CC RESOLUTION 10083F
RESOLUTION NO. 1008
RESOLUTION OF INTENTION TO APPROVE
AMENDMENT TO CONTRACT PROVIDING FOR
PARTICIPATION IN
STATE EMPLOYEES' RETIREMT 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, providing for a guaranteed per-
centage of final compensation for each year of service as "Member ", and pro-
viding for the portion of compensation to be included in computations under
said law; 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 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 pro-
posed 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 insurance 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 60 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 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 retirement for service
is dependent upon such factors as age, sex, salary and years of
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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, un-
less 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 pro-
vided 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 X40 per month is guaran-
teed 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 allow-
ance of $60 per month upon retirement at age 65 or over with twenty
years of service, or upon retirement at age 70 with credit for prior
service, if the Public Agency elects 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 allowance 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
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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 retirement
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 contributions
of the member plus interest, and plus 112th 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. 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 employment, 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
x$500 upon resignation 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 contributions and their
credited service, regardless of service rendered.
11. Contributions required of local firemen and local policemen, with-
out credit for prior service, depend upon salary and upon age of
entry into the Retirement System, the contributions per x$100 of
salary varying from $7.63 at entry age 21, to $14.35 at entry age
35. Contributions of firemen and policemen having credit for prior
service depend on salary, entry age, and amount of prior service,
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the amount of contributions per $100 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, and from $5.83 at age 20, to $8.50 at age 64, for women,
all based on the Public Agency's 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 37.22 at age 20, to $10.26 at age 59,
for men, and from $8.51 at age 20, 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 employees 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 amend-
ment 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 OF A SEGUNDO, CALIFORNIA
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STATE OF CALIFORNIA, )
COUNTY OF LOS ANGELES, ) SS.
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 Reso-
lution No. 1008, 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
city, all at a regular meeting of the said Council held on the 22nd day of
June, A. D., 1949, and that the same was passed and adopted by the following
vote, to wit:
AYES: Councilmen Baker, Peterson, Swanson, Thompson and
Mayor Selby;
NOES: Councilmen None;
ABSENT: Councilmen None.
(SEAL)
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EXHIBIT A
AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION,
STATE EMPLOYEES' RETIREMENT SYSTEM
AND CITY COUNCIL
Governing Body
OF THE CITY OF EL SEGUNDO
Name of Public Agency
The Board of Administration, State Employees' Retirement System, and
the Cit Council of the City of El Segundo , hereinafter referred to
Governing Body Name of Public Agency
as Agency, having entered into a contract under date of August 25, 1943,
effective October 1, 1943, which provides for the participation of said Agency
in said Retirement System, and said Contract being based on the Retirement Law
as that Law existed prior to amendments adopted in 1947, said Board of Admini-
stration and said Cit Council hereby agree to amend said Contract as
Governing Body
follows:
1. The following paragraphs shall be added to said contract:
11. The provisions of Section 21251.1 of the State Employees'
Retirement Law, providing for a guaranteed percentage of
final compensation for each year of service as a member,
shall apply to persons who are Miscellaneous Members because
of employment by Agency.
12. The provisions of Section 20025 of the State Employees'
Retirement Law, providing for the portion of compensation
to be included in computations under said Law, shall apply
to persons who are members because of employment by Agency.
2. Paragraph 9d of said Contract shall be amended to read:
The sum of $8,899.98 per annum, payable in equal monthly or
less frequent installments as Board shall require, for the
period of years stated in said Contract, less the time
elapsed from the date of participation to the effective
date hereof.
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3. The per cent stated in paragraph 9c shall be amended to
read 9.025 instead of 11.582.
4. Benefits, including retirement allowances, prior to the
effective date of this amendment, shall not be affected by
this amendment.
5. This amendment shall be attached to said contract and shall
be effective as of August 1 , 19 49
Witness our hand this day of 19 49
City Council
Name of Legislative Body
City of El Segundo
Name of Public Agency
By IJm. R. Selby
Attes6: Presiding Officer - Mayor
Victor D. McCarthy,
Clerk.
STATE BOARD OF ADMINISTRATION
STATE EMPLOYEES1 itETI +TT SYSTEM
By
President, Board of Administration
Attest:
Secretary, Board of Administration