CC RESOLUTION 897RESOLUTION NO. 897
RESOLUTION OF IN'T'ENTION TO APPROVE
AMENDMENT TO CONTRACT PROVIDING FOR
PARTICIPkXION IN
STATE EMPLOYEES' RETIREMENT SYSTEM.
WHEREAS, the State Employees' Retirement Law permits
the participation of public agencies in the State Employees'
Retirement System, by the execution of a contract making their
employees members of said System, and sets forth the procedure
by which said public agencies may elect to subject themselves
and their employees to amendments to said law increasing bene-
fits and reducing ages of retirement; and
WHEREAS, one step in said procedure is the adoption
by the legislative body of the public agency, of a resolution
giving notice of its intention to approve an amendment to a
contract between said governing board and the Board of Adminis-
tration of said Retirement System, providing for said parti-
cipation, which said resolution shall contain a summery 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 a life in-
suranoe 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 attainment
of age 55 by local firemen and local policemen,
and age BO or age 55 at the election of the Public
Agency, by other employees, and completion of
twenty years of service for the Public Agency, and
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Is compulsory at age 65 for local firemen and local
policemen, and at age 70 for other employees.
3. The monthly retirement allowance payable upon re-
tirement for service is dependent upon such factors
as age, sex, salary and years of service. For local
firemen and local policemen, retiring at age 55 in
paragraph 2, or at a higher age with 20 years of
service, the monthly allowance is approximately one -
half the average monthly salary during the five years
immediately preceding retirement, unless the Public
Agency elects to provide prior service benefits at
less than the full amount. For other Agency employees,
the monthly allowance, upon retirement at age 65 if
the Agency elects 60 as the lowest optional service
retirement age, is approximately 1 /70th of the average
monthly salary during the five years immediately pre.
ceding retirement, for each year of service after the
effective date of participation, plus approximately
1 /70th, or less as may be provided in said contract
by the Public Agency for its employees, of the average
monthly salary during the three years immediately pre-
ceding the effective date of participation, for each
year of service prior to that date. Upon retirement
at age 60, if the agency elects 55 as the lowest
optional service retirement age, the fraction is
approximately 1 /60th instead of 1 /70th.
4. A minimum service retirement allowance of $40 per
month is guaranteed upon retirement at age 70 with
credit for service rendered prior to said effective
date, if the Public Agency elects age 60 as the
lowest optional service retirement age, or a minimum
allowance of $60 per month upon retirement at age 65
or over with twenty years of service, or upon
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retirement at age 70 with credit for prior
service, if the Public Agency eleots age 55 as
the lowest optional service retirement age.
5. Retirement for disability, except in the case of
local firemen and local policemen disabled from
injury 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.
6. The monthly retirement allowanoe payable upon
disability retirement, described in preceding
Item 5, is dependent upon such factors as age,
salary and years of service, but generally is
equal to 90,% of 1/70th, or 1 /60th as the case
may be, 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.
7. Disability retirement of local firemen and local
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.
8. The benefit payable at death before retirement,
except in the case of local firemen and local
policemen dying from injury arising out of and in
the course of employment, consists of the contribu.
tions of the member plus interest, and plus 1 /12th
of the member's annual salary during the year imme-
diately preceding death, for each year, not exceeding
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six years, of service as a member of the system.
Upon death after retirement, and at the election of
the Public Agency, a benefit of $300 is payable.
9. The monthly allowance payable to the widow and
children, at the death of local firemen and local
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.
10. The benefit upon separation from service by other
cause than death or retirement, is the refund of the
member's contributions, with interest. Members having
accumulated contributions of at least $500 upon re-
signation or discharge, may elect irrevocably, within
ninety days, to leave contributions in the Retirement
Fund, and then upon reaching the lowest optional
service retirement age or becoming disabled, to be
entitled to receive such retirement allowance as
will be provided by their and the Agency's contri-
butions and their credited service, regardless of
service rendered.
11. Contributions required of local firemen and local
polioemen, without credit for prior service, depend
upon salary and upon age of entry into the retirement
system, the contributions per $100 of salary varying
from $7.63 at entry age 21 to 614.35 at entry age 35.
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 $loo being $16.33 for example, at entry age 54,
with 19 years of prior service.
