1136RESOLUTION NO. 1136
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING
HILLS, CALIFORNIA, UPDATING THE CITY'S PENSION PROGRAM
CONSISTENT WITH ASSEMBLY BILLS 34.9 AND 197 AND AMENDING
THE EMPLOYEE HANDBOOK "DI PERSONNEL POLICY MANUAL
WHEREAS, on September 12, 2012, Assembly Bills 340 and 197 were enacted,
imposing mandatory pension reforms for all public agencies in the State; and
WHEREAS, certain reforms took effect as an operation of law on January 1, 2013, the
date that _assembly Bills 340 and 197 became effective; and
WHEREAS, such legislation imposes certain changes that require the City to update its
Employee Handbook and Personnel Policy Manual to maintain consistency with State law.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Rolling
Hills does hereby find, deterr:ine and resolve as follows:
SECTION 1. The City Council of the City of Rolling Hills approves and adopts the
amendments to the City's Employee Handbook and Personnel Policy Manual, which are
incorporated by reference as though fully set forth herein and attached hereto as Exhibit "A."
SECTION 2. Each and every one of the findings and determinations in this Resolution
are based on the competent a ki sui stu ,::ial ev;d� � nr add orad and v rittten, contained in the
entire record relating to the Resolution. "The- uaid determinations constitute the
independent findings and determinations of the City Council in all respects and are fully and
completely supported by substantial evidence in the record as a whole.
SECTION 3. All summaries of information in the findings; which precede this section,
are based on the substantial evidence in the record. The absence of any particular fact from any
such su: wi.:ary is not an indication that a particular finding is not based in part on that fact.
SECTION 4. The City Clerk is directed to certify the adoption of this Resolution; record
this Resolution in the book of the City's original resolutions; and make a minute of the adoption
of the Resolution in the City's records and the minutes of this meeting.
SECTION 5. 'This Resolutioza will remain effective until superseded by a subsequent
resolution.
PASSED, APPROVED, AND ADOPTED this 14th day of January, 2013.
3Ai t LrULD.
MAYOR
ATTEST:
AMWK
AN MAINIAIII
CITY CLERK
APPROVED AS TO FORM:
Michael Jenkins, City ttorney
By: }
Resolution No. 1136 -1-
The foregoing Resolution No. 1136 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING
HILLS, CALIFORNIA, UPDATING THE CITY'S PENSION PROGRAM
CONSISTENT WITH ASSEMBLY BILLS 340 AND 197 AND AMENDING
THE EMPLOYEE HANDBOOK A N D PERSONNEL POLICY MANUAL
was approved and adopted at a regular meeting of the City Council on the 14th day of January,
2013 by the following roll call vote:
AYES: Councilmembers Heinsheimer, Hill, Lay, Pernell and Mayor Black.
NOES: None.
ABSENT: None.
ABSTAIN: None.
HEIDI LUCE
DEPUTY CITY CLERK
Resolution No. 1136 -2-
C
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11
CHAPTER VI
BENEFITS
Section 1. Retirement Plan:
Exhibit A
(a) The City is a member of the Public Employees Retirement System
(PERS). Eligible Regular employees of the City hired prior to
December 31, 2012 are enrolled in the 2%@60 retirement program.
The City pays 100% of both the employee and employer portion of the
retirement program for all Regular employees hired before December
31, 2012. Eligible Regular employees of the City hired on or after
January 1, 2013 are enrolled in the 2%@62 and 2.5%@67 retirement
program consistent with State Assembly Bills 340 and 197 enacted
September 12, 2012 and City Resolution No. 1136. All conditions of
PERS apply to all eligible Regular employees of the City of Rolling
Hills.
(b) The pensionable compensation used to calculate the defined benefits
paid to employees hired after December 31, 2012 will not exceed the
maximum amount specified in the federal retirement system (United
States Code Title 42 § 430(b), as may be amended from time to time);
as adjusted annually based on changes to the Consumer Price Index.
for all Urban Consumers.
(c) Regular employees hired after December 31, 2012 pay 100% of the
employee portion of the retirement program or 50% of the "normal
cost," defined as that portion of the present value of projected benefits
under the defined benefit plan that are attributable to the current year
of service (also known as the "Member Contribution Rate as a
percentage of payroll"), which ever is higher. Exercising its authority
to implement the provisions of section 414(h)(2) of the Internal
Revenue Code (IRC), all employee's payments for the retirement
program are tax deferred. For employees hired after December 31,
2012, the City is prohibited from making contributions greater than the
amount specified in the federal retirement system.
(d) The final compensation is the average full-time monthly pay rate for
the highest 36 consecutive months. If the service is coordinated with
Social Security, the final compensation will be reduced according to
State law ($133.33 as of 7/25/11). "Compensation" is defined as the
normal monthly rate of pay or base pay for the employee for services
rendered on a full-time basis during normal working hours, pursuant to
the City's pay schedule. It does not include pay for unused sick leave
or time off or overtime pay.
(e) Employees are permitted to replenish their Public Employees
Retirement Account (PERS) out of their own funds, if they have
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chosen to remove those funds from PERS following termination of
previous employment.
(f) All employees, full and part-time, are required to participate in the
Social Security System
(g) Newly retired former employees, or employees of another PERS
member, are required to sit out for at least 180 days before returning
to work for the City to avoid forfeiture of their retired status. Such
employees also cannot serve more than 960 hours in a calendar year.
