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HomeMy WebLinkAbout4607 RESOLUTION NO. 4607 A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES'RETIREMENT SYSTEM AND THE CITY OF ARCADIA WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said law; and WHEREAS, one of the steps required in the procedure to amend this contract is the adoption by the legislative body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the changes proposes in said contract; and WHEREAS, the following is a summary of the proposed change: 1. Provide full 1/50 for all miscellaneous employees. 2. 'Provides a monthly allowance to certain survivors of a member who dies before retirement for miscel- laneous members. 3. Provides service credit at retirement for unused sick leave, for miscellaneous members. 4. Provide upon death of a miscellaneous member who has retired for service or disability for the continua~ tion of post-retirement survivor allowance to certain -1- 4607 , survivors. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF ARCADIA does hereby give notice of intention to approve an amendment to contract between said CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of'said amendment being attached hereto, marked Exhibit "A" and by this reference made a part hereof. The City Clerk shall certify t~ the adoption of the resolution. I HEREBY CERTIFY that the foregoing resolution was adopted at a regular meeting of the City Council,of the City of Arcadia held on the 18th day of January, '1977, by the affirmative vote of at lea,st three Council members, to wit: AYES: Councilmen Gilb, Margett, Parry, Saelid and Lauber NOES: None ABSENT: None ~~~~ c~ty Clerk of the C~ty of Arcad~a SIGNED AND APPROVED this 18th day of January, 1977. 7~..,-~~<.~ M~~~Of-the C~ty of Arcad~a ATTEST: " . ~' ~7J/fU - ' . C~ty Cle~~ , (SEAL) -2- 4607 .' r~t ",:;; ,-:-; I':" \!i' . 'I', ' . , . :1 ',' 'j 'Ai'lENDl>1EIITTd c'6wJ.'~).2,i ~iT.:!ii:N THE , BoARD OF A1/-lINIST2\TION PUBLIC EHPLOYU::J' REl'IRSHSNT SYSTEH AND Tm; CITY COUnCIL OF THE CITY OF ARCADIA The Board of Administration. ~lblic nnployees' Retirement System, hereinafter referred to as Board. and the CITY COlfl1CIL of the CITY OF ARCADIA. hereinafter re- ferred to as Public ~gency having entered into a contract under date of September 24, 1945, eff&ctive October 1. 1945, and as amended effective July 1, 1953. January 1. 1957, January 1, '1958. .January 1, 1959, January 19. 1964. February 28. 1965, October 1, 1972, June 24, 1973 and January 4, 1976, which provide for participation of Public Agency i~ said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 8 are hereby stricken from said contract as executed effective October 1, 1972, and are hereby replaced by the following pata- graph~ numbered 1 through 9 inclusive: 1. All 'lOrds and terms used herein \1hich are defined in the Public Employees' rietiremant Law shall have the meaning .as defined therein unless otherwise lJpe(;ifically provided. "Hormal retirement age" shall mean age 60 for miscellaneous members, and age 55 for local safety members., 2. Public Agency shall participate in the Public Employees' Retirement System fr\)m and after October 1, 1945, making its emplcyees as hereinafter provided, members of said System subject to all provi- sions of the public Employees' Retirement L1.w except such as apply only on election of a contracting agency and are not provided 1'(;1' herein and to all amendments to said Law hereafter enacted except such as by express provisions thereof apply only on the election of contracting agencies. 3. Employees of. Public Agency in the following classes and groups shall become members of said Retirement System except such in each such class ,and group as are excluded by law or this agreement:. a. Local firemen (herein referred to as 'local safety members); b. Local policemen (herein referred to as local safety members); c. Employees other than local safety members (herein referred to as miscellaneous members). In addition to the employees excluded from membership by ,said Retire- ment Law, the following employees sl~ll not become members of the Retirement System: NO ADDITIONAL EXCLUSIONS Ret. Form 702-1 EXHIBIT "A" " 4. The fraction of final compensation to be.provided for miscellaneous members for each yenr of credite1 prior and current service shall be that provided in Section 21251.13 with all Her.vice of former miscoll- 'aneous Group B members prior to the termination of Social Security coverage subject to ,the reduction provided by said,section. 