Loading...
HomeMy Public PortalAbout74-105 (11-19-74).. RESOLUTION N0. 74-105 RESOZUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN TFIE BOARD OF ADMINISTRATION OF TF~ PUBLIC EMPI,OYEES' RETIREMENT SYSTEM AIdD THE CITY COUNCII, OF TI~ CITY OF LYNW~OD WHEREAS, the Public Employees' Retirement Law permits the participation oY public a~encies and their employees in the Public Employees' Retire- ment System by the execution oP a contract, and sets forth the pro- cedure by which said public agencies may elect to subject themselves and their employees to amendments to said law; and Wf~~REAS, one of the stepe required in the procedure to amend this contract is the adoption by the legislative body of the public agency of a reso- lution ~iving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the changes pro- posed in said contract; and PIHEREAS, attached is a summary of the major provisions of the proposed plan; NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCII~ of the CITY OF I,YNWOOD gives, and it does hereby give, notice of intention to approve an amendment to contract between said CITY COUNCII, and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment and a si~mmary of the major provisions of the pro- posed change being attached hereto, marked Exhibits "A" and "B" and by this reference made a part hereoP. CITY COUNCIL OF THE CITY OF ZYNWOOD BY i ~ M yor e Mayor Title November 19, 1974 Date adopted and approved Ret. Form 122 ' • ' '~+f~ "'<. ;:, ' -:~- ~- ~d . ~.~~'.: , , .~~~, ;<~ ~~ 4 ~~ .. ',T,. ,,, . , . ~. ~ ~. EXHIBIT A AMENDI~TT TO CONTRACT BETVYEEN THE BOARD OF ADhffNIST~ATION PUBLIC EMPI,OYr;ES' RETIREtdENT SYSTEt~G AND THE r CITY COUNCIL OF THE CITY OF LYNWOOD The Boarcl of Administration, Public Employees' Retirement Systsm, hereinaYter referred to as Board acid the CITY GOUI~CII. of the CITY OF LYN1100D~ hereinafter re- ferred to as Public Agency, having entered into a contract under date of IvIay 7, 1946,. effective July 1, 1946, as amended effective November 1, 1951, February 1, 1954, August 1, 1959, December 1, 1964, and November 13, 1966~ and as provided by Chapters 170 and 316, Statutes of 1971, which provide for participation of Public Agency~ hereby agree as Pollows: A. Paragraphs 1 through 8 are hereby stricken £rom said contract as executed ePfective July 1, 1946, and are hereby replaced by the following paragraphs numbered 1 through 8 inclusive: 1. All words and terms used herein which are defined in the Public Employ- ees' Retirement Lav~ shall have the meaning as defined therein unless otherwise specifically provided. "2dormal retirement age" shall mean age 60 Yor miscellaneous members and age 50 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1946, making its employees as herein- after provided, members of said 5ystem subject to all provisions of the Public Employees' Retirement I,avr except such as apply only on elec- tion of a contracting agency and are not provided for herein and to all amendments to said Zaw hereafter enacted except such as by express pro- vision thereo~ apply only on the election of contracting agencies. 3. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local firemen (herein referred to as local saPety members~; b. Zocal policemen (herein referred to as local safety members~; c. Employees other than local sa~ety members(herein referred to as miscellaneous members~. The following employees shall be excluded from membership in said Retirement System: NO ADDITIOYdAI~ E7CCLUSION5 Ret. Form 702-1 ; 4. The fraction of final compeneation to be provided £or each year of credited prior a.nd cuz•rent service as a miscellaneous member shall be that provided in Section 21251.13 of said Retirement Zaw. 5• The Yollowing additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. The fraction of final compensation to be provided for each year of credited prior and current service as a local safety member shall be that provided in Section 21252.01 of the Retirement Law. b. Section 21380-7 (providing for allowances for survivors of inembers covered under the program upon death before retirement~. c. Section 21222.1 and Section 21222.2 (providing for increases in allowances to which the annual cost-oY-living provisions apply, payable for time commencing on the first day of the calendar month coinciding with or next Pollowing the ePfective date of this amendment to or on account of persons retired or members deceased prior to July l, 1971~. d. Section 21263 and 21263•1 (provid.ing upon the death oY a local safety member who has retired for service or disability for the continuation of the post-retirement survivor allowance to certain survivors). 