Deputy Cit Clerk P Y Y Enclosed: Resolution No. 05-01-05-02 Cc: San Juan Capistrano Classified Employees Association*; San Juan Capistrano Professional and Management Employees Association*; City Employees Associates; Julia Silva, Human Resources Manager San Juan Capistrano: Preserving the Past to Enhance the Future RETIREMENT SYSTEM Serving the Active and November 17, 2004 Retired Member: of CI'IYol RAN( 110SAN "IA Ms. Cindy Russell M A" "'°' City of San Juan Capistrano CIIF 01 SAN KHAN 32400 Paseo Adelanto C VISIIZ NO San Juan Capistrano, CA 92675 COUNTY (II ORANG[ Re: Early Retirement Incentive °iMI CLLIP.kY DIS I'RICI Enclosed are both signed documents. When you have the Mayor and City Clerks CLf,1. signatures please send us back an original copy. ORAN(J COUNI) C[IF DRI N & FAuuu If you have any questions please call me at 714 569-4818. COMMISSION ORANG( (buNIY Thank you, R1 LIM MINT I -HRF u'r SnTRnI 1 Ttacy Ayes ORANGL COLN 1 Y FILL Secretary At mom nY ORANGE COUNn LOU[. AGI'.N( Y FORMAI ION CoNINIISmoN OttANU: COLN'IY PURI R: LAW I.B2XRY ORANGE COUNTY SAN17A110N UIs7RICI' ORANGE CONN T) I RANSPOR I AIION AI,THORITY ORANGE COUNTA' VCCFOR CONrRoi Dism('I' SuPI-molz Coum OF CAI IYORNIA, COUN' I Y OF ORANGM, TIUNSPORIAHON COR HX)RAG1:N(11S ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ♦ 2223 Wellington Avenue, Santa Ana, CA 92701 Telephone (714) 558-6200 Fax (714) 558-6236 0 32400 PASEO APELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX www.sanjuanea,iistrano.org Jwa„ IA(AANAPIfI � fSIRRtIStlfR I 1961 1776 TRANSMITTAL TO: Tracy Ayres, Secretary OCERS 2223 Wellington Ave Santa Ana, CA 92701 FROM: Meg Monahan, City Clerk RE: Early Retirement Incentive Agreement DATE: November 29, 2004 MEMBERS OF THE CITY COUNCIL SAM ALLEVATO DIANE L. BATHGATE WYATT HART JOE ROTO DAVID M. SWERDUN Enclosed, please find enclosed an original, executed agreement for your records. This agreement was approved by the City Council on November 16, 2004, by unanimous vote. If you have any questions concerning the agreement, please contact Julia Silva, Personnel Manager at (949) 443-632. Thank you Cc: Julia Silva, Personnel Manager Cynthia L. Russell, Administrative Services Director San Juan Capistrano: Preserving the Past to Enhance the Future 11/16/2004 SUPPLEMENTARY AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: Dave Adams, City Manager e'�- SUBJECT: Consideration of an Early Retirement Incentive Agreement with the Orange County Employees Retirement System RECOMMENDATION: By motion, adopt the Resolution providing the Early Retirement Incentive Agreement with the Orange County Employees Retirement System to Allow the City to Offer an Early Retirement Incentive. A revision has been made to the Resolution extending the date of the early retirement incentive by one day, to be from November 17, 2004 to January 18, 2005. This change is being proposed because January 17, 2005, the original end date of the early retirement incentive period, is an OCERS-observed holiday. This resolution replaces the resolution provided with the original agenda report. Respectfully submitted, Dave Adams City Manager Attachment: 1. Revised Resolution Prepared by, %0i (I/�.SSil Human Resources Manager 0 RESOLUTION NO, 04-11-16-0 4 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, (EARLY RETIREMENT INCENTIVE AGREEMENT) (OCERS) WHEREAS, the City of San Juan Capistrano wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an early retirement incentive; and, WHEREAS, the City Council of the City of San Juan Capistrano determines that, because of the impending curtailment of service and/or changes in the manner of performing services, and resulting economic benefit to the City, the best interest of the City will be served by making designated members of the Orange County Employees Retirement System eligible to receive additional service credit; and, WHEREAS, the City Council of the City of San Juan Capistrano wishes to make available to members of the Orange County Employees Retirement System who are employees of the City of San Juan Capistrano and occupy the Development Services Manager classification and the position classifications allocated to the clerical series (Sr. Executive Assistant, Administrative Assistant, Administrative Secretary, Secretary, Office Assistant and Human Resources Assistant) an Early Retirement Incentive; and, WHEREAS, receipt of the additional service credit shall be subject to the conditions set forth in the Early Retirement Incentive Agreement between the City of San Juan Capistrano and OCERS, and subsections (b) and (d) of Section 31641.04 of the California Government Code; and, provided that such additional service credit shall not cause any retirement allowance to exceed the limitations contained in Section 415 of the Internal Revenue Code; and, WHEREAS, the additional retirement service credit shall be made available pursuant to Government Code Section 31641.04 and shall not exceed two (2) years of service credit per eligible employee. