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CC RESOLUTION 1534J `i RESOLUTION NO. 1534. RESOLUTION OF INTENTION TO APPROVE AMEND- MENT TO CONTRACT PROVIDING FOR PARTICIPA- TION IN STATE EMPLOYEES' RETIREMENT SYSTEM. WHEREAS, the State Employees' Retirement Law permits the participation of public agencies in the State Employees' Retire- ment 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 percentage of final compensation for each year of service as "Member", and providing for the portion of compensation to be included in compu- tations under said laws; 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 be- tween 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 provi- sions 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 insurance company, the Director of Finance, a member of the State Person- nel Board, and an official of the University of Cali- fornia. 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 ser- vice 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, - 1 - S!as a 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 aver- age monthly salary during the five years immediately pre- ceding retirement, unless the Public Agency elects to provide prior service benefits at less than the full amount. For other Agency employees, the monthly al- lowance, 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 dur- in the five years immediately preceding retirement, for each year of service after the effective date of par- ticipation, plus approximately 1 /70th, or less as may be provided in said contract by the Public Agency for its employees, of "final compensation" or of the aver- age monthly salary during the three years immediately preceding 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 ser- vice retirement age, or a minimum allowance 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 disabledfrom injury arising out of and in the course of employment, is permitted only after ten years of service and upon proof of inca- pacity 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 year of service, with a guarantee of 25% of said salary, sub- ject to certain restrictions and modifications. 7. Disability retirement of local firemen and local police- men, in the event of disability arising out of and in the course of employement, is permitted regardless of age and service, the monthly retirement allowance being one -half the average monthly salary during the five years immediate- ly 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 1 /12th of the member's annual salary during the year immediately preceding death, for each year, not ex- ceeding 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 x$400 is payable. - 2 - . i 9. The monthly allowance payable to the widow and children, at the death of local firemen and local policemen aris- ing out of and in the course of employment, is one -half the average monthly salary during the five year immedi- ately 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 resignation or dis- charge, may elect irrevocably, within ninety days, to leave contributions in the Retirement Fund, and then upon reaching the lowest optional service retirement age or becomming disabled, to be entitled to receive such re- tirement allowance as will be provided by their and the Agency's contributions and their credited service, re- gardless of service rendered. 11. Contributions required of local firemen and local police- men, 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 $14.35 at entry age 35. Contributions of firemen and policement having credit for prior service depend on salary, entry age, and amount of rior service, the amount of contributions per :100 being 6.33 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 S stem, the contributions per $100 of salary varying from 14.62 at age 20, to 17.99 at age 64, for men, and from $5.36 at age 20, to 9.45 at age 64, for women, all based on the Public Agency's election of age 60 as the lowest op- tional 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 $7.36 at age 20, to $10.$$ at age 59, for men, and from $8.35 at age 20, to $12.81 at age 59, for women. 13. The Agency is required to contribute the balance of 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 safe- guarded by a provision authorizing the Board of Adminis- tration 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 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 El Segundo in said Retirement System, a copy of said amendment being attached hereto, marked "Exhibit A", and by reference made a part hereof. - 3 - j lij _k PASSED, APPROVED AND ADOPTED this 1 7th day of August, 1955. Vl «_W2 Mayor pro tem of the City of ATTEST: E1 Segundo, California. City Clerk (SEAL) EXHIBIT A AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION STATE EMPLOYEES' RE- TIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF EL SEGUNDO The Board of Administration, State Employees' Retirement System, and the CITY COUNCIL of the CITY OF EL SEGUNDO, hereinafter re- ferred to 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 exclusive of amendments thereto which changed benefits and ages of retirement, said Board of Administration and said CITY COUNCIL hereby agree as follows: 1. Paragraph 8 of said Contract shall be and is hereby stricken from said Contract. 2. The following paragraphs shall be added to said Contract: 8. The provisions of Section 21367.51 of the State Employees' Retirement Law, providing a $400 death benefit after retirement SHALL APPLY to persons who are members because of employment by Public Agency. 15. The provisions of Section 20024.01 of the State Em- ployees' Retirement Law, which provide that „final compensation" shall mean the highest average annual compensation earnable by a member during any period of three consecutive years during his membership in the System, SHALL APPLY to employees of Public Agency who become members of said Retirement System. 16. The provisions of Section 20952.5 of the State Employees' Retirement Law which provide age 50 as the minimum vol- untary retirement age for Local Firemen and Local Police- men SHALL APPLY to employees of Public Agency who be- come members of the Retirement System as Local Firemen or Local Policemen. - 4 - 3. The cost of such application, except paragraph 8, not lending itself to ready determination in advance, shall be determined by the Board of Administration at the prop- er time and in the same manner as other contributions thereafter required of Agency under said Contract, and any adjustment determined by the Board as necessary shall be included in the contributions thereafter required of Agency under said Contract. 4. The amount shown in paragraph 9d shall read $25,7$6.14. 5. The percent stated in paragraph 9e shall be amended to read 9.095. 6. This amendment shall be attached to said Contract and shall be effective as of Witness our hand this BOARD OF ADMINISTRATION STATE EMPLOYEES' RETIREMENT SYSTEM President Attest: Executive Officer STATE OF CALIFORNIA, ) COUNTY OF LOS ANGELES, ) SS. CITY OF EL SEGUNDO. ) day of , 1955. CITY COUNCIL OF THE CITY OF EL SEGUNDO Presiding Officer Attest: Clerk I. Neva M. Elsey, 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 re- solution, being Resolution No. 1534 , was passed and adopted by the said City Council, approved and s gned by the Mayor pro tem of said City, and attested by the City Clerk of said City, all at an adjourned regular meeting of the said Council held on the 17th day of August, 1955, and that the same was so passed and adopted by the following vote: AYES: Councilmen Frederick, Gordon and Mayor pro tem Swanson, NOES: Councilmen None; ABSENT: Councilman Baker and Mayor Selby. WITNESS my hand and the official seal of said City this 17th day of August, 1955. (SEAL) - 5 - la�ra, City Clerk of the sty of E1 Segundo, Califo nia.