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HomeMy WebLinkAboutCC Res 2180 1973-02-26 ~ I .1. 'I RESOLUTION NUMBER J J (1) A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SEAL BEACH AND RESCINDING ALL OTHER RESOLUTIONS IN CONFLICT THEREWITH. 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 one of the steps 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 proposed in said contract; and WHEREAS, the following is a statement of the proposed change for retired members: WHEREAS, WHEREAS, Retirement allowances to which the annual cost-of-living provisions apply, payable for time commencing on the first day of the calendar month coinciding with or next following the effective date of this amendment to or on account of persons retired or members deceased on or prior to December 31, 1970, are hereby increased by 5%; and WHEREAS, the following is a summary of the proposed changes for Miscel- laneous members: 1. A monthly allowance shall be paid to certain survivors of members covered under the 1959 Survivor program upon death before retirement. 2. Provides upon the death of a miscellaneous member who has retired for service or disability for the continuation of one-half the retirement allowance to certain survivors; and WHEREAS, attached is a summary of the major changes in the proposed plan for Safety members; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seal Beach gives, and it 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 and a summary of the major provisions of the proposed change for safety members being attached hereto, marked Exhibits "A" and "B" and by this reference made a part hereof. PASSED, APPROVED, AND ADOPTED by the City Counci\tPf the CityJof Seal Beach, California at a meeting thereof held on the..;::'~ day Of~"'fjI , 1973 by the following vote: AYES, ~"'"'!"'!~E ~d;.._/!ri~~-? 07e~qf!.~ .J NOES: ~, Councllmen '.. .. -"".............., ~ ABSENT: . Councl'J.inen . ,.., c. :---. :-. -:'\~.. -:.- ~:. :~ -;': :- AT~~:?~;- , '", ~ g; -, '~'L I ,. r"""l......... '"7'" - (--tr~:(~~:: /"!, ~.: _.~...!-V Ci ty ICrerk-l., .:--:..,.,', . v .' :...... .... ,\ 2A-L ~_ MajOr -. - I I Resolution Number , . -' " ~' EXHIBIT A , 0.. ~~\~,..:' m.'NDMENT TO COLITHACT DETi'1EEN THE e\.'~V BOARD QIo' AmmlISTHATION ~~~ PUBLIC EJ,IPLOYEES' RETIHEl-iEI\'T SYSTEM ~ ' AND TIm: ~'-'Il ~ ,~ CITY COUNCIL ~ ~,..... OF TIm: ~:.~: ~ crry OF SEAL BEACH ~ Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF SEAL BEACH, hereinafter referred to as Public Agency having entered into a contract under date of April 28, 1958, effective June 1, 1958, and as amended Aueust 1, 1968 and July 1, 1972, and, as provided by Chapter 170, Statutes of 1971 and Chapter 316, Statutes of 1971, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 9 are hereby stricken from said contract as executed effective June 1, 1958, and are hereby replaced by the follo,dng paragraphs numbered 1 through 10 inclusive: 1. All words and terms used herein which are defined in the Public Employ- ees' Retirement Law shall have the meaninG as defined therein unless other~1ise specifically provided. "Normal 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 from and after June 1, 195fl, making its employees as herein- after provided, members of said system subject to all provioions of the Public Employees' Retirement Law exCl:>pt such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except such as by exp.ress provision thereof apply only on the election of contracting agencies. 3. J~p1oyees of Public Agency in the follo~ling classes shall become mem- bOl'S of said Retirement System except such in each such claos 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 3afety members); c. Employees ot,her than local firemen and local policemen (herein referred to as miscellaneous members). The 1'ollo~dng employees shall be excluded from membership in said Retirement System: F.xCLUDE PERSONS COMPENSATED ON AN HOURLY BASIS IIIRED AUGUST 1, 1968, OR AFTER. Ret. Form 702-1 - ~ . Resolution Numb~r ' ~e fraction of final compensation to be provided for e~ch ie~r of ~~:redited prior and current service as a miscellaneous member upon , retirement at normal retirement age shall be 1/50 and shall be ap- . ~ pJ.ied as provided in Section 21251.13 of said Retirement Law with ~~ service prior to the termination of Social Security coverage subject .....,~, to the modification set forth in said section. :i.:'~ ~ 4.k;j' 5. The fraction of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21252.6 of said Retirement Law. . . 6. Contributions for miscellaneous and local safety members shall be subject to Sections 20603 and 20605 respectively of said Retirement Law. I 7. The following additional provisions of the Public Employees I Retire- ment La,~ l'Ihich apply only upon election of a contracting agency shall appJ.y to the Public Agency and its employees: a. Section 20952.5 (providing for age 50 as the minimum voluntary retirement age for local safety m~~ers with benefit payments commencing prior to age 55 subject to actuarial discount). b. Section 21380-7 (providing for allm~ances for survivors of Hisce1- laneous and Safety members covered under the program upon death before retirement). c. Section 2126~, and Section 21264.1 (providing upon death of a local safety member and/or mctsce11aneous member who retired for service or disability for the continuation of one-half the retirement allo"'ance to certain survivors). d. Section 21222.1 (providing for increases payable for time com- mencing on the first day of the calendar month coinciding with or next following the effective date of this amendment to or on account of persons retired or members deceased on or prior to December 31, 1970). 8. Public Agency shall contribute to said Retirement System as follows: I a. '...ith respect to miscellaneous members, the public agency sb..,ll contributl} the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 0.84 percent until Jl.Ule 30, 2000 on account of the liability for prior service benefits. (2) 9.43 percent on account of the liability. for current service benefits. (.3) 1.00 percent on account of the liability for the 1959 Survivors program. (4) 0.26 percent on accoQ~t of the liability for the 5% L~crease in accordance with Section 21222.1 of the Government Code until Juno 30, 197a. . Ret. Form 702-2 - I I . ~ . Resolution Number " . b. With respect to local GaIety members, the public ~gencY'shall contribute the follcwing percentages of monthly salaries earned as local safety members of said System: (1) 14.967 percent on account of the liability for current service benefits. (2), 0.5 percent on accowlt of the liability for the 1959 Survivors program. (3) 0.22 percent on account of the liability for the 5% increase in accordance with Section 21222.1 of the Government Code until June 30, 1978. 