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano, does hereby adopt the Early Retirement Incentive Agreement, attached as Exhibit A and incorporated herein by reference. Employees in the identified classifications will be eligible for the early retirement incentive between November 17, 2004 and January 18, 2005. 11-16-2004 0 PASSED,APPROVED,AND JOE ATTEST: AJ 12 A ARET R. MONAHAN, CITY STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) ,MA 0 of November 2004. I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 04-11-16-04 was duly adopted by the City Council of the City of San Juan Capistrano at a regular meeting thereof, held the 16th day of November 2004, by the following vote: AYES: COUNCIL MEMBERS: Allevato, Bathgate, Swerdlin, Hart & Mayor Soto NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None R. MONAHAN, City 2 11-16-2004 E EARLY RETIREMENT INCENTIVE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM This Agreement is entered into effective the 16t�' of November, 2004, and is by and between the CITY OF SAN JUAN CAPISTRANO ("CITY"), a district pursuant to Government Code Section 31557, and the ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ("OCERS"), a public retirement system organized and operating under the provisions of the County Employees Retirement Law of 1937 (Govt. Code Sections 31450-31899.10); WHEREAS, the CITY wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire early ("Early Retirement Incentive Plan"); and, WHEREAS, under Government Code Section 31641.04, there are certain conditions that must be met before employees may receive additional retirement service credit pursuant to such statute, including the condition that the CITY must pay into the retirement fund a sum of money determined by the Board of Retirement of OCERS to be equal to the actuarial equivalent of the difference between the retirement allowance the employee receives after the receipt of such additional retirement service credit and the amount the employee would have received without such service credit, and that such payment shall be made in a manner and time period mutually acceptable to CITY and the Board of Retirement of OCERS; and WHEREAS, the purpose of this agreement is to set forth the manner and time period in which the CITY will make the payments to OCERS as required by Government Code Section 31641.04; NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN the CITY and OCERS as follows: 1. At various times between November 17, 2004 and May 16, 2005, the CITY may offer to some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire. Such additional service credit shall not exceed two (2) years of service credit per eligible employee. 2. In granting such additional retirement service credit, the CITY will comply with all of the conditions and requirements set forth in Government Code Section 31641.04, including, but not limited to, the requirement that the San Juan Capistrano City Council must adopt one or more resolutions containing all of the information required by said Section 31641.04. From and after the date of this Agreement, each resolution adopted by the CITY in connection with the Early Retirement Incentive Plan shall also state that notwithstanding any other provision of the resolution, the amount of additional retirement service credit granted to employees pursuant to such resolution will in no event cause the retirement allowance of any employee to exceed the maximum benefit allowed under Section 415 of the Internal Revenue Code (including all special Government plan limits), for participants of tax -qualified retirement plans. 3. In accordance with subsection (a)(3) of Government Code Section 31641.04, for each CITY employee who receives additional retirement service credit pursuant to said statute, the CITY must transfer to OCERS an amount of money determined by the Board of Retirement 101219[i1 to be the actuarial equivalent of the difference between the retirement allowance such employee receives after the receipt of service credit under this section and the amount he or she would have received without such service credit. It is impractical to calculate this amount until after the employees who receive such additional service credit have actually retired. Therefore, the parties agree that the calculation of such amounts, and time and manner of payment (including interest), shall be as follows: (a) As soon as practicable after May 16, 2005, OCERS will provide its actuary with relevant information pertaining to all employees of the CITY who retired between November 17, 2004 and May 16, 2005, and who were granted additional retirement service credit pursuant to Government Code Section 31641.04. Based on the information provided by OCERS, the actuary will calculate, for each such employee, the actuarial equivalent of the difference between the allowance the retired employee receives with such additional