CONTRACT 717 Other// /
B.. •AD OF ADRINIVRATION -
EARL W. CHAPMAN
---
EXECUTIVE OFFICER
JOHN R.'CORNWELL. PRESIDENT
H. H. BENEDICT
RALPH R. NELSON
RALPH H. COWING
'�� I, '(
C
„�y ACTUARY
JAM ES DEAN---
DONALD GALLAGHER
EDWARD K. COOMBS
THEODORE H. JENNER
'j I '
ASSISTANT EXECUTIVE OFFICER
WALTER C. KENNEDY
HAROLD H. ROBINSON
�':
LAUREN C. HAIGHT
STATE OF CALIFORNIA
�d, ASSISTANT ACTUARY
BOARD OF ADMINISTRATION
°
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1320 K STREET
SACRAMENT0 14
PLEASE DIRECT YOUR REPLY TO SECTION
REFER TO MEMBER ACCOUNT NUMBER-.......�.....�.............
CONTR/:CT OF
blame of Public Agency
L hh the
Firm of COATES., HERFURTH and ENGIAND, CONSULTING( ACTUMIFS, for
making an investigation and valuation as stated herein.
1. This 1WRE1 DTT :jade this 1� w�`. day of ,M , .., 19 � 1 , by and between'the
CITY ' y� off i MMn
�in,7E_er referred to s Agency, and COATES, TTEERFURT9 aEi CU,," , a co--partner--
ship composed of Carl E. He-rfurth and Arthur W. England, Consulting Actuaries,
hereinafter referred to as Actuaries.
'WITNESSETH :
2. Agency herewith engages and retains the services of Actuaries for the following
work:
a.. To make as of June 30, 1950, with reference. to persons v*ho have been
and are members of the State Employees Retiremient System with credit
for service rendered as employees, the investigation and valuation
provided for in Section 20127 of the State Employees) Retirement Lair,
the results of said investigation and valuation to be the basis of
determination by the Poard of Administration of any necessary adjust-
ment in the contribut'_ons required of agency under the contract be-
t,rreen its legislative body and said Board.
b. To male 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 kgenc- if it sub4:ected itself and its employees to th.e a;nend-
ments to the Retirement Law as outlined in paragraphs C of
Form 559 which is attached to this contract and made a part hereof. The
Actuaries reports with respect to said amendTaents shall be as follows:
One report re: Paragraph C of Form 5�5.
One report, re: Paragraph -` It " it
One report re: Paragraph I1 a1
It
F 424 - 1 10-50 2000
c. Actuaries are to prepare additional reports, or information supple-
mentary to the reports mentioned above, mrith respect to the contribu-
tions which would be required of Agency, on the basis of the fore-
going valuations and information which will be furnished by the
Retirement System, if it elects to be subject to amendments as
outlined in sub -paragraphs ------- of paragraph D of Form 559•
3. It is assumed that the employees of the Agency are of two member classifications
and that there will be included in the valuation 89 persons who are members or
T ho 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 co'11-
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 Dnployees' 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 Actuaries understand that said Board of Administration will furnish
to Actuaries, the data relative to persons who are members of said Retirement
System with 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, various
tables and schedules of rates based on the experience under said Retirement
System among members thereof, as determined in current and previous investigations
and valuations. Both parties understand, further, that in accordance with said
Retirement Iavr, 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 Agency, the following amounts:
For work provided in sub -paragraph a. of paragraph 2 hereof
It it n n it it b, n it It It
T[ J
C.
Total
$ 98.40
----
9840
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 number 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 paragraph as compensa-
tion for the services to be performed by Actuaries, shall cover only the calcula-
tions and conferences between the officers and employees o" the Board of
Administration and Actuaries, necessary in tie performance of the work, excluding
conferences between Agency and Actuaries. It is understood and agree that Agency
shall deal only through said Board of Administration.
F 424 - 2 10-50 2000
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 Administration, in addition to data provided herein to be furnished,
a written summary in duplicate on 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 summary 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' Retirement Law, and is subject to the provisions
of said Law.
WIi"NESS OUR HANDS the day and year first above written.
Approved by the Board of Administra-
tion, STATE EMPLOYEES' HETIRMAENT
SYSTIMT, at the meeting held
Date MAR 1 61951
BY
Executive Officer
,,- CITY OF EL SEGUNDO
lame of gency
r
By.
(Title)
COATES, _HERF'I,RTH AND -ENTLAND, a co-
partnership. composed of:
Carl E. Herfurth
Arthur U. England
F 424 - 3 10-50 2000
SIZOAARY OF AI:IENDF.2ENTS TO
THE CALIFORNIA STATE EMPLOYEES' RETIREIVIENT UW
�(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 amendments briefly being as follows:
(1)
Normal 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
$Ito 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 Iiscellaneous IVlembers,-
(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, ti^1l ich a Public -agency 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 retirement ages 55 to 65 and over;
(2)
Section 212.52.4 of the Retirement Law, providing for a guaran-
teed percentage of final compensation for each year of service
as a Local Safety TJiember.
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
(2)
As that contract would exist if amended as outlined under paragraph
"A" above, or
(3)
As that contract would exist if amended as outlined under paragraphs
"A" and "B" above.
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