12. For other Agency employees, the contributions depend
upon salary, sex and age of entry into the retirement
system, the contributions per $100 of salary varying
from $4.83 at age 20, to $7.45 at age 64, for men,
4.
and from $5.83 at age 20, to $8.50 at age 64,
for women, all based on the Publio Agenoy'e
election of age 60 as the lowest optional service
retirement age. If the Public Agency elects age
55 as the lowest optional service retirement age,
the contributions per '100 of salary vary from
07.22 at age 20, to $10.26 at age 59, for men, and
from $8.51 at age 200 to $11.61 at age 59, for women.
13. The Agency is required to contribute the balance of
the funds necessary to meet the cost of the benefits
provided under the retirement system for the Agency
employees. The Agency also is required to pay its
proportionate share of the administrative costs of
the system.
14. Ability of the Retirement System to pay benefits is
safeguarded by a provision authorizing the Board of
Administration to revise contributions of both em..
ployees and the Agency, in the light of experience
under the system.
BE IT RESOLVED, that the City Council of the City of
E1 Segundo, California, give, and it hereby gives notice of
Intention to approve an amendment to the 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 amendment being attached hereto, marked "Exhibit A ",
and by reference made a part hereof.
City Council of the
CITY OFIEL SEaUNDO, CALIFORNIA
91
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STATE OF CALIFORNIA, )
COUNTY OF LOS ANGELES, ; 88.
)
CITY OF EL SEGUNDO. )
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 is
five; that the foregoing resolution, being Resolution
No. 897, was passed and adopted by the said City Council,
approved and signed by the Mayor of said city, and attested
by the City Clerk of said pity, all at a regular meeting of
the said Council held on the 17th day of September, A. D.,
1947, and that the same was passed and adopted by the
following vote, to wit:
AYES: Councilmen Baker, Peterson, Skelley and
Mayor Selby;
NOES: Councilmen None;
ABSENT: Councilman Thompson.
470 lerk of a of
E1 Segundo, California.
( SEAL)
F
EXHIBIT A
AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION,
STATE EMBLOYEES1 RETIREMENT SYSTEM
AND CITY COUNCIL
Governing Body
OF THE CI TY OF EL SEGUNDO
Name of Public Agency
The Board of Administration, State Employees'
Retirement System, and the aty council of the
(Governing Body
CSt9_oof E1 $ do hereinafter referred to as Agency,
Name of Public Agency
having entered into a contract under date of ,August 25. 1943.
effective October 1. 1943. which provides for the partici-
pation of said Agency in said Retirement System and said
contract
a. being based on the retirement law as that
law existed prior to amendments adopted in
1945, increasing benefits and reducing ages
of retirement;
b. having set forth City Firemen as excluded
employees, and
o. having stated 60 years as the minimum age for
voluntary service retirement for Polloemer},
said Hoard of Administration and said C1t_v_ Council , hereby
Governing Body
agree as follows:
1. Paragraphs 4, 5, and 6 shall be and are hereby stricken
from said contract.
2. The following paragraphs shall be and are hereby added
to said contract:
4. Age 60 shall be the normal minimum age for
retirement for service, of persons who are
miscellaneous members because of employment by
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public agency, that is, members other than
Local Firemen and Local Policemen, and
one - sixtieth shall be the fraction of
final compensation, as defined in said
Retirement Law, to be provided on the average,
for each year of service as a member, by the
members' and Public Agency's normal oontribu-
tions, upon retirement at said minimum age.
5. Benefits on account of prior service, that is,
service credited hereunder as rendered to Public
Agency prior to the effective date of partioi-
pation, to respective persons who are members
because of employment by Public Agency as Local
Firemen or Looal,Polioemen, shall be allowed
only as a percentage of the average salary
specified in said Retirement Law, for each year
of such service, and said percentage shall be
100 Der cent of the fraction of final oompen-
sation, as defined in the State Eaployees'
Retirement Law, for each year of service
rendered after said date, as determined for
said respective members under said law, for
retirement for service at age 55, or upon
qualification for service retirement at a higher
age. If a member retires for service before
attaining age 55, his prior service pension
shall be reduced to that amount which the
value of the pension as deferred to age 55
will purchase at the actual age of retirement.
