Resolution Number 03-07-01-03RESOLUTION NO. 03-07-01-0 3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, APPROVING ENHANCED RETIREMENT
BENEFITS FOR THE EXECUTIVE EMPLOYEES AND MEMBERS OF THE
MANAGEMENT EMPLOYEES ASSOCIATION THROUGH THE ORANGE
COUNTY EMPLOYEES RETIREMENT SYSTEM
WHEREAS, The City of San Juan Capistrano, as a plan sponsor, provides retirement
benefits for full-time employees through the Orange County Employees Retirement System
(OCERS); and,
WHEREAS, OCERS was created on January 1, 1945 and is formed under the provisions
of the County Retirement Act of 1937 (1937 Act); and,
WHEREAS, underthe provisions of the 1937Act, OCERS provides similar benefiltstoTier
1, Tier 2, General and Safety members regardless of the plan sponsor; and,
WHEREAS, California Government Code §31678.3 allows OCERS to provide varying
benefit formula plans to plan sponsors based on the plan sponsor's desire to provide
differing benefits to their employees; and,
WHEREAS, the City's Executive Employees and the members of the Management
Employees Association have negotiated to enhance their retirement benefit formula to the
2.7% @ 55, as set forth in California Government Code §31676.19, with the measuring
period set as the average three highest years of salary, as set forth in California
Government Code §31462, for purposes of calculating retirement benefits, effective July 1,
2003;and,
WHEREAS, these employees have agreed to fund the increased cost of retirement
benefits to the City for the enhanced retirement benefit beginning July 1, 2003 (Exhibit A
and B).
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan
Capistrano does hereby
Agree to provide retirement benefits to the Executive Employees and the members
of the Management Employees Association under the 2.7% at 55 benefit formula,
as set forth in California Government Code'31676.19, with the measuring period set
as the average three highest years of salary, as set forth in California Government
Code'31462, effective July 1, 2003.
07-01-2003
2. Agree to fund the enhanced retirement benefit forthe Executive Employees through
a payroll deduction of 7.27% of base salary.
3. Agree to fund the enhanced retirement benefit for the members of the Management
Employees Association through a payroll deduction of 3.04% of base salary.
PASSED, APPROVED, AND ADOPTED this I st day of July 2003.
ATTEST:
R. MONAHAN, CITY CLERK
STATE OF CALIFORNIA
COUNTY OF ORANGE )ss.
CITY OF SAN JUAN CAPISTRANO
1, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do
hereby certify that the foregoing Resolution No. 03-07-01-03 was duly adopted by the City
Council of the City of San Juan Capistrano at a regular meeting thereof, held the I st day of
July 2003, by the following vote:
AYES: COUNCIL MEMBERS: Hart, Bathgate, Swerdlin, Soto and Mayor Gelff
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
MONAHAN, City Clerk
07-01-2003
07-01-2003
MEMBERSHIP
Lynette Adolphson, Eric Bauman, Karen Crocker, Conrad David, Douglas Durnhart,
Linda Evans, Jack Galaviz, Eric Joseph, Meg Monahan, Mechelle Lawrence, Dan
McFarland, Diane Regier, Cristi Silverberg, Kathleen Springer, Jill Thomas.
San Juan Capistrano
Management Employees Association
June 13, 2003
Mr. George Scarborough
City Manager
City of San Juan Capistr-ano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Dear Mr. Scarborough,
During ouron-going negotiations fora successor Memorandum of Understanding forfiscal
year 2003-2004, there was discussion regarding enhancing our refirement benefitsto bring
them more closely to those of PERS. Several options were discussed that would enhance
the OCERS benefit that included a retirement factor of 2.7% at age 55 based on the
average of the highest three years of service.
The Management Employees Association reviewed the proposal and unanimously agreed
to request implementation of the 2.7% at 56 benefit with all increased costs to be bome by
the employee as a deduction from their pay. The City and the association have reached
tentative agreement on this matter.
.Because this benefit is viewed as a major improvement in our retirement program, the
association requests that this matter be presented to the City Council for approval prior to
the completion of our negotiations. If you have any questions, please contact me.
Sincerely,
Daniel W. McFarla
President
EXHIBIT A
Memorandum June 18, 2003
TO: Honorable Mayor John S. Gelff
FROM: San Juan Capistrano Executive Employees
SUBJECT: Enhanced Retirement Benefits (OCERS)
The Executive Employees of the City of San Juan Capistrano are requesting the
approval of an enhanced retirement benefit through the Orange County
Employees Retirement System (OCERS). The benefit formula requested is a
factor of 2.7% at 55 based on the average three highest years of salary. OCERS
actuarial valuations have calculated the increased cost of providing this benefit to
be 7.27% of base salary.
The Executive Employees agree to fund the increased cost of the retirement
benefit through a payroll deduction of 7.27% of base salary, effective July 1,
2003 and are requesting the City Council adopt a resolution indicating as such to
OCERS.
Juii Silva
int City Manager
William Huber
Engineering & Building Director
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AmyAmir1ni--
Public Works Director
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cc: Personnel Manager
CAMyFfles�GENERALN-MEMOGEONPD
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Cydthia L. Russell
Administrative Services Director
Tom Tomlinson
Planning Services Director
Al King, Jr.
Community Services Director
EXHIBIT B