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Res 1519 - Agrmt with PERS ,.--, COUNCIL BILL NO. 1939 RESOLUTION NO. 1519 A RESOLUTION AUTHORIZING THE MAYOR TO SIGN AN AGREEMENT WITH THE PUBLIC EMPLOYEES RETIREMENT BOARD FOR INTEGRATION OFTHE EXISTING CITY RETIREMENT PLANS INTO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS). WHEREAS, ORS 238.680 provides for the integration of certain public employee retirement programs into the Public Employees Retirement System (PERS) whenever two- thirds of the eligible public employees, through the City Council, apply for membership; and WHEREAS, a financial and actuarial investigation of the proposed integration has been made; and WHEREAS, the City Council has determined that it is in the best interests of the City to integrate its existing retirement programs into PERS; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: SECTION 1. That the Mayor is authorized to sign, on behalf of the City, a Contract of Integration with the Public Employees Retirement Board in substantially the same form as the document attached hereto as Exhibit n A n which is by this reference incorporated herein. APprovedastoformY).~~ 11-5-'7'6 City Attorney Date APPROVED: November 9, 1998 Passed by the Council Submitted to the Mayor November 10, 1998 Approved by the Mayor November 10, 1998 Filed in the Office of the Recorder ATTEST: ~ .~ Mary~ant, City Recorder City of Woodburn, Oregon November 10, 1998 Page 1 - COUNCIL BILL NO. 1939 RESOLUTION NO. 1519 ~.... .....-.--.--... ow .. EXHIBIT It Page -L- of If. CONTRACT OF INTEGRATION This contract is made between the PUBLIC EMPLOYEES RETIREMENT BOARD (hereinafter referred to as the "Board") on behalf of the PUBLIC EMPLOYEES RETIREMENT SYSTEM (hereinafter referred to as "PERS") and the CITY OF WOODBURN (hereinafter referred to as the "CITY"), for the purpose of integrating the Retirement Plan for Employees of City of Wood bum, Oregon (Pacific Life Account # G-9549.00.0001), and the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust (leMA Account # 109103), (hereinafter referred to as the "previous plans"), as maintained on behalf of the eligible employees of the CITY into PERS, pursuant to the provisions ofORS238.680. This contract is effective November 1, 1998, but shall have no effect until: (A)No less than two-thirds of the current eligible employees of the CITY who participate in the previous plans have duly approved said integration pursuant to ORS238.680. Two-thirds of the current eligible employees of the CITY did approve such integration in September, 1998. (B)The contract has been approved by the CITY and by the Board. THEREFORE, the parties agree that: (l)Definitions for purposes of this contract: The terms "creditable service" and "retirement credit" have the same meanings as defined by ORS238.005(4) and 238.005(10) respectively. "Eligible employee" means all employees of the CITY who meet the PERS eligibility requirements ofORS 238.015 except the following employees of the CITY, who shall remain participants in the previous plans. Brown, John C. Morrison, Dean N. Effective November 1, 1998, the CITY will begin participation in PERS for all eligible employees who participated in the previous plans, and who will become PERS members after satisfaction ofPERS membership eligibility criteria as defined in ORS 238.015. An employee shall be considered eligible for purposes of this contract if the employee participated in the previous plans as of October 31, 1998. In addition to the provisions of this contract, Oregon Revised Statute 238 applies to all employees. For eligible employees who participated in the previous plans as of the effective date of this contract, retirement credit under PERS shall include all years and months of plan membership credited in the previous plans. The CITY's previous plans required a six month waiting period before participation started in the previous plans. Eligible employees can purchase this waiting time, pursuant to ORS 238.125. For purposes of this purchase, the employee contribution rate shall be considered to be 6% of subject salary; the employer contribution rate shall be considered to be the rate in effect at the time of purchase. The subject salary to be used for this purchase shall be the employee's actual six-month waiting time salary. The City will provide PERS with a schedule of employees eligible for the six- month waiting time purchase and the above mentioned salary data within 60 days after the date on which this contract is signed by the Board. Except for the previous plans' waiting time service that can be purchased under section ...-~"-,,,. "-'~~--.. ~--,''''-'--~'-' .-. . -~---- EXHIBIT /I Page -6- of 'f- =- (4) of this contract, the CITY agrees to provide prior service credit for benefit~ pursuant to ORS 238.225, for all continuous emolovment service prior to January 1, 1973, except for the following employees oCtile CITY granted prior service credit according to Aooendix A of this contract. The CITY will provide PERS with a schedule of employees eligible for prior service credit including the beginning and ending dates of this benefit credit. The schedule will also include an explanation of anv breaks in employment service. such as leaves without pay. that would result in no prior service credit. Eligible employees shall receive one year of prior service credit for each 12 months prior to January 1, 1973, or alternative dat~ for specific employees listed in this seGtion Appendix A. Periods in excess of six months shall be considered as one year. Nothing in this contract, nor any action taken under this contract, shall reduce or impair the benefits which former employees of the CITY, who left CITY employment and who are currently receiving benefits from the previous plans, would have received had the integration not been effected. Former employees receiving retirement benefits from the CITY shall continue to receive benefits from the previous plans. Any benefits due to former employees from the CITY as of November 1, 1998, and benefits due to the current employees named in (1)(b) of this contract, shall remain the liability of the previous plans. The Board has caused a financial and actuarial investigation of this integration to