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CONTRACT 677 OtherWSTRATION EARL W. CHAPMAN 1 �AG.R.y PRESIDENT - EXECUTIVE OFFICER ENEDICT Y+• "w COWING RALPH R. NELSON DEAN " ACTUARY J" ,6H.JE HER , EDWARD K. COOMBS C KENNE Y ;C.. KENNEDY t ASSISTANT EXECUTIVE OFFICER #L ROBINSON LAUREN C. HAIGHT STATE OF CALIFORNIA ASSISTANT ACTUARY 1320 K STREET SACRAMENT014 May 16, 1950 PLEASE DIRECT YOUR REPLY TO SECTION, REFER TO MEMBER ACCOUNT N..UMBEP--. Mr. victor McCarthy, City Clerk City of E1 Segundo City Hall El Segundo, California Gentlemen: Enclosed for your file is a copy of the contract executed between 0f R_Ae&undo and Coates, Mute of Public Agency Herfurth, and England, Consulting Actuaries, and approved by the Retirement Board, for the purpose of determining the approxi- mate contribution which would be required of the Agency because of the proposed amendment in its contract with the State Employees' Retirement System. Yours truly, LAUREN C . HAIGHT eh ASSISTANT ACTUARY Encl. F 1180 3-50 BOARD OF ADMINISTRATION i'HOS. E. STANTON, PRESIDENT H. H. BENEDICT JOHN R. CORNWELL DONALD GALLAGHER EMERY OLSON JAMES DEAN WALTER C. KENNEDY HAROLD H. ROBINSON STATE OF CALIFORNIA ,ita#e iraylgees' �rtiirrment 1320 K STREET SACRAMENT0 14 CONTRACT OF CITY OF EL "F1=7 O (Name of Public Agency) with the EARL W. CHAPMAN EXECUTIVE OFFICER RALPH R. NELSON ACTUARY EDWARD K. COOMBS ASSISTANT EXECUTIVE OFFICER LAUREN C. HAIGHT ASSISTANT ACTUARY PLEASE DIRECT YOUR REPLY TO SECTION - RBFBR TO MEMBER ACCOUNT NUMBER't 7i-1,11i, '­0 t'!71 `�� Gd firm of COATES, HERFURTH and ENGLAND, C014SULTING ACTUARIES, for making an investigation and valuation as stated herein. 1. This AGREEMENT made this 21st day of Maxch 0 1950 , by and between the CITY COUNCIL of 0I I" 07 ' M '(' ,, 0 , hereinafter referred to as Agency, and COATES, HE" 1 TH and SN L1���D, a co -pa tner- ship composed of Carl E. Herfurth and Arthur IV. England, Consulting Actuaries, hereinafter referred to as actuaries. 71ITNESSETH: 2. Agency herewith engages and retains the services of actuaries for the following work: a To make as of , such valuation of tenef and coat Lions as may be necessary to determine the contribut�Pes would be regid of Agency if it subjected itself and its emp to the 1945 retiremen en ments to the Retirement Law, red " g the ages at which members may be iced, and increasing the fits members will receive, the principal amen is briefly, begin s follows: (1) reduce the minimum normal se d""_ retirement age for bliscel- laneous Members from 65 to , (2) inc a the factor in the service retirement be fi-f formula for IvIisce sous Members from 1/70 to 1/60; ( ncreae the minimum guarantee' onthly retire- ment allows : from $40 to $p60, and apply it at age 6 h 20 years, service, as well as at age 70 with prior service a fast; and (4) provide a $�300 death benefit for retired perso F 424-1 11-49 Z00 To make as of such valuation of benefits and contribute as may be ssary to determine the contributions which would be required ( ) .The rovisio S 51.1 of the State Employees -"Retirement Law, 1 p Section 212 providing for a guaran ercentage of final com ion for each year of service as a member, shoulda lied to pe who are Miscellaneous Members because of employment by Agency; (2 rovisions of Section 20025 of the State Employees' Retirement Law rovidin the portion of the compensation to be included in comput s under said law, s d be applied to persons who are members becaus employment by Agency; and (3) x� a the minimum normal service ret ant age of County Peace Officers, as defined . ection 20021.5 of th ate Employees' Retirement Law, from age 60 to S5 and chan . the basis heir benefits under said law to those provided fox local safety me be. c. To make as of January i, 1950 such valuation of benefits as may be neces- sary to determine the contributions which would be required of Agency if: (1) The provisions of Section 21253 of the State Employees' Retirement Law, providing for prior service benefits of Local Miscellaneous members at one - sixtieth of the highest average compensation earnable during any five consecu- tive years of Membership upon retirement for service at age 60, or at the actuar- ial equivalent thereof upon retirement for service at age 55 to 65 and over, should be applied to persons who are Miscellaneous Members because of employment by Agency; (2) The provisions of Section 21252.4 of said law, providing for a guaranteed percentage of the highest'average compensation earnable during any five consecutive years of membership for each year of current service as a local Safety member because of employment by Agency. It is assumed that the number and classification of members to be indicated in the work, are as follows: Number of Classification Members I. Local Firemen, as defined in Section 20021 of the State Employees' Retirement Law 5 2. Local Policemen, as defined in Section 20020 of the State Employees? Retirement Law 19 3. County Peace Officers, as defined in Section 20021.5 of the State Employees' Retirement Law -.- 4. Employees other than Local Firemen, Local Police- men and County Peace Officers. 57 3. (a) Actuaries are to prepare one report showing the approximate contribution which would be required of the Agency if its contract with the State Employees' Retirement System is amended as outlined above in paragraph 2 c. "es are to prepare one report showing the ap rr�x2_te .c nt_r equired o aw e State Employees' n whic�w Sbe ruC amen etas outlined above _2 4. Should Actuaries encounter in the valuation any unusual situation or should Actuaries be requested by Agency to make further valuations of different combinations of benefits and contributions, which might require an additional expenditure of time, said situation and request shall be brought to the attention of the Board of Adminis- tration, State Employees? Retirement System, for further consideration. F 424a-2 2-50 100 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 Retire- ment System with credit for service rendered as employees of Agency, necessary for performance of the work described in paragraph 2. Both parties also under- stand 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 Re- tirement 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 agency, the sum of $ 150.75 , subject to adjustment on account of variation in the number of employees for whom data are submitted as provided in paragraph 4 hereof, from the number of such employees stated in paragraph 2, and subject to any adjustment made on account of any unusual situation, or on account of further valuations of different combinations of benefits and contributions re- quested by Agency, as hereinbefore provided. Agency agrees that the sum fixed in this paragraph as compensation for the services to be performed by Actuaries, shall cover only the calculations and conferences between the officers and employ- ees of the Board of Administration and Actuaries, necessary in the performance of the work, excluding conferences between Agency and Actuaries. It is understood and agreed that Agency shall deal only through said Board of Administration. 7. Actuaries hereby agree to render the services herein provided for and to complete the same in a satisfactory and expeditious manner. Actuaries shall fur- nish to the Board of Administration, in addition to data provided herein to be furnished, a written summary in duplicate of the results of the calculations made under this agreement and the compensation provided for herein 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 pro- visions of said law. 14ITNESS OUR HANDS the day and year first above written. Approved by the Board of Administration, STATE EMPLOYEES I RE,TIREIIIENT SYSTEIVi at the meeting held MAY 12 1956 Date MAY 12 1950 By 7ij- Executive Oface came 4 or COATES, HERFURTH and ENGLAND., a co -partnership composed of: Carl E. Herfurth Arthur W. England F 424-3 11-49 iou