There is hereby established a supplemental retirement system called PARS.

PARS is a private retirement plan administered by Public Agency Retirement Services; and the PARS benefit is described in the Plan document which is on file in the City Clerk’s Office.

Background:

The employee organization did not take a pay grid adjustment for the period starting January 25, 2004. The amount of 2.32% from January 25, 2004 to June 30, 2004, and another 2.32% from July 1, 2004 to the start of a new agreement (for a total of 4.64% carried forward) was used to fund the PARS benefit. If, in the future, the amount of City contribution towards the plan exceeds the 4.64%, the employee organization agrees that the employee organization will fund the plan by a reduction in the future pay grids of employees covered by the Memorandum of Understanding, to be discussed by meet and confer process. Further costs for the administration of the plan, such as actuarial studies and other expenses will be paid for from the plan itself and not by the City. The employee organization further agrees that when conducting future salary surveys, the Torrance salaries will be increased by a total of 4.64% for comparison purposes, along with any future pay adjustments, either up or down. There is a possibility of a grid adjustment downward in the event of underfunding of the PARS plan.

NOTE: The IT Specialists previously received a pay adjustment of 4.64% before being represented by TPSA, so
this should be taken into consideration for future salary surveys.

Any new classes moved into this agreement shall be subject to meet and confer for plan costing, surveys, and other aspects of this agreement.

To comply with the provision of Public Employees’ Pension Reform Act of 2013 (PEPRA), PARS will no longer be available to employees hired or promoted to the TPSA employee’s organization on or after January 1, 2013. In accordance with the provisions of the Public Employees’ Pension Reform Act (PEPRA), employees covered by this agreement hired on or after January 1, 2013, who do not qualify as “classic members” of PERS, shall be considered “new members” and shall be enrolled in the 2% at age 62 defined benefit formula with final compensation calculation period of three (3) consecutive years. Employees shall be responsible for fifty percent (50%) of the normal cost attributable to the applicable retirement formula.

Note: The definition of “classic member” or “new member” is established per the California Public Employees Retirement System (CALPERS).

At the time of retirement or separation, the provision of Section 4.3B (RHS) shall apply.