City Auditor - City Recorder - Council Ordinance - 180692 PERS police and fire employee coverage contract

Oregon Public Service Retirement Plan Coverage Agreement

This agreement is made between the PUBLIC EMPLOYEES RETIREMENT BOARD (hereinafter referred to as “the PERS Board”) on behalf of the PUBLIC EMPLOYEES RETIREMENT SYSTEM (hereinafter referred to as “PERS”) and THE CITY OF PORTLAND (hereinafter referred to as “the City”) for the purpose of establishing new employer coverage for City employees pursuant to ORS 238A.070.

This agreement is effective January 1, 2007, subject to approval and signature by the City and by the PERS Board. In addition to the provisions of this agreement, Oregon Revised Statute Chapters 238 and 238A apply to the City and all eligible employees of the City.

As used in this agreement, the term “eligible employee” shall mean any City employee who meets the definition of “eligible employee” provided by ORS 238A.005(4) and who was hired and sworn in as a police officer or firefighter on or after January 1, 2007.

THEREFORE, the parties agree that:

(1) The City elects to adopt the Oregon Public Service Retirement Plan (hereinafter referred to as “OPSRP”) Pension Program and the OPSRP Individual Account Program (hereinafter referred to as “IAP”) as the retirement plan for its eligible employees. The City understands that adoption of the OPSRP Pension Program and IAP is irrevocable. The OPSRP Pension Program and IAP are composed of ORS Chapter 238A and related administrative rules. The Oregon Legislature may in the future amend the OPSRP Pension Program or IAP by adding to or amending Chapter 238A. The PERS Board may amend the OPSRP Pension Program or IAP by adding to or amending the related administrative rules. The City agrees to comply with the OPSRP Pension Program and IAP and any additions or amendments to the programs.

(2) Notwithstanding section 1 of this agreement, the City shall provide coverage under the Oregon Public Employees Retirement System (hereinafter referred to as “238 Program”) for any employee hired by the City as a police officer or firefighter on or after the effective date of this agreement, if such employee is a 238 Program member as of the employee’s date of hire and if such employee is eligible to continue to accrue benefits under the 238 Program. The City understands that adoption of the 238 Program is irrevocable. The 238 Program is composed of ORS Chapter 238 and related administrative rules. The Oregon Legislature may in the future amend the 238 Program by adding to or amending Chapter 238. The PERS Board may amend the 238 Program by adding to or amending the related administrative rules. The City agrees to comply with the 238 Program and any additions or amendments to the plan.

(3) The City shall provide OPSRP Pension Program coverage for all eligible employees not described in section 2 of this agreement who establish membership in the OPSRP Pension Program pursuant to ORS 238A.100. Credit toward the requirements of ORS 238A.100 shall be granted only for services provided to the City on and after the effective date of this agreement.

(4) For the OPSRP Pension Program, the City shall have the initial employer contribution rate of 11.65 percent of salary, as defined in ORS 238A.005, for its eligible employees. The City understands that employer contribution rates are subject to change based on periodic PERS actuarial valuations or as directed by the PERS Board pursuant to ORS 238A.220.

(5) The City shall provide IAP coverage for all eligible employees who establish membership in the IAP pursuant to ORS 238A.300. Credit toward the requirements of ORS 238A.300 shall be granted only for services provided to the City on and after the effective date of this agreement.

(6) For the IAP, there is a required employee contribution, currently six (6) percent, pursuant to ORS 238A.330. The City shall pay the employee contribution to the IAP for all eligible employees until such time as the City provides notice to PERS pursuant to ORS 238A.335(3) of its intent to cease payment of the employee contribution to the IAP.

(7) In addition to the employee contribution to the IAP, the City shall pay an employer contribution to the IAP for all eligible employees, pursuant to ORS 238A.340. The employer contribution to the IAP shall be three (3) percent.

(8) The City understands that once this agreement is in effect the City must continue to provide OPRSP Pension Program, 238 Program, and IAP coverage for all current and future eligible employees. In the event the City has no eligible employees in the future the City shall still be required to make contributions necessary to fund any unfunded liability for OPSRP Pension Program or 238 Program benefits, as determined by the PERS Board. These obligations shall be binding on the successors and assignees of the City.

(9) A participating employer must be a “public employer” as defined by ORS 238.005(17) and a governmental agency or instrumentality as defined in Internal Revenue Code §414(d). The City warrants that it presently is a public employer and a governmental agency as defined above. If on a future date the City for any reason fails to meet the definition of ORS 238.005(17) or IRC §414(d), the City shall be required to terminate OPSRP Pension Program, 238 Program, and IAP membership as of that date. In the event of any termination the City shall continue to make contributions necessary to fund any unfunded liability for OPSRP Pension Program or 238 Program benefits, as determined by the PERS Board.

(10) By virtue of this coverage agreement, PERS assumes no contractual obligations of the City toward any employee, other than the responsibility to administer benefits funded by the City as specifically provided for in this coverage agreement.

(11) The parties agree that if any term or provision of this agreement is declared by a court of competent jurisdiction to be illegal or in conflict with any law, or if any part of this agreement becomes in conflict with any law, the validity of the remaining terms and provisions shall not be affected, and 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 Portland, this __________ day of _____________, 2006.

By___________________________________________________________

Tom Potter, Mayor

City of Portland

For the Oregon Public Employees Retirement System this _____________day of _____________, 2007.

By_______________________________________________________________
Paul R. Cleary, Executive Director

Oregon Public Employees Retirement System

For the Oregon Public Employees Retirement Board this _____________ day of _____________, 2007.

By_______________________________________________________________
Michael Pittman, Chair

Oregon Public Employees Retirement Board

Approved as to form_________________________________________________

Assistant Attorney General