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 of special valuations or the periodical investigation and valuation required by law. d. A reasonable amount as fixed by the Board, payable in one install- ment as the occasions arise, to cover costs of special valuations on account of employees of Public Aeency, and costs of the period- ical investigation and valuation required by lal". 9. Contributions required of Public Agency and its employees shall be sub- ject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of eA~erience under the Retirement System, ac determined by the periodical investigation and valuation required by said Retirement Law. 10. Contributions required of Public Agency and its employees shall be paid 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 amowlt of contribution is paid for any period, proper adjustment shall be J!I.a.de in connection with subsequent remittances or adjustment on account of errors in contributions required of any employee may be made by direct cash payments betl'/een the employee and Board. Payments by Public Agency to Board may be made in the form of t/arrants, bank checks, bank drafts, certified checks, money orders, or cash. B. This amendment shall be effective on the day of \'li.tness our hands this BOARD OF ADIUNISTRA'rION PUBLIC EJ.!PLOYEES I F/ETIRENENT SYSTEl4 day of _ CTIY COm~CIL OF THE ~ ~YOF=:< ~ ,."~~~ Attest:~~~ BY vlilliarn E. Payne, Execlltive Officer Clerk Ret. Form 702-3' . -, I I " Resolution Number EXHIBl'r B SUMMARY OF MAJOR PROVISIONS Local Safety Members - 2% at 55 Retirement Program MEMBERSHIP Membership is compulsory for all employees, other than elective officials, ,~ho are employed one-half time or more except those excluded under the contract. SERVICE RETIREMENT The earliest retirement age is 50 (discounted basis); the normal retirement age is, 55.; 'and the compulsory retirement age is 65. A local safety member may 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) earned during the final 36 consecutive months unless member specifically requests another 36 ~onsecutive month period. The basic benefit formula is designed to provide at age S5 or later an allcMance equal to 2% of final compensation multiplied by the number of years of local safety member service subject to this formula. A minimum service retirement allowance of $100 per month is guaranteed upon com- pulsory retirement with credit for prior service. DISABILITY RETIRE~IENT An employee becoming disabled to the extent that he is incapable of performing his duties shall be retired for disability. His disabili t)' I~ill be either employment connected (industrial disability) or othel'l~ise (nonindustrial disability). 1m employee who becomes 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). 1m employee becoming disabled for reasons not connected with his employment shall be eligible for disability retirement provided he has at least 5 years of service; such disability allolfance is equal to 1.5% of final, compensation for each year of service, - " I - I ,.. " .r. ~ . Resolution Number 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 allOlfance shall under no circumstances exceed the service retirement allowance which would become pay- able at age 55 if employment could be continued to that age. DEATH BENEFITS Death Before Retirement Basic Death Benefit This benefit is a ref1ll1d 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 member- ship plus refund of contributions. The salary referred to is that earned during the year preceding death. Prior service does not count toward this benefit. " Industrial Death If death is service-connected in the judgment of the Industrial,Accident Commission, a mqnthly 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 widolf reaclles age 62). The total, ~ncluding SociP.l Security, would be 50% of "final compensation". If death was caused by external violence or physical force, the total benefit (including Social Security) would be increased to the follOldng percentages of "final compensation II so long as the widow lives and does not remarry: . ".. \ -, ----- Widow with 3 or more children under 18 WidOlf with 2 children under 18 Widow with 1 child under 18 75% 70% 62~% ~ 1957 Survivor Benefit Employees with 5 or more years of service who have reached the minimwn age for service retirement have further death protection under 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 allolfance 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 eertain sur- vivors or a member Who dies before retirement. Death Arter Retirement I 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. " - I ,I . .. Resolution Number One-half Continuance Provides upon the death of a local safety member who has retired for service, or disability, for the continua- tion of one-half the retirement ,allowance to certain survivors. TERMINATION OF EMPLOYMENT Upon termination 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 !:!2i have the privilege of leaving his contributions with the System, but shall automatically have his contributions, plus interest, refunded upon termination of employment, and (2) a member who is transferring to employment with another agency which is covered under the System shall not have the right of withdrawing his accumulated contributions. EMPLOYEE CONTRIBUTIONS Each member makes monthly contributionll to the System which are deducted from his salary. The rate of contribution (percentage of pay) is 7% of salary earned, exclusive of overtime, on the date this formula becomes effective. The employer also contributes toward the cost of the benefits. The amount con- tributed by the employer for current service retirement benefits will, 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. '~ll'contr~but1on'rates are subject to revision by the Board of Administration. .