RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION TERMINATING THE APPLICABILITY OF GOVERNMENT CODE SECTION 31676.16 EFFECTIVE MARCH 12, 2005 TO SPECIFIED GENERAL MEMBERS OF THE COUNTY RETIREMENT SYSTEM, MAKING GOVERNMENT CODE SECTION 31676.14 APPLICABLE TO SPECIFIED GENERAL MEMBERS OF THE COUNTY RETIREMENT SYSTEM EFFECTIVE MARCH 13, 2005 AND MAKING GOVERNMENT CODE SECTION 31621.9 APPLICABLE TO
SAN MATEO COUNTY

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, pursuant to Resolution 066003, General members' benefits for those members in Plan 1, Plan 2 or modified Plan 2 (also known as Plan 4) are presently calculated in accordance with Government Code section 31676.16; and

WHEREAS, Government Code section 31678.2 permits this Board to adopt a resolution specifying that any section of the County Employees Retirement Law ("CERL") prescribing a formula for calculation of retirement benefits be applicable to service credit earned on and after the date specified in the resolution, which date may be earlier than the date of the resolution, and permits this Board and the employee representatives to enter into a memorandum of understanding that requires members of the employees retirement association to pay all or part of the contributions by a member or employer, or both, that would have been required if the section or sections specified in this resolution as adopted by the Board had been in effect during the period of time designated in the resolution; and

WHEREAS, this Board desires to terminate the applicability of Government Code section 31676.16 to those active and deferred members in Plan 1, Plan 2 or modified Plan 2 effective March 13, 2005 and further desires to have Government Code section 31676.14 be applicable to all future and past general service back to the date of entry into said Plan with the County of San Mateo for only those General active and deferred members in Plan 1, Plan 2 and modified Plan 2 effective March 13, 2005; and

WHEREAS, representatives of this Board have met and conferred with representatives of recognized General employee bargaining groups about proposed changes to the retirement benefits provided to County of San Mateo employees, and the Board and the employee representatives have executed memoranda of understanding agreeing to the changes to retirement benefits and required contributions with all employee organizations representing employees in the general retirement plan and this Board has adopted resolutions agreeing to the changes to the retirement benefit and required contributions with all unrepresented employees; and

WHEREAS, as set forth in Resolution 066003, the memoranda of understanding agreeing to the changes to retirement benefits with the represented General employees and the resolutions covering the unrepresented General employees provided that this Board will terminate the applicability of Government Code section 31676.16 , effective March 2005, to those active and deferred members in Plan 1, Plan 2 or modified Plan 2 and will implement for those members Government Code section 31676.14, if legislation authorizing a 1/120 employee contribution design is enacted that is applicable to Government Code section 31676.14; and

WHEREAS, Section 31621.9 of the Government Code, which provides that for specified counties adopting Section 31676.14, the normal rates of contribution for General members shall be that which will provide an average annuity at age 55 equal to 1/120 of the final compensation, was amended to included San Mateo County, may be made applicable by adoption of this resolution; and

WHEREAS, pursuant to Government Code sections 7507 and 31516, enrolled actuaries employed by Mercer Human Resource Consulting performed valuations and provided a statement of the actuarial impact upon the future annual costs of the increase in retirement benefits associated with the implementation of Government Code section 31676.14 and those future annual costs were made public at the meeting of the Board of Supervisors on May 13, 2003; and

NOW THEREFORE, IT IS HEREBY DETERMINED AND RESOLVED THAT:

A. Effective March 12, 2005, Government Code section 31676.16 shall no longer be applicable to those General active and deferred members in Plan 1, Plan 2 and modified Plan 2.

B. Effective March 13, 2005, Government Code section 31676.14 will become applicable to all future and past general service back to the date of entry into said Plan with the County of San Mateo for only those General active and deferred members in Plan 1, Plan 2 and modified Plan 2 who are covered by the memoranda of understanding or resolutions entered into for all represented and unrepresented General employees, and who retire after March 12, 2005.

C. Pursuant to authority vested in the Board by Government Code section 31678.2 and the memoranda of understanding or resolutions entered into for all represented and unrepresented General employees, Active General members in Plan 1, Plan 2 and modified Plan 2 will share in the cost of the implementation of section 31676.14 to all future and past general service credit through increased retirement contributions by way of payroll deductions as follows:

REQUIRED COST SHARING MEMBER CONTRIBUTIONS

Effective August 29, 2004, these employees shall contribute an additional 1% of compensation earnable as defined in SamCERA regulations for a total of 2%.

Effective March 13, 2005, these employees shall contribute an additional 1% of compensation earnable as defined in SamCERA regulations compensation earnable as defined in SamCERA regulations for a total of 3%.

These cost sharing contributions will not be reduced by employer pick-up of employee retirement contributions. These cost sharing contributions will not be reduced for employees with 30-years of service. In all other ways, these cost sharing contributions are to be treated in the same manner and are subject to the provisions in the CERL and SamCERA regulations as other employee contributions. These cost sharing contributions will be refunded at the time of retirement to those qualified general members who retire prior to March 12, 2005, and elect to terminate the applicability of Government Code section 31676.16 and to retain the applicability of Government Code section 31676.1 to them in respect to all of their service credit in accordance with paragraph D below.

D. Prior to March 12, 2005, persons who are active General employees of the County of San Mateo prior to August 17, 2003, and who will receive a lower benefit under Government Code section 31676.16 or are deferred General Members of the San Mateo County Employees Retirement Association as of August 17, 2003, and who will receive a lower benefit under Government Code section 31676.16, may elect at the time of retirement by irrevocable written notice filed with the Board of Retirement to terminate the applicability of Government Code section 31676.16 and to retain the applicability of Government Code section 31676.1 to them in respect to all of their service credit, whether accrued before or after August 17, 2003. For those qualified members who do make this election, they shall be entitled to a return of the cost sharing contributions set forth in paragraph C above.

E. Government Code section 31676.16 shall be applicable prospectively to all General employees who are not in Plan 3 and who were first employed by the County of San Mateo on or after August 17, 2003, and such persons may not elect to have Government Code section 31676.16 made inapplicable to them as to any period of employment commencing on or after August 17, 2003.

F. Effective March 13, 2005, Section 31621.9 of the Government Code shall be applicable to San Mateo County and the normal rates of contribution for General members shall be that which will provide an average annuity at age 55 equal to 1/120 of the final compensation.

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