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HomeMy WebLinkAbout74-017RESOLUTION NO. 74-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIRE- MENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SANTA ANA 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 proposed in said contract; and WHEREAS, the following is a summary of the major provisions of the proposed changes: Provides upon death of a miscellaneous or local safety member who retired for service or dis- ability for the continuation of one-half the retirement allowance to certain survivors. Safety formula changed to 2% at 50 (from 1/2 at 55). NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Aha 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 pro- posed changes being attached hereto, marked Exhibits "A" and "B", and by this reference made a part hereof. ATTEST: ~N C I~L RESOLUTION NO. 74-17 PAGE TWO STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF SANTA ANA ) SS.: I, FLORENCE I. MALONE, do hereby certify that I am the Clerk of the Council of the City of Santa Aha; that the foregoing Resolution was introduced to said Council at its regular meeting held on the 4 day of February 1974, and was at said meeting passed and adopted by the following vote, to wit: AYES, Councilmen: NOES, Councilmen: Evans, Yamamoto, Markel, Garthe, Patterson, Ward, Griset None ABSENT, Councilmen: None 8/88 DUE TO POOR CONDITION ORIGINAL DESTROYED EXHIBIT A AS~DMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PU~T.IC EMPLOYEES' RETIRE~ENT SYSTEM AND ~ OITY OOUNOIL O~ THE OITY OP SANT~ANA The Board of A&mtnistration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF SANTA ANA, hereinafter referred to as Public Agency having entered into a contract under date of November 25, 1946, effective July l, 1947, and as amended effective October l, 1951, ~ebruary l, 1954, September l, 1956, July l~ 1959, November l~ 1960, September l~ 1963 April l~ 1964, February l, 1965, January 16, 1969, and November l, 1970, and as provided b2' Chapters 170 and 316, Statutes of 1971, which provide for participa- tion of Public Agency, hereby agree as follows: Ae Paragraphs 1 through 11 are hereby stricken from said contract as executed effective July l, 1947, and are hereby replaced by the following paragraphs numbered i through 8 inclusive: All words and terms used herein which are defined in the Public Employ- eesI Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 60 for miscellaneous members and age 50 for local safety members. Public Agency shall participate in the Public Employees' Retirement System from and after July l, 1947, making its employees as herein- after provided, members of said System subject to all provisions of the Public Employees' R~tirement Law except such as apply only on elec- tion of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except such as by express pro- vision thereof apply only on the election of contracting agencies. 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 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). The following employees shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS The fraction of final compensat&on to be provided for each yenr of credited prior and curr~nt service as a miscellaneous member shall be ~at provided in Section 21251.13 of said ~etirement Law. Ret. ~orm 702-1 The following additional provisions of the Public Employees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: 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. Section 21380-7 (providing for allowances for survivors of mem- bers covered under the program upon death before retirement). Section 21263 (providing upon death of a miscellaneous or local safety member who retired for service or disability for the con- tinuation of one-half the retirement allowance to certain survivorS). 6. Public Agency shall contribute to said Retirement System as follows: With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 1.53 percent until June 30~ 1980 on account of the liability for prior service benefits. (2) 9.81 percent on account of the liability for current service benefits. ($) 0.69 percent on account of t~e liability for the 1959 Survivors program. With respect to local safety members, the public agency shall con- ~ribute the following percentages of monthly salaries earned as local safety members of said System: (1) 2.158 percent until JUne 30, 1979 on account of the liability for prior service benefits. (2) 21.382 percent on account of the liability for current service benefits. (~) 0.089 percent on account of the liability for the 1959 Surviv~rs program. es A reasonable amount per ann~a, as fixed by Board to cover the costs of a~mtuistering sa~d System as it affects the employees of Public Agency, not including the costs of special valuations or the period- ical investigation and valuation required by law. 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 Agency, and costs of the period- ical investigation and valuation required by law. Ret. Form 702-2 ..~ ~..: Contributions required by 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 the experience under the Retirement System, as determined by the periodical investigation and valuation required by said Retirement Law. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System v~thin 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 employee and Board. Payments by Pmblic Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. This amendment shall be attached to said contract and shall be effective on the day of Witness our hands this day of. BOARD O~ AD~I;ISTRATION PU]~LIC FJ~PLOYEES! RETIREMENT SYSTEM William E. Payne, Executive Officer 'CITY OOUNCI~ O~ THE CITY O~ SANTA ANA Presiding. ~ .Of~iee~ lttest?~..~,.' ~'. Clerk Ret. Form 702-3 EXHIBIT B SU~/ARY OF MAJOR PROVISIONS Local Safety Members - 2% at 50 Retirement Program MEMBERSHIP Membership is compulsory for all employees, other than elective officials, who are employed 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 may retire any time after age 50 provided he has at least 5 years of service. The monthly income is determined by age atretirement, years of credited s~rvice, and "final compensation". ~%e latter term means the average monthly salary (excluding overtime) earned during the final 36 consecutive months unless member specifically requests another 36 consecutive month period. The unmodified life allowance will be "2% of final compensation" for each year of safety service upon retirement at age 50 with increasing percentages to a maximum of 2.7% at retirement at age 55. Service retirement benefit is subject to a limitation of 75% of final compensation. A minimum service retirement allowance of $100 per month is guaranteed upon compulsory retirement with credit for prior service. .DISABILITY RETIREMENT An employee becoming 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 (50%) par- cent of his final compensation. If his disability is such that he is also entitled to a disability income from Social Security, the State System benefit will be reduced by the amount of his Social Security benefit. An employee becoming disabled for reasons not connected with hie employment shall be eligible for disability retirement provided he has at least 5 years of service; auch disability allowance is equal to 1.8% of final compensation for each year of service, with a guarantee of 1/3 of' such final compensation for most employees who have rendered at least l0 years of .~ervice. The "ordinary" disability retirement allowance shall under no circumstances exceed the service retirement allowance which would become payable at age 60 if employment could be continued to that age, DEATH 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 completfn~ six years of membership, the benefit is one month's salary for each year of membership plus refund of contributions. The salary referred to ia that earned during the year preceding death. Prior service does not count toward this benefit. Industrial 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 ~%~ me~er'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 total benefit (including Social Security) would be increased to the follow- ~ng percentages of "final compensation" so long as the widow lives and does 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~ 1957 Survivor Benefit Employees with 5 or more years of service who have reached the minimum age for service retirement have further death protection ~der this item. Here the survivin~ widu~ can elec~ to receive either the basic death benefit or a monthly income equal.to one-half the unmodified retirement allowance the employee was elisible 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. Death After Retirement The death benefit is $500. This .i~ 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 disability, for the continuation 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 retirn~ent benefit he has earned, or he may withdraw his contributions (plus interest), t~us tez~inating 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 tile 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 contributions to the System which are deducted from his salary. The rate of contribution (percentage of pay) is 9Z 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. All contribution rates are subject to revision by the Board of Administration.