This subsection shall not apply to employees hired to fill a critically
needed position, where the appointment has been approved by City
Council in a public meeting.
(h) Any public official or employee who is convicted of a felony related to
performance of his or her official duties, related to seeking an elected
office or appointment, in connection with obtaining benefits, or
committed against a child who the official or employee has contact
with as part of his or her official duties, forfeits all pension benefits
earned or accrued after the date of the conviction.
Section 2. Health and Life Insurance:
(a) The City maintains Worker Compensation Insurance for work-related
injuries. Group term life, health insurance, prescription drug, dental
insurance and vision insurance is also provided for all Regular
Exempt and Non -Exempt full-time employees who have successfully
completed their six month probationary period.
(b) The City of Rolling Hills provides 100% of the single -party premium for
health, dental and vision insurance, inclusive of prescription drug
coverages within the health plans, of each Regular employee who has
successfully completed their probationary period. The City will pay
80%1 of the premium for the eligible dependents of Regular
employees following successful completion of the Regular employee's
probationary period.
(c) Dental benefits become effective after 6 months of employment.
Vision benefits become effective after 3 months of employment.
Other health benefits become effective immediately upon
employment.
Information describing coverage is available from the Finance
Department.
For existing Regular employees who have completed their six month probationary period prior to January 1, 2009, the
employee will pay 2% per year of the dependent health, dental and vision premium up to a total or20% over 10 years (in 2019).
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(d) Through the implementation of an IRS compliant Section 125 plan,
the City will provide Regular employees with the ability to withhold
pre-tax income from his/her salary to pay his/her portion of insurance
premiums.
Section 3. Credit Union:
Section 4
Section 5
(a). Applications are available to all employees for membership in the F &
A Federal Credit Union. Automatic payroll deductions may be
arranged.
Deferred Compensation and Employment Lonqevitv Plan:
(a) The City of Rolling Hills offers an employee funded deferred
compensation program. Applications are available in the Finance
Department.
(b) According to the following schedule, effective July 1, 2009, the City of
Rolling Hills will match employee contributions up to the IRS limit.
Years of service
0-1.99
2-2.99
3-5.99
6-8.99
9-11.99
12-14.99
15+
Other benefits:
City match to employee's
contribution (up to _% of
salary)
0%
1%
2%
3%
4%
5%
6%
(a). The City provides single -party health coverage for its Regular
employee retirees through PERS. Heath plan options and terms of
the program are governed through the City's contract with PERS.
Regular employees hired after December 31, 2012 will be qualified to
receive single -party retiree health coverage from the City providing 1)
the Regular employee retirees from the City of Rolling Hills and 2) the
Regular employee. has been in the employment of the City of Rolling
Hills for a minimum of 5 consecutive, uninterrupted years.
(b). A surviving beneficiary of a current or former employee hired before
January 1, 2013 will receive benefits` through PERS, as appropriate to
individual circumstances. The benefits pertain to the employee's
designated survivor, benefits upon death of the employee/retiree,
military and VISTA service buy-back options and credit for unused
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sick leave. The terms of these benefits are specified in the City's
contract with PERS.
1
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exposure to a serious contagious disease, or for a medical, optical, or dental
appointment. Sick leave may also be taken to care for a member of the
immediate family who requires the attention of the employee. Sick leave shall
not be considered as a privilege which an employee may use at his/her
discretion, but shall be allowed only in case of necessity and actual sickness or
disability.
(a) Accrual: Employees shall accrue one day of sick leave (7.5 hours) with
full pay for each month of service (225 hours). Sick leave shall be
available for use the first day following the payroll period in which it is
earned. If the employee does not take the full amount of sick leave
allowed in any year, the amount not taken shall be accumulated from
year to year, to a maximum of 30 days.
(b) Minimum Use: The minimum charge against accumulated sick leave
shall be fifteen (15) minutes or multiples thereof. Approved sick leave
with pay shall be compensated at the employee's base rate of pay.
(c) Proof of Illness: The City Manager may require a physician's certificate.
(d) Notification: In order to receive compensation while absent from duty on
sick leave, the employee must notify the City Manager prior to, or within
45 minutes after the time set for the beginning of his/her regular duties.
The City Manager may request a certificate issued by a licensed
physician or other satisfactory proof of illness before sick leave is
granted or if the sick leave extends more than 3 consecutive days.
(e) Violations: Violation of sick leave privileges may result in disciplinary
action when in the opinion of the City Manager, the employee has been
excessively absent or has abused such privileges. Employees who do
not call in within 45 minutes of the start of their assignment may be
denied use of sick leave.
(g) Sick Leave Pavout: The City does not pay accrued sick leave to an
employee upon retirement.
(h) Use of Familv Sick Leave: Use of family sick leave shall be limited to
half the yearly sick leave entitlement in any one (1) year period. The
amount of sick leave available is limited to what the employee accrued
prior to utilizing sick: leave for this purpose. Sick leave taken for this
purpose shall be allowed only in the case of necessity of and actual
illness of an employee's child, parent, or spouse or domestic partner as
determined by the City Manager. In order to receive sick leave with pay
for this purpose, the employee shall notify the City Manager prior to or
within two (2) hours after the start of the employee's scheduled work
shift. The City Manager may, if he/she deems necessary, require the
employee to file a Physician's Certificate (regarding the illness of the
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