5. The following provisions of the Public Employees', Retirement Law which apply only upon election of a contracting agency shall apply' to the Public Agenc~and its employees: a. Section 21252.6 (providing for the fraction of final compensat- ion to be provided for each year of credited prior and current service as-a local safety member). b. Section 20952.5 (providing for age 50 as the minimum voluntary retirement'age for local safety members with benefit payments 'commencing prior to age 55 subject to actuarial discount). c. Section 21380-8 (providing for allowances for survivors of members covered under thc program upon death before retirement). d. Section 20862.8 (providine service credit at retirement for 'unused sicK ',leave) 'for miscellaneous, member-so e. Section 20024.2 (defining "final compensation" on the basis of average compensation earnable during the year immediately preceding,retirement or any other one year period elected by the member),. ' f. Section 21263 and 21263.1 (providing upon death of a.local mis- cellaneous and/or safety l!1ember \~ho retired for service or dis- ability for the continuance of one-half the retirement allowance to certain survivors). 6. Public Agency. in.accordance with Section 20740, Government Code, shall cease to, be an "employer" for ,purposes of Chapter 6 of the Public Employees' Retirement Law effective as of the effective date of this amendment to this contract. Accumulated contributions of the Public Agency as of the date of such amendment shall be fixed llnd aetermined as provided in Section 20759, Government Code, and such accumulated contributions and contributions herafter made shall be ~eld by the Board as. provided in Section 20759, Government Code. 7. Public Agency shall contribute to said Retiremnnt System as follows: a. 'With respect to miscellaneous members, the pUblic aeency shall contribute the following percentages, of monthly salaries earned 80 miscellaneous membero of said System: (1) 0.083 percent until June 30. 2000 on account of the liability for prior service benefits. Ret. Form 702-2 . - .' (2) 13.21f4 percent ,on account of the liability for cUrrent service benefits. (3), 0.209 percent' on account of the liability for the,1959 Survivors program. b. 1'lith respect to local safety members, the public agency shall contribute' the follO\'Iing percerrtac;es of monthly salaries earned aslocal.safety members of said System: ' (1) .0.259 percent 'until June 30, 1977 on account of the liability for prior' service benefits. (2) 17.921 percent on account of the .liability for current service benefits. '(3) 0.087 'percent ,on ,account of the liability for the 1959 Survivors program. c. A. reasonable a"ount per"annum, as fixed by Board to cover the , costs of administering said, System as it affects the employees, , 'of 'Public Agency, ,not inc+udi~ the. costs' of:special,valUations :, or the perioihnal 'invllstigation and valuation required 'by' law. " '. . .. d. A reasonable 8>:10unt as fixed by the Board, payable in one-- installment as the occasions arise, to cover costs of special valustions on account of employees of Public J.gency, and cost,s of the periodical investigation and valuation required by law. 8. Contributions required by Public Ager.cy and its employees shall be subject to adjustment by Board on account of amendments to the Public fuployees' Betirement law I ,and on account of the experience under the Retirement System, as determincd by the periodical invest- igation and'valuation required by said Retirement Law. 9.,. Contributions required of Public Agency and its employees shall be !laid by Public Agency to the Retirement System within ,thirty days after the end of the period to which said contributions refer. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall ,be made in connection with subsequent remittances, or adjustments on account of errors in contributions required of any employee may be made by direct cash payments between the e1l1ployee and' Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders,' .01' cash. B. This amendment s~~ll be attached to said contract and shall be effective on the day of, . Ret. Form 702-3 ~ a. u _ Witness our hands this~ day of BOARD OF ADMINISTRATION PUBLIC EHPLOYEES' RE'l'IREiID1TSYSTFl1 I I I I [ I I I I I I ! i I BY Carl J. Blechinger, f1xecutive Officer ,Approved as to form: , : -., Legal Office, PERS . CITY COUNCIl. OF THE CITY OF ARCADIA BY btJ-- j( ~f' ~ Presiding Officer Attest: ..,~~~, Clerk ' , " MJ Ret. Form :702-4 ~ I' I ! ~ ...... .' ~ ,~ t~.,:':- .';. ..,.l.".j _ . "'.' ..,' ..I ". ! I ,.' !" :'! Ii:. 1"1' I. ; , J" !" ,,' . \. ~. i , ...~. , I - , " SUMMARY OF MAJOR P110VISIOll'S 1/50 Retirement Program Local lJiscelloneou6 Membero (For service after termination of Social Security) )!EM:BEIlSHIP Membership is compulsory for all employecs, other ~~ elected officials, wh~ are euiployed one-half time or more except those excluded under the contract. SERVICE RETIRE!.lENT. The earliest retirement 2ee is 55; the norm.