service credit, and the amount the retiree would have received without such service credit. (b) Prior to May 16, 2005, OCERS will provide the CITY with a statement that sets forth the amounts calculated by the actuary pursuant to the preceding paragraph, and the CITY will be obligated to pay such amount to OCERS in accordance with Government Code Section 31641.04. The CITY will pay OCERS the present value amount per the actuary calculations in annual installments to be paid in full no later than June 30, 2005. Interest will accrue on all unpaid amounts from the date the employee retires until the date of payment. The interest rate will be the same as the actuarial interest assumption rate, which is currently eight (8) percent per year, but may be periodically adjusted pursuant to Government Code Section 31453 up to an amount not to exceed ten (10) percent per year. 4. If, for any reason, the CITY fails to make the payment required under this agreement on or before the date such payment is due (for any reason), the Board of Retirement of OCERS may make a demand to the CITY for immediate payment of the amount due. The CITY shall then, within 30 days, transfer the amount required to the County Advance Reserve Account of the Retirement Fund. WHEREFORE, the parties have entered into this agreement as of the date first written above. CITY OF SAN JUAN CAPISTRANO ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM By: Joe Soto, Mayor ATTEST: Margaret R. Monahan, City Clerk Approved as to Form: By: City Attorney City of San Juan Capistrano 0 Reed Royalty, Chairman Approved as to Form: By: Julie Wyne General Counsel, OCERS Exhibit A 0 • 11/16/2004 AGENDA ITEM TO: Honorable Mayor and Members of the City Council FROM: Dave Adams, City Manager 9h SUBJECT: Consideration of an Early Retirement Incentive Agreement with the Orange County Employees Retirement System RECOMMENDATION: By resolution, adopt the Early Retirement Incentive Agreement with the Orange County Employees Retirement System to Allow the City to Offer an Early Retirement Incentive. SITUATION: At this time, it is believed that the best interest of the City will be served by making designated members of the Orange County Employees Retirement System eligible to receive additional service credit as an early retirement incentive. To that end, the City wishes to offer some of its employees an early retirement incentive of up to two (2) years of service credit. After evaluation, the City has concluded that due to changes in the manner of performing services, the City wishes to make available an early retirement incentive to members of the Orange County Employees Retirement System who are employees of the City, meet the early retirement criteria and occupy certain position classifications. The eligible classifications are as follows: The Development Services Manager classification and those position classifications allocated to the City's clerical series -- Sr. Executive Assistant, Administrative Assistant, Administrative Secretary, Secretary, Office Assistant and Human Resources Assistant. It is recommended that the City Council approve by resolution the Early Retirement Incentive Agreement with the Orange County Employees Retirement System. A copy of the agreement has been submitted to the OCERS Board for consideration at their November 15, 2004 meeting. Ratification of the agreement is contingent on approval by the City Council at the November 16, 2004 meeting. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: Not Applicable. 0 Agenda Item Paae 2 FINANCIAL CONSIDERATIONS: November 16, 2004 The cost resulting from the implementation of the Early Retirement Incentive Agreement is unknown at this time, as it hinges on which and how many employees will take advantage of this opportunity to retire early. The estimated cost is somewhere between $100,000. and $150,000. It is proposed that the necessary funds to fund the early retirements that will arise from this agreement be allocated from the General Fund reserves. Payment to OCERS will be made by the end of FY 04-05. NOTIFICATION: San Juan Capistrano Classified Employees Association San Juan Capistrano Professional and Management Employees Association City Employees Associates RECOMMENDATION: By resolution, adopt the Early Retirement Incentive Agreement with the Orange County Employees Retirement System to allow the City to offer an early retirement incentive. Respectfully submitted, Dave Adams City Manager Attachment: 1. Resolution Prepared by, wv:�, M. vq �ulia ilva Human Resources Manager 0 0 RESOLUTION NO. 04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, (EARLY RETIREMENT INCENTIVE AGREEMENT) (OCERS) WHEREAS, the City of San Juan Capistrano wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an early retirement incentive; and, WHEREAS, the City Council of the City of San Juan Capistrano determines that, because of the impending curtailment of service and/or changes in the manner of