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
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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
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' (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~
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Atte~i~ ~~,~ ~
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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
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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.