6. Public Agency shall contribute to sai.d Retirement System as Yollows: a. With respect to miscellaneous members~ the public agency shall contribute the following percenta.ges of monthly salaries earned as miscellaneous members of said System: (1~ 1.01 percent until June 30, 1980 on account of the liability for prior service benefits. (2) 7.67 percent on account of the liability Por current service beneYits. (3) 0.75 percent on account of the liability for the 1959 Sur- vivors program. Ret. Form 702-2 '; ~~ ~5 ~ ~~ ~ ;~~" ~ ~ ~~ . , ` ` -~ >. ~ . ~:,~ ", .-.. ~ . ~. ~'~' ~ ~ ' (4~ 0.19 percent for ten years from the eYfective date of the amendment to provide the bene~its under 5ection 21222.1 of the Government Code. (5) A lump sum of $1,624.00 payable within 30 days of the effec- tive date of the amendment on account of the provisions of Section 21222.2 of the Government Code. b. With respect to local safety members, the public agency shall con- tribute the following percentages of monthly salaries earned as local safety members of said System: (1~ 0.084 percent until June 30~ 1978 on account oP the li~bility for prior service benefias. ~2~ 25.319 percent on account of the liability for current service benefits. (3~ 0.219 percent on account of the liability Por the 1959 Sur- vivors program. (4) 0.400 percent for ten years from the effective date of the amendment to provide the benefits under Section 21222.1 oY the Government Code. (5) A lump sum of $4,378.00 payable within 30 days of the eYfec- tive date of the amendment on account oP the provisons oP Section 21222.2 of the Government Code. c. A reasonable amount per annum~ as fixed by Board to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs oY special valuations or the period- ical investigation and valuation required by law. 7. Contributions requi.red by Public Agency and its employees shall be sub- jeet to adjustment by Board on account oY amendments to the Public Employees' Retirement I,aw~ and on account of the experience under the Retirement System, as determined by the periodical investigation and valuation required by said Retirement Law. Ret. Form 702-3 i 8. Contributions required of Public Agency arid its employees shall be ~y Public Agency to the getirement System within thirt Paid end of the period to which said contributions refer. y dayS aPter the 'than the correct amount of contributions is If ~~re or less adjustment shall be made in cor~nection ~ Paid for ariy period adjustments on account of errors in contr b tionsqrequire ofa~ys'~orr employee may be made by direct cash payments bet~veen the employee and Board, payments by Public Agency to Board may be made in the form op o~~a~hs, b~k checks, bank drafts, certified ehecks, money orders~ B• ~is amendment shall be attached to said contract anfl on the shall be efPective day of R'itness our hands.th~s • day of BOARD OF ADD~NIgTRATION PIIBLIC Eb1PI,0YEEg ~ 1~c,rIRE~NT SYSTEM CITY COIINCIZ OF THE CITY OF ZYN{y00D BY William E. Payne~ E~ecutive OfYicer BY « _ i., ':c~; Preaidi~ ~ ~'~:, ~.`°' Atte~i~ ~~,~ ~ ~ , ~*: :: ~;Ai~, v Clerk Ret. Form 702-4 CERTIFICATION OF GOVERNfNG.BODY'S ACTlON ~ hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the of the CITY COUNCII, Governfng Body CITY OF ZYNWOOD Name of f ub 1 i ~ q9ency) -• on November 19, 1974 (~ate) ~'-' aPPearing at Pa9P 177 -----._. Volume 19 of the (Minutes) (6fp~~~~}-~,.cords) of the CITY COUNCIL (Governing go~y) • ~ C ITY Cl.ERK -o-r ~~'Y' v'~ -t~he -8~o~rd PERS-qCT-12 (~~~~~~ Death After Retirement The death benefit is $500. This is in addition to any payments which might be made under an optional retirement benefit chosen by the member at retirement. One-half Continuance provides upon the death of a local safety member who has retired for service, or continuation of one-half the retirementdallowance~to~certaia survi•~ors. TERMINATION OF EMPLOYMENT Upon tex~nination of employment, an employee with at least 5 years of service may either leave his contributions with the System and receive, upon attaining retirement age, the retirement benefit he has earned, or he may withdraw his contributions (plus interest), thus terminating his membership in the System and receiving no retirement benefits. Except, (1) a member with less than 5 years of service shall not have the privilege of leaving his contributions with the System, but shall automatically have his contributions, plus intere~t, refunded upon termina`ion of employment, and (2) a member who is transferring to eaployment with another agency which is covered under the System shall not have the right of withdrawing his accumulated contributions. EMPLOYEE CONTRIBUTIONS Each member makes monthl}~ contribueions to the System which are ded~•cted from his salary. The rate of contribution (percentage of pay) is 9% of salary earned, exclusive ef overtime, on the siate this formula becomes effective. The employer also cantributes