performing services, and resulting economic benefit to the City, the best interest of the City will be served by making designated members of the Orange County Employees Retirement System eligible to receive additional service credit; and, WHEREAS, the City Council of the City of San Juan Capistrano wishes to make available to members of the Orange County Employees Retirement Systemwho are employees of the City of San Juan Capistrano and occupy the Development Services Manager classification and the position classifications allocated to the clerical series (Sr. Executive Assistant, Administrative Assistant, Administrative Secretary, Secretary, Office Assistant and Human Resources Assistant) an Early Retirement Incentive; and, WHEREAS, receipt of the additional service credit shall be subject to the conditions set forth in the Early Retirement Incentive Agreement between the City of San Juan Capistrano and OCERS, and subsections (b) and (d) of Section 31641.04 of the California Government Code; and, provided that such additional service credit shall not cause any retirement allowance to exceed the limitations contained in Section 415 of the Internal Revenue Code; and, WHEREAS, the additional retirement service credit shall be made available pursuant to Government Code Section 31641.04 and shall not exceed two (2) years of service credit per eligible employee. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano, does hereby adopt the Early Retirement Incentive Agreement, attached as Exhibit A and incorporated herein by reference. Employees in the identified ATTACHMENT 0 classifications will be eligible for the early retirement incentive between November 17, 2004 and January 17, 2005. PASSED, APPROVED, AND ADOPTED this 2004. JOE SOTO, MAYOR ATTEST: MARGARET R. MONAHAN, CITY CLERK day of 0 EARLY RETIREMENT INCENTIVE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM This Agreement is entered into effective the 16x' of November, 2004, and is by and between the CITY OF SAN JUAN CAPISTRANO ("CITY'), a district pursuant to Government Code Section 31557, and the ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ("OCERS"), a public retirement system organized and operating under the provisions of the County Employees Retirement Law of 1937 (Govt. Code Sections 31450-31899.10); WHEREAS, the CITY wishes to offer some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire early ("Early Retirement Incentive Plan"); and, WHEREAS, under Government Code Section 31641.04, there are certain conditions that must be met before employees may receive additional retirement service credit pursuant to such statute, including the condition that the CITY must pay into the retirement fund a sum of money determined by the Board of Retirement of OCERS to be equal to the actuarial equivalent of the difference between the retirement allowance the employee receives after the receipt of such additional retirement service credit and the amount the employee would have received without such service credit, and that such payment shall be made in a manner and time period mutually acceptable to CITY and the Board of Retirement of OCERS; and WHEREAS, the purpose of this agreement is to set forth the manner and time period in which the CITY will make the payments to OCERS as required by Government Code Section 31641.04; NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN the CITY and OCERS as follows: 1. At various times between November 17, 2004 and May 16, 2005, the CITY may offer to some of its employees additional retirement service credit pursuant to Government Code Section 31641.04, as an incentive for those employees to retire. Such additional service credit shall not exceed two (2) years of service credit per eligible employee. 2. In granting such additional retirement service credit, the CITY will comply with all of the conditions and requirements set forth in Government Code Section 31641.04, including, but not limited to, the requirement that the San Juan Capistrano City Council must adopt one or more resolutions containing all of the information required by said Section 31641.04. From and after the date of this Agreement, each resolution adopted by the CITY in connection with the Early Retirement Incentive Plan shall also state that notwithstanding any other provision of the resolution, the amount of additional retirement service credit granted to employees pursuant to such resolution will in no event cause the retirement allowance of any employee to exceed the maximum benefit allowed under Section 415 of the Internal Revenue Code (including all special Government plan limits), for participants of tax -qualified retirement plans. 