6. Prior service benefits to persons who are mis-
cellaneous members because of employment by Public
Agency, that is, members other than Local Firemen
and Local Policemen, upon retirement for service
2.
at the normal minimum age entered in paragraph
4 hereof, shall be allowed only as a percentage
of the average salary specified in said Retire.
ment Law, for each year of such service, and
said percentage shall be 100 per cent of
one- sixtieth . If a member retires for service
before attaining the normal minimum age in item
41 his prior service pension shall be reduced to
that amount which the value of the pension as
deferred to said minimum age will purchase at
the actual age of retirement.
7. The provisions of Section 21258b of the State
Employees' Retirement Law, guaranteeing a minimum
retirement allowance under certain conditions
shall apply to persons who are miscellaneous
members because of employment by Public Agency.
S. The provisions of Section 21367.5 of the State
Employees' Retirement Law, providing a 0300 death
benefit after retirement shall apply to persons
who are miscellaneous members because of employ.
meat by Public Agency.
9. Public Agency shall contribute to said Retirement
System as follows:
d. The sum of 87,288.99 per annum, payable
in equal monthly or less frequent install.
mente as Board shall require, for the
period of years stated in Enid contract,
less the time elapsed from the date of
participation to the effective date hereof.
6. 11.582 per cent of total salaries paid
by Public Agency each mouth to its employees
who are members of said Retirement System,
provided that only salary earned as members
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.r
of said System shall be included in said
total salaries, and the employees who are
members of said System shall include employees
who become members upon the effective date
hereof and employees who become members thereafter.
f. A reasonable amount per annum, as fixed by Board,
payable in equal monthly or less frequent in-
stallments, as Board shall require, to cover
the costs of administering said System as it
affects the employees of Public Agency, not
including the costs of special valuations or
of the periodical investigation and valuation
required by law, provided that said amount
shall be determined on the basis of the number
of employees of Public Agency who are members
on July 1 of the respective fiscal years, or
with respect to the first year of participation,
on the effective date of said participation.
g. A reasonable amount as fixed by 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
Public Agency, and the costs of the periodical
Investigation 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.
Contributions required of Public Agency and its em-
ployees shall be subject to adjustment by the Board
of Administration on account of amendments to the State
Employees' Retirement Law, and on account of experience
under the Retirement System, as determined by the
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periodical investigation, valuation and determi.
nation provided for by said Retirement Law.
10. Contributions required of Public Agency under
paragraph 9 immediately preceding, and contribu.
tions required of Public Agency's employees who
are members of said System, shall be paid by Public
Agency to the State Employees' Retirement System
within thirty days after the end of the month or
longer period to which said contributions refer.
If more or lees than the correct amount of contri-
bution required of Public Agency or its employees
is paid for any period, proper adjustment shall be
made in connection with subsequent remittances of
Public Agency to the Board, to rectify the errors;
or such adjustments on account of errors made in
contributions 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 Public Agency to Board may be made in
the form of warrants, bank checks, bank drafts,
certified checks, stoney orders, or cash.
3. Benefits, including retirement allowances, prior to the
effective date of this amendment, shall not be affected
by this amendment.
4. "to exclude City Firemen' appearing in Paragraph 3 of
said contract shall be amended to read: "No Additional
Exclusions."
b. Any adjustment necessary in the contributions required
of the City of E1 Se undo on account of the
t ame o io Agency)
inclusion of I4 oal Firemen under the Retirement System,
shall be determined by said Board of Administration on
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the basis of the results of the investigation and
valuation required by Section 20127 of the State
Employees' Retirement Lax, as of July 1, 1950, and
that said adjusted contributions shall be effective
when certified by said Board of Administration.
6. "60" appearing in Paragraph 3 of said contract as
the minimum age for voluntary service retirement of
City Policemen shall be amended to read: 055 ".
7. This amendment shall be attached to said contract and
shall be effective as of November 1 1947.
Witness our hand this _ day of 1947.
GJ.ty Council of
"Acme o eg s t ve bow
CITY OF EL SEGUNDO
Vame or u cy --'
BY
Attest: Presi - ,"ffioer
Cler�—
BOARD OF ADMINISTRATION
STATE EMPLOYEES' RETIREMENT SYSTEM
BY
Attest: President, Board of Administration
Secretary
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