HomeMy WebLinkAboutAgmt_1950_December 7_SERS
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."', DEe 13 \950
STATE OF CALIFORNIA :ta~
BOARD OF ADMINISTRATION
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EARL W. CHAPMAN
axaCUTlvK o....[CKIII
JOHN R~ CORNWELL. PRU[D1I:NT
H. H. BJl:NIEPICT
RALPH H. COWING
JAM!!S D!!AN
DONALD GALLACilHEJI
THIl:ODOR!! H. J':NNER
WALTER C. KENNEDY
HAROLD H. ROBINSON
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RALPH R. NELSON
ACTUARY
ECWARD K. COOMas
A..I.TART IEXIECUTIV. 0....11;.1'
LAUREN C. HAIGHT
ASS'STANT ILcTUILRY
'tate ~mpln~ees' ~etirement '~stem
1320 K STREET
SACRAMENTO 14
PLEASE DIRECT YOUR REPLY TO SECTION
R...1Il: TO MEM..R ACCOUNT NUMSER
corlTRACT OF
CITY OF SANTA ANA
(Name of Public Agency)
with the
Firm of CCl',TES, HERFURTH and ENGLAND, CONSULTING ACTUARIES, for
making an investication an~ valuation ae stated herein.
1.
This AGREEMENT made this 7th day of D,ce~~;, 19 <;0 , by and between the
CITY COUNCIL o' OF SDlTA ANA.
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hereinafter referred to as Agency, and COATES, t1J\HFURTH and ENGLAnD, a co-partneI'-
ship composed of Carl E. Herfurth and Arthur W. England, Consulting Actuaries,
hereinafter referred to as Actuaries.
WITNESSETH:
2. Agency heretvi.th engages and retains the services of. Actuaries for the following
work:
a. To make as of June 30, 1950, with reference to persons \7ho have been
and are members of the state Employees' Retirement System with credit
for servi.ce rendered as employees, the investigation and valuation
provided for i.!'l Section 20127 of the State Employees' Retirement Law,
the results of said investigation and valuation to be the basis of
determination by the Board of Administration of any necessary adiust-
ment in the contributi.ons required of agency under the contract be-
tllfeen its legislati.ve body and said Board.
b. To make as of June 30, 1950, such valuation of assets and liabilities
as may be necessary to determine the contribution which would be re-
quired of ~gency if it subjected itself and its employees to the oonend-
menta to the Retirement Law as outlined in paragraphs A, B, AND C. of
Form 559 which is attached to this contract and made a part hereof. The
Actuaries f reports with respect to said amenctnents shall be as follows:
One report re:
One report re:
Cne report re:
Paragraph A AND B of
Paragraph C "
Paragraph ------ "
F',Jrm. 555'.
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c. Actuaries are to prepare additional reports, or information supple-
mentary to the reports mentioned above, with respect to the contribu-
tions which would be required of Agency, on the basis of the fore-
going valuations and information which will be furni.shed by the
Retirement System, if it elects to be subject to alnendments as
outlined in sub-paragraphs ()) of paragraph D of Form 559.
3. It. is assumed that the employees of the Ilgency are of tWQ; member classifications
and that there will be included in the valuation 394 persons who are members or
w~o are receiving retirement allowances because of service rendered to Agency.
4. Should Actuaries encounter in the valuation any unusual situation or should
Actuaries be requested by Agency to make further valuations of different com-
binations of benefits and contributions, which might require an additional ex-
penditure of time, said situation and request shall be brought to the attention
of the Board of Administration, state Employees' Retirement System for further
consideration. It is understood that the time expended in connection with said
unusual situation and further valuation, is not included within the fee stated
herein.
5. Agency and Ilctuaries understand that said Board of l\.dministration will furnish
to Actuaries, the data relative to persons who are members of said Retir~nent
System tvith credit for service rendered as employees of Agency, necessary for
performance of the work described in paragraph 2. Both parties also understand
that said Board of Administration will make available to Actuaries, variotls
tables and schedules of rates based on the experience under said Retirement
System 5.':long members thereof, as determined in current and previous investigations
and valuations. Both parties understand, further, that in accordance with said
Retirement Law, the work to be performed by Actuaries shall be performed under
the direction of the Actuary of the Retirement System, and that all data in
connection with said work, including work sheets, final results, and reports
from Actuaries, shall be the property of the Board of Administration and shall be
delivered to said Board at the conclusion of said work.