3. In accordance with subsection (a)(3) of Government Code Section 31641.04, for each CITY employee who receives additional retirement service credit pursuant to said statute, the CITY must transfer to OCERS an amount of money determined by the Board of Retirement Exhibit A 0 0 to be the actuarial equivalent of the difference between the retirement allowance such employee receives after the receipt of service credit under this section and the amount he or she would have received without such service credit. It is impractical to calculate this amount until after the employees who receive such additional service credit have actually retired. Therefore, the parties agree that the calculation of such amounts, and time and manner of payment (including interest), shall be as follows: (a) As soon as practicable after May 16, 2005, OCERS will provide its actuary with relevant information pertaining to all employees of the CITY who retired between November 17, 2004 and May 16, 2005, and who were granted additional retirement service credit pursuant to Government Code Section 31641.04. Based on the information provided by OCERS, the actuary will calculate, for each such employee, the actuarial equivalent of the difference between the allowance the retired employee receives with such additional service credit, and the amount the retiree would have received without such service credit. (b) Prior to May 16, 2005, OCERS will provide the CITY with a statement that sets forth the amounts calculated by the actuary pursuant to the preceding paragraph, and the CITY will be obligated to pay such amount to OCERS in accordance with Government Code Section 31641.04. The CITY will pay OCERS the present value amount per the actuary calculations in annual installments to be paid in full no later than June 30, 2005. Interest will accrue on all unpaid amounts from the date the employee retires until the date of payment. The interest rate will be the same as the actuarial interest assumption rate, which is currently eight (8) percent per year, but may be periodically adjusted pursuant to Government Code Section 31453 up to an amount not to exceed ten (10) percent per year. 4. If, for any reason, the CITY fails to make the payment required under this agreement on or before the date such payment is due (for any reason), the Board of Retirement of OCERS may make a demand to the CITY for immediate payment of the amount due. The CITY shall then, within 30 days, transfer the amount required to the County Advance Reserve Account of the Retirement Fund. WHEREFORE, the parties have entered into this agreement as of the date first written above. CITY OF SAN JUAN CAPISTRANO ORANGE COUNTY EMPLOYEES 0 Joe Soto, Mayor Approved as to Form: By: Q Q�M— Ci Attorney City of San Juan Capistrano ATTEST: Margaret R. Monahan, City Clerk RETIREMENT SYSTEM By: Reed Royalty, Chairman Approved as to Form: 0 Julie Wyne General Counsel, OCERS =3it1.7fV_1 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX l9 ll'M.SanjuunCa(ASlrano.org November 17, 2004 0 0 NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO MEMBERS OF THE CITY COUNCIL SAM ALLEVATO DIANE L. BATHGATE MATT HART JOE SOTO DAVID M. SWERDLIN On November 16, 2004 the City Council of San Juan Capistrano met regarding: "Consideration of an Early Retirement Incentive Agreement with the Orange County Employees Retirement System" Item No. D9. The following action was taken at the meeting: Resolution No. 04-11-16-04 adopted, which adopted the early retirement incentive agreement with the Orange County Employees Retirement System (OCERS) to allow the city to offer an early retirement incentive. If you have any questions regarding this action, please contact Julia Silva, Human Resources Manager at 443-6321 for more detailed information. Thank you, Mitzr Ortiz Deputy City Clerk J Enclosed: Resolution No. 04-11-16-04 Cc: SJC Classified Employees Association; SJC Professional & Management Employees Association; City Employees Associates'; Julia Silva, Human Resources Manager San Juan Capistrano: Preserving the Past to Enhance the Future • 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX N' W K'.SQjlJGQtZC¢ j115(Y(1tl0.01'�9 10 MEMBERS OF THE CITY COUNCIL NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL SAM ALLEVATO DIANE L. BATHOATE WYATT HART JOE SOTO DAVID M. SWERDLIN The City Council of San Juan Capistrano will meet at 7:00 p.m. on November 16, 2004 in the City Council Chamber in City Hall, to consider: "Consideration of an Early Retirement Incentive Agreement with the Orange County Employees Retirement System" — Item No. D9 If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at City Hall by 5:00 p.m. on Monday, November 15, 2004 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Julia Silva, Human Resources Manager. You may contact that staff member at (949) 443-6321 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanluancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council-agendasasanivancapistrano.org. Meg Monahan, CMC City Clerk cc: SJC Classified Employees Association; SJC Professional & Management Employees Association; City Employees Associates*; Julia Silva, Human Resources Manager * Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future