-'ll reUremcn t aee is 60; and the compulsory' retirement age is 67. An employee may retire Bny time between these ages, 55 and 67, provided he meets the mi~Jm requiremeuts thnt.he ei~~er have . .:...<5 years of service.2E have attained the compulsory retircment age of 67. The monthly income is determined by age at retirement, years of credited service, and "final compensation". The'basic'~benefit will be 2% of "final eOIn-' pensation'" for each year of credited service upon, retirer.:ent at age 60.. If re- .... . -. tirement is deferred beyond age 60, the percentages of "final compensation" for each year of service are increased up to age 63 but not beyond. If retirement. . ...is earlier than age 60, the percentages of "final compensation" for each year,. of .. ....... . service are decrease.d. Service credit prior to Social Sccuri ty termination is " . . .. computed on t.he modified 1/50 formula \'1i th all service on or after termination. of Social Security computed on:the full.formula. . ...., nFinal compensati.on" is average monthly salary (full time rate excluding overtime) earned during the final 12 consecutive months unless member specifically requests another 12 consecutive month period. A miniIm.un sern.ee retirement allowance of $100 per month is guaranteed upon compulsory retirement wi.th credit for prior service. DISAJ3ILITY llETlREli!ENT An employee becoming disabled to the extent that he is incapable of performing his duties shall be eligi.ble for disability retirement provided he has at least 5 yea:rs 'of sen-:l.ce. The monthly ret1rem~nt allowance is i.8') of "final compensa- tion" for e~ch year of service wi tl:1 a minimum guarantee of one-third of final compensation for most employees \'Iho have r'mdered at least 10 yea:rs of Bervice~ ... ..... Th.e. disahili. ty reUrement allo'NBnce shall lUlder no circumstances exceed the serv1.ee- m .... - ,. retirement e.lloVlance payable upon retirement for service at age 60, if employment could be cllTltinued to that age.. . . . I . CP.EDIT FO,R UNUSED SICK LEA. VB - -- .. Credit i8 prOvided at retirement for uoused.sick leave.' .'. . " DEA'l~1 BENEFITS 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 membership, the benefit is one month's salary for each year of membership plus refund of contributions. The salary referred to is that earned d'uring tile year preceding death. 'Prior service does not count toward this benefit. . 1957 Survivor Benefit Employees with 5 or more years ot service who have reached the minimum age for service retirement have further death pr~tect10n under this item. Here the survivillG spouse can elect to receive either the basic death benefit or a monthly ineome equal to one-half the ~~mod1fied retirement allewance tile employee was elieible for on the dnte of his death. Tt.e monthly income In.sts until the . spouse's death or remarriage with a guarantee that the System will pay as much as under the basic death beneUt. 1959 Survivor Benefit A monthly allowance shall be paid to certain sur- vivors of a member who dies before retirement. ~eath A~ter~etirement ,The death benefit is $500 if death occurs after retircment. This amount '1111 be in addition to any payments which trlght be made under an optional retirement benefit chosen by the membe~ at his retirement. ~~~~half' ~o~tinu~ce provides upon tile dcs'th 'of a mi~cellaneous :member who " has retiren {or service or disabili ty, for the con.tinuance of .one-htlf the ,retirement allowance to certain survivors.' . , . . ' . . ..,.- * . TEHMINATIO!f OP EMPLOYMENT Upon terminstion of employment, an employee with 5 or more years of service may either leave hiE contributions with the System and receive, upon attainillg retirement age, the retirement benefit he has earned, or he 'may withdraw his eontributions (plus interest)" thus, terminating his membership in the SJ'stem end 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. auton:a.tically have his contri~~tions, plus interest, refunded upon termination of employment and (2) a . ,member who 1s transferring to employment with another agency which is covered lruder the System shall not, have thc rieht of wi thdral'1ing his accUJmllated corftributions. EMPLOYEE COUTRI3JTIOJrS Each Diiscellaneotls member, wbether a new I!:ember or a member with yeers of member- ship, will start contributing at the ~~iform rate of 7% of salary earned, exclusive of overtime, on the date tp~s'formula becomes effective. . I The emplojer'nlso contributes toward the cost of the benefits. The amount con- tributed by the employer fer current service retirement benefits will, on the average, eT-ceed the cost to the. employee. In addition, the employer bears t~e entire cost of prior ser.-:l,ee benefits.' " , , ( emploYElr ' . Al:j/ contribution rates are subject to revision by the Board of Administration,.