CC RESOLUTION 672RESOLUTION NO. 672
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO, CALIFORNIA, DECLARING
ITS INTENTION TO APPROVE CONTRACT PROVIDING
FOR PARTICIPATION IN STATE EMPLOYEES'
RETIREMENT SYSTEM.
WHEREAS, the State Employees' Retirement Act
permits the participation of municipal corporations in the
State Employees' Retirement System, making their employees
members of said System, and sets forth the procedure by
which participation may be accomplished; and
WHEREAS, one step in said procedure is the adoption
by the legislative body of the municipal corporation, of a
resolution giving notice of intention to approve a contract
between said legislative body and the Board of Administration
of said Retirement System, providing for said participation,
which said resolution shall contain a summary of the major
provisions of the proposed retirement system; and
WHEREAS, the following is a summary of the major
Provisions of the proposed retirement system-
1. The System is administered by a board of eight
members, composed of three members of the System,
an official of a bank, an official of an insur-
ance company, the Director of Finance, a member
of the State Personnel Board, and an official of
the University of California.
2. Retirement for service is optional upon attain.
ment of an age which shall be not less than 55
or more than 60, as provided in said contract,
by city firemen and city policemen, and age 60
by other employees, and completion of twenty
years of service for the municipal corporation,
and is compulsory at age 65 for city firemen and
city policemen, and at age 70 for other employees.
3. The monthly retirement allowance payable upon
retirement for service is dependent upon such
factors as age, sex, salary and years of service.
For city firemen and city policemen, retiring at
the optional age in paragraph 2, or at a higher
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age with twenty years of service, the monthly
allowance is approximately one -half the average
monthly salary during the five years immediately
preceding retirement. For other city employees,
the monthly allowance, upon retirement at age 65,
is approximately 1 /70th of the average monthly
salary during the five years immediately preced-
ing retirement, for each year of service after
the effective date of participation, plus appro-
ximately 1 /70th, or less as may be provided in
said contract by the municipal corporation for
Its employees, of the average monthly salary
during the three years immediately preceding the
effective date of participation, for each year of
service prior to that date.
4. Retirement for disability, except in the case of
city firemen and city policemen disabled from in-
jury arising out of and in the course of employment,
is permitted only after ten years of service and
upon proof of incapacity for the performance of duty.
5. The monthly retirement allowance payable upon dis-
ability retirement, described in preceding item 4,
Is dependent upon such factors as age, salary and
years of service, but generally is equal to 90% of
1 /70th of the average monthly salary during the
five years immediately preceding retirement, for
each year of service, with a guarantee of 25% of
said salary, subject to certain restrictions and
modifications.
6. Disability retirement of city firemen and city
policemen, in the event of disability arising out
of and in the course of employment, is permitted
regardless of age and service, the monthly retire-
ment allowance being one -half the average monthly
salary during the five years immediately preceding
retirement.
7. The benefit payable at death, except in the case of
city firemen and city policemen dying from injury
arising out of and in the course of employment,
consists of the contributions of the member plus
Interest, and plus 1 /12th of the member's annual
salary during the year immediately preceding death,
for each year, not exceeding six years, of service
as a member of the system.
8. The monthly allowance payable to the widow and
children, at the death of city firemen and city
policemen arising out of and in the course of em-
ployment, is one -half the average monthly salary
during the five years immediately preceding death.
9. The benefit upon separation from service by other
cause than death or retirement, is the refund of
the member's contributions, with interest.
10. Contributions required of city firemen and city
policemen, without credit for prior service, depend
upon salary and upon age of entry into the retire.•
ment system, the contributions per X100 of salary
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varying from $4.69 at entry age 21, to $8.42 at
entry age 35, for example. Contributions of
firemen and policemen having credit for prior
service, depend on salary, entry age and amount
of prior service, the amount of contribution per
$100 being $13.28, for example, at entry age 59,
with 19 years of prior service.
11. For other city employees, the contributions depend
upon sex, salary and age of entry into the service,
the contributions varying from $3.77 at age 20, to
$6.62 at age 64, for men, and from $4.59 at age 20,
to $7.60 at age 64, for women.
12. The city is required to contribute the balance of
the funds necessary to meet the cost of the benefits
provided under the retirement system for the city's
employees. The city also is required to pay its
proportionate share of the administrative costs of
the system.
13. Ability of the Retirement System to pay benefits
Is safeguarded by a provision authorizing the Board
of Administration to revise contributions of both
employees and the city, in the light of experience
under the system. Now, therefore,
BE IT RESOLVED, that the City Council of the City
of El Segundo, California, give, and does hereby give notice
of intention to approve a contract between said City Council
and the Board of Administration of the State Employees'
Retirement System, providing for the participation of said
City of E1 Segundo in said Retirement System, a copy of said
contract being attached hereto, marked "Exhibit A," and by
reference made a part hereof.
Adopted this 21st day of July, 1943.
CITY COUNCIL OF THE CITY OF
EL SEGUNDO, CALIFORNIA
By r
EXHIBIT "All
STATE EMPLOYEES' RETIREMENT SYSTEM
SACRAMENTO, CALIFORNIA
C 0 N T R A C T
Between
CITY COUNCIL
OF
CITY OF EL SEGUNDO
AND T:IE
BOARD OF ADMINISTRATION
OF THE
CALIFORNIA STATE EMPLOYEES' RETIREMENT SYSTEM
THIS AGREEMENT made this 25th day of August,
19430 by and between the Legislative Body of CITY OF EL SEGUNDO,
hereafter referred to as "City", and the Board of Administration,
California State Employees' Retirement System, hereafter referred
to as "Board."