be made, the cost of which has been borne by the CITY or by the previous plans. Such investigation determined the present actuarial value of projected benefits and of accrued benefits for former employees who have terminated with a vested interest, current assets, and any unfunded liability of the previous plans. The CITY will furnish PERS with payroll and personnel information to establish salary history, years of service, breaks in service. member account balances, and other such information deemed to be necessary by the Board to integrate the previous plans into PERS, within 60 days after the date on which this contract is signed by the Board. The CITY agrees that it is solely responsible to provide written notice to all eligible employees participating in the previous plans, of the transfer, and of the proposed integration into PERS. The CITY will transfer cash assets as allowed by the previously established plans to its account in PERS and provide a timetable for the transfer of the remaining assets not later than 60 days after the date on which this contract is signed by the Board. The members' accounts will be first credited from any transferred assets received by PERS. Assets credited to member accounts by PERS as a result of the transfer will include the value of the eligible employees' Pension Credit as of October 31, 1998. The assets remaining after member accounts are fully credited will constitute the employer account. Earnings will accrue on the employer account from the date the asset transfer occurs. PERS individual member accounts for eligible employees will be established not later than ....--- ..~>~"""___~~_.'.c"..___.'._ ..,.,c,.'O'. ,..____ EXHIBIT 19 Page -L of ~ 60 days after the transfer date. The individual accounts shall be considered to have been established as of November 1, 1998, and will be treated as a PERS member account for all purposes after that date. The CITY will transfer all required PERS contributions for the period November 1, 1998, and after, within 60 days after the date on which this contract is signed by the Board. Individual member earnings for 1998 shall be prorated from the date the asset transfer occurs. The CITY will transfer approximately Six Million Nine Hundred Thousand Dollars ($6,900,000) in previous plans assets, in no more than five annual installments. If, as of December 31 of each year, the employers reserve account has a negative balance, the employers reserve account will be charged interest computed at the earnings rate adopted annually by the Board for employer reserve accounts. The initial employer contribution rate pursuant to ORS 238.225 will be 20.83 percent of the employees' salary within the meaning ofORS 238.005(11). The CITY's employer contribution rate does not reflect the transfer of assets as prescribed above. Reductions in the employer contribution rate as a result of asset transfers shall be made annually as of January 1 following the installment transfers. The rate reduction will be 0.14 percent for each $100,000.00 transfer. The employee contribution rate will be 6 percent, pursuant to ORS 238.200. The CITY will assume or pay the employee contribution, pursuant to ORS 238.205(4), of salary for those eligible employees covered by a written employment policy or agreement legally obligating the CITY to assume or pay the employees' 6 percent contribution. Written notice of the employment policy or agreement shall be provided to the Board pursuant to ORS 238.205(6). Eligible employees, except part-time employees, are granted the unused sick leave benefit ofORS238.350 as ofthe effective date of this contract. The CITY shall define which employees are included in the part-time employee class. The CITY agrees to eventually contract to provide Public Employees Retirement System membership to all employees of the CITY who have not become PERS members as of the effective date of this contract. PERS assumes no contractual obligations of the employer toward any employee, other than the responsibility to provide benefits as specifically provided for in this contract of integration. The parties agree that if any term or provision of this contract is declared by a court of competent jurisdiction to be illegal or in conflict with any law, or if any part of this contract becomes in conflict with any law, the validity of the remaining terms and provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the contract did not contain the particular term or provision held to be invalid. For the CITY OF WOODBURN, this By day of <MONTH>. 199_. NANCY A. KIRKSEY, MAYOR CITY OF WOODBURN For the Oregon Public Employees Retirement System this _ day of <MONTH> ,199_. . ----.------ EXHIBIT /1 Page --!::L of If- By Fred J. McDonnal, Executive Director OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM For the Oregon Public Employees Retirement Board this _ dayof <MONTH> , 199_, By Emile M. Holeman, Chairperson OREGON PUBLIC EMPLOYEES RETIREMENT BOARD Approved as to form Assistant Attorney General APPENDIXA List of emplovees with alternative dates eliIlible for Drior service credit: lsmael Salinas Social Security Number: 544-46-8270 Hire/Prior Service Date: July 19. 1971 PERS Eliffibility Date: Julv 1. 1976 Waitiny Time: January 1, 1976 Donald L. Eubank Social Security Number: Hire/Prior Service Date: PERS Elivibility Date: Waitin~ Time: 540-58-4834 September 25. 1972 July 1. 1978 January 1, 1978 Paul E. Null Social Security Number: Hire/Prior Service Date: PERS Eligibility Date: Waitin~ Time: 564-64-9475 February 19. 1973 November 1. 1979 May 1, 1979 James J. See lev Social Security Number: Hire/Prior Service Date: PERS Eligibility Date: Waiting Time: 543-58-3564 December 15. 1975 November 1. 1979 May 1, 1979 Rogelio Moralez Social Security Number: Hire/Prior Service Date: PERS Eligibility Date: Waiting Time: 543-64-6942 Julv 1. 1980 November 1. 1991 May 1, 1991 Giriesh S. Tiwari Social Security Number: Hire/Prior Service Date: PERS Elivibility Date: Waitin~ Time: 518-50-2129 March 24. 1975 Julv 1.1991 January 1, 1991 Norman R Shields Social Security Number: Hire/Prior Service Date: PERS Eligibility Date: 585-60-8390 November 15. 1982 June 1. 1997 1"'-~ "_.".....~.....~._.....____.~.M__..~'"'_~,"_"~A__....______._..-__--..