6. For the full performance and completion of said services, Actuaries shall receive
from "gency, the following amounts:
For work provided in sub-paragraph a. of paragraph 2 hereof $ 281.40
II " " " " " b. " " II " $ 89,l.Oi
" " " " " " c. " " II " $ W.OO
Total $ 4oo.5l!!
subject to adjustment on account of variation in the number of employees for
whom data are submitted as provided in paragraph 5 hereof, from the nl>>nber of
such employees stated in paragraph 3, and subject to any adjustment made on
account of any unusual situation, or on account of further valuations of differ-
ent combinations of benefits and contributions requested by Agency, as hereinbe-
fore provided. Agency agrees that the sum fixed in this para~raph as compensa-
tion for the services to be pe:c';'ormed by Actuaries, shall cover only the calcula-
tions and conferences between tte officers and employees of the Board of
Administration and Actuaries, necessary in the performance of the work, excluding
conferences between Agency and Actuaries. It is understood arld agree that Agency
shall deal only through said Board of Administration.
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7. Actuaries hereby agree to render the services herein provided for and to complete
the same in a satisfactory and expeditious manner. Actuaries shall furnish to
the Board of Ad~inistration, in addition to data provided herein to be furnished,
a written sunmary in duplicate OD the Retirement System's form, of the results of
the calculations made under this agreement and the compensation provided for here-
in shall be payable by Agency when such sU11llllary is delivered to the Board of
Administration.
8. This contract is made and entered into in accordance with the provisions of
Chapter 4 of the State Employees I Retirement Law, and is subject to the provisions
of said Law.
WITNESS OUR IOOlDS the day and yea.r first above written.
CITY OF SANTA ANA
(Name of AGency)
Approved by the Board of Administra-
tion, STATE EMPLOYEES I RETIREMEliT
SYSTEM, at the meeting held
By c:Ji'OOc....... d'... ~
Hayor
(Title)
Date
MAR 1 619~'
{~J~~~
Executive Officer
COATES, IlERTh"'RTIl AND ENGLAND, a co-
partnership composed of:
By
Carl E. Herfurth
Arthur W. England
By .~z1J
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~mi\RY 0]<' 1\':lEllJl!ENTS TO
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THE CALIFORNIA ~ EIlPLOYEES' RETIRE1\IENT Li\Vl
(To be attached to Contract with \ctuaries)
A. The amendments to the Retirement Law made in 1945 and 1947 reduced the ages at
which members may be retired and increased the benefits members will receive,
the principal amenwnents briefly being as follows:
(1) llormal service retirement age for Miscellaneous Members reduced
from 65 to 60;
(2) The factor in the service retirement benefit formula for Miscel-
laneous Members increased from 1/70 to 1/60;
(3) The minimum guaranteed monthly retirement allowance increased from
$40 to $60 to apply at age 65 or over with credit for 20 years of
service or at age 70 with prior service credit;
(4) A death benefit of $300 provided for retired persons;
(5) A guaranteed percentage of final compensation for each year of
service as a member, provided for Miscellaneous Members;
(6) The removal of the maximum of $5,000 per annum of compensation
to be included in computations under the Retirement Law;
(7) Normal service retirement age for Local Safety members reduced
from 60 to 55 and basis of benefits increased.
B. The amendments to the Retirement Law made in 1949, which a Public .\gency may
elect to apply to its contract, are:
(1) Section 21253 of the Retirement Law, providing for prior ser-
vice benefits of Miscellaneous Members at one-sixtieth of
final compensation upon service retirement at age 60 or its actu-
arial equivalent upon service retirffiuent ages 55 to 65 and over;
(2) Section 21252.4 of the Retirement Law, providing for a guaran-
teed percentage of final compensation for each year of service
as a Local Safety Member.
C. Agency may elect to pay the member-contributions of its employees who were or
will be absent on military service. (Actuaries will determine only the approxi-
mate cost to Agency of paying the member-contributions with respect to its em-
ployees who have returned from military absence prior to January 1, 1950.)
D. Agency may elect to increase the retirement allowances payable to retired per-
sons by applying to such persons the provisions of its contract:
(1) As that contract existed on June 30, 1950, or
(':!) As that contract would exist if amended as outlined under paragraph
IIAII above, or
(3) As that contract would exist if a-nended as outlined under paragraphs
itA" and "13" above.
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