toward the cost of the benefits. The amoimt con- tributed by the employer for current seroice retirement benefits wi11, on the average exceed the cost to the employee. In addition, the employer bears the entire cost of prior service benefits, the industrial death and disability benefits. All contribution rates are subject to revision by the Board of Administration. , An employee becoming disabled for reasons not connected with his employn;-;it shali. be eligible for disability retirement provided he has at least S years of ser•,~:tce; such disability allowance is equal to 1.8% of final compensation for each yeaz -~f service, with a guarantee of 1/3 of such final compensation for most employees who have rendered at least 10 years of service. The "ordinary" disability retirement allowance shall under no circ~stances exceed the service retirement allowance which would become payable at age 60 if emvlovment could be ti ' DEATH BENEFITS con nued to that age. Death Before Retirement Basic Death Benefit This benefit is a refund of the member's accumulated contributions plus six months' salary provided he has been a member for six-years or more. For those who die before completing six years of inembership, the benefit is one month's salary for each year of membership plus refund of contributions. The salary referred to is that earned during the year preceding death. Prior service does not count toward this benefit. Indvstrial Death If death is service -connected in the ~udgment of the Industrial Accident Commission, a monthly income is paid to~the widow for life (or until remarriage) instead of the above basic death benefit. However, if she is also eligible for survivor benefits from Social Security because of the member's death, the State system benefit will be reduced by the amount of such Social Security so long as Social Security benefits are payable (usually until the youngest child reaches 18 and after the widow reaches age 62). The total, including Social Security, would be 50% of "final compensation". If death was caused by external violence or physical force, the toCal benefit (including Social Security) would be increased to the follow- ing percentages of "final compensation" so long as the widow lives and dces not remarry: Widow with 3 or more children under 18 75~ Widow with 2 children under 18 70~ Widow with 1 child under 18 62-1~, 1957 Survivor Benefit Employees with S or more years of service who have reached the minimum age for service retirement have further death protection tmder this item. Here the surviving widow can elect to receive either the basic death benefit or a monthly income equal to one-half the unmodified retirement allowance the employee was eligible for on the date of his death. The monthly income lasts until the widow's death or remarriage with a guarantee that the System will pay as much as under the basic death benefit. ~' 1959 Survivor Benefit A monthly allowance shall be paid to certain sur- vivors of a member who dies before retirement. FXHTBIT B SUMMARY OF MAJOR PROVISIONS Local Safety Members - 2x at 50 Retirement Program MEMBERSHIP Membership is compulsorq for all employees, other than elective officials, who are emploqed one-half time or more. SERVICE RETIREMENT The earliest retirement age is 50; the normal retirement age is 50; and the compulsory retirement age is 60. A local safety member maq retire any time after age 50 provided he has at least 5 years of service. The monthly income is determined by age at retirement, years of credited service, and "final compensation". The latter term means the average monthly salary (excluding overtime) eamed during the final 36 consecutive months unless member specifically sequests another 36 consecutive month period. The nnmodified life allowance will be "2z of final compensation" for each year of safety service upon retirement at age 50 with increasing percentages to a maximum of 2.7~G at retirement at age 55. Service retirement benefit is subject to a limitation of 75X of final compensation. A minimum service retizement allowance of $100 per month is guaranteed upon compulsory retirement with credit for prior service. DISABILITY RETIREMENT An employee becaning disabled to the extent that he is incapable of performing his duties shall be retired for disability. His disability will be either employment connected (industrial disability) or otherwise (nonindustrial disability). An employee who becomes disabled while a member of this System for reasons arising out of his employment, will be eligible for a life income of fifty (50Y) per- cent of his final compensation. If his disability is such that he is also entitled to a disability income from Social Security, the State Sqstem benefit will be reduced by the amount of his Social Security benefit.