WITI, ESSETH:
In consideration of the covenants and agreements herein-
after contained and on the part of both parties to be kept and
performed, City and Board hereby agree as follows:
11 City is to participate in the State Employees' re-
tirement System, subject to the provisions of the State Employees'
Retirement Act.
2. City shall participate in said Retirement System,
making its employees members of said System, from and after
October 1st, 1943.
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3. Employees of City in the following classes shall
become members of said Retirement System in accordance with the
provisions of said Retirement Act, governing membership in said
Retirement System, and subject to the further exclusions from
membership in the next following sentence:
CLASSES OF 194PLOYEE3
NUMBER OF Ed'TLOYEES MINIMUM AGE
ELIGIBLE FOR =BERSHIP FOR VOLUNTARY
SERVICE RETIREMENT
ON October 1st, 1943
a. City Firemen, as defined
in Section 8e of the
State Employees' Retire-
ment Act . . . . . . . .
b. City Policemen, as defined
in Section 8b of the State
Employees' Retirement Act 9 60
c. Employees other than City
Firemen and City Police-
men . . . . . . . . . . . 37 As provided in the
Retirement Act
In addition to the employees excluded from membership
by said Retirement Act, the following employees shall not become
members of the Retirement System:
TO EXCLUDE CITY FIREMEN
Board and City agree that, except as provided in pars-
graph 5, no adjustment shall be made in the amount of contributions
provided in paragraph 5a, on account of prior service, or in the
percentage provided in paragraph 5b, because of variations in the
numbers of employees who become members of said Retirement System
on the effective date hereof, from the numbers listed above, due
to termination of service by such causes as death, resignation or
discharge, or the employment of individuals not included in said
numbers.
3a. The provisions of Section 84 of the State Em-
ployees' Retirement Act, shall apply to employees of City, who
become members of said Retirement Syster:.
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4. Benefits on account of prior service, that is,
service credited hereunder as rendered to City prior to the
effective date hereof, shall be allowed to city firemen and city
policemen and to other employees, only as percentages of the
respective average salaries specified in said Retirement Act, for
each year of such service, and said percentages shall be equal to
100 per cent of the analogous percentages now used under said
Retirement System in calculating benefits on account of prior
service, allowed to members of the California State Highway Patrol
and to other employees of the State of California, respectively.
5. City shall contribute to said Retirement System
as follows:
a. The sum of $4,211.90 per annum, payable in
equal monthly or less frequent installments
as Board shall require, for a period of 25
years, on account of the liability for benefits
based on service rendered to City prior to
the effective date hereof.
b. 7.095 per cent of total salaries paid by City
each month to its employees who are members
of said Retirement System, provided that only
salary earned as members of said System shall
be included in said total salaries, and that
employees who are members of said System shall
include employees who become members upon t le
effective date hereof and employees who become
members thereafter.
c. A reasonable amount as fixed by Board, payable
in equal monthly or less frequent installments,
as Board shall require, to cover the costs of
administering said System as it affects the
employees of City, not including the costs of
special valuations or of the periodical investi-
gation and valuation required by law, provided
that said amount shall not exceed $2.00 per
fiscal year per member, on the basis of the
number of employees of City who are members on
July 1st of the respective fiscal years, or
with respect to the first year of participation,
on the effective date of said participation.
d. A reasonable amount as fixed b: the Board,
payable in one installment from time to time
as the occasions arise, to cover the costs of
special valuations on account of employees of
City and the costs of the periodical investi-
gation into the experience under said Retirement
System, as it affects said employees, and the
valuation of the assets and liabilities of said
System on account of said employees.
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Contributions required of City and its employees shall
be subject to adjustment by the Board of Administration on
account of amendments to the State Employees' Retirement Act,
and on account of experience under the Retirement System, as
determined by the periodical investigation, valuation and de-
termination provided for by said Retirement Act.
6. Contributions required of City under paragraph j
immediately preceding, and contributions required of City's em-
ployees who are members of said System, shall be paid by City
to the State Employees' Retirement System within thirty days
after the end of the month or longer period to which said con-
tributions refer. If more or less than the correct amount of
contribution required of City or its employees is paid for any
period, proper adjustment shall be made in connection with sub-
sequent remittances of the City to the Board, to rectify the
errors; or such adjustments on account of errors made in con-
tributions required of employees, may be made by direct cash
payments between the employee in connection with whom the error
was made, and Board. Payments of City to Board may be made in
the form of warrants, bank checks, bank drafts, certified checks,
money orders, or cash.
WITNESS OUR HANDS the day and year first above written.
BOARD OF ADMINISTRATION
ATTEST: STATE EMPLOYEES' RETIREVENT SYSTEM
Secretary BYMARD OV ADMINISTRAT ON Presi ent
CITY COUNCIL OF
ATTEST: CITY OF EL SEGUNDO, CALIFORNIA
By
Clerk Pre s ng 0 icer
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS.
CITY OF EL SEGM= )
I, Victor D. McCarthy, City Clerk of the City
of E1 Segundo, California, do hereby certify that the
whole number of members of the City Council of the said
City if five; that the foregoing resolution, being
Resolution No. 672, was duly passed and adopted by the
said City Council, and signed by the City Clerk of said
City, all at a regular meeting of the said Council held on
the 21st day of July, A . D., 1943, and that the same was
so passed and adopted by the following vote:
AYES: Councilmen Hesser, Peterson, Selby and
Mayor Love;
NOES: Councilmen None;
ABSENT: Councilman Gerow.
City Clerk of' the
El Segundo,
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