CC RESOLUTION 1743'e
RESOLUTION OF INTENTION NO. 1743
RESOLUTION OF INTENTION TO PROVIDE MODIFICA-
TION OF BENEFITS UNDER STATE EMPLOYEES1 RE-
TIREMENT SYSTEM IN CONNECTION WITH COVERAGE
UNDER FEDERAL OLD -AGE AND SURVIVORS INSURANCE.
WHEREAS, Section 21702, Government Code, provides that
a contract between a public agency and the Board of Administra-
tion may be amended to modify benefits and adjust contributions
if the California State Social Security Agreement of March 9,
1951, is modified to include employees of the public agency in
positions covered by the System; and
WHEREAS, one step required in procedures for amendment
is the adoption by the governing body of a public agency of a
Resolution of Intention giving notice of intention to amend its
contract with the Board of Administration, which Resolution shall
contain a summary of the major changes to be made in the retire-
ment plan; and
WHEREAS, the following is a summary of the major modi-
fications to be accomplished:
1. The retirement allowance per year of service for a
miscellaneous member upon retirement at age 60 shall
be:
(a) 1/90 of "final compensation" up to and including
$350.00 per month and 1/60 of such "final com-
pensation" as is in excess of $350.00 per month
insofar as such allowance is based on service on
and after the effective date of the amendment to
the contract;
(b) 1/60 of "final compensation" insofar as such al-
lowance is based upon service before the date of
the amendment to the contract.
2. Any member retiring for service before age 65 who is
fully insured under Old -Age and Survivors Insurance may
elect to have the actuarial equivalent of his unmodi-
fied service retirement allowance paid in two parts as
follows:
(a) A temporary annuity which shall not exceed the
primary Social Security benefit which it is an-
ticipated the member will be entitled to receive
at age 65, plus
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(b) A life income such as may be provided by the
remaining actuarial value of his service re-
tirement allowance.
3. The contributions to be made by a miscellaneous mem-
ber with respect to service rendered after the effec-
tive date of the amendment and compensation for such
service equal to or less than $350.00 per month (or
its equivalent for other than monthly pay periods)
shall be two- thirds of the rate which would otherwise
apply to such members.
4• Benefits payable for death and disability shall not be
affected or modified by modifications in the retire-
ment allowances payable upon retirement for service.
NOW THEREFORE, BE IT RESOLVED, that the City Council of
the City of E1 Segundo, California, gives, and it does hereby
give, notice of intention to amend its contract between said
City Council and the Board of Administration of the State Em-
ployeest Retirement System to provide for a modification of bene-
fits and adjustment of rates, a copy of said amendment being at-
tached hereto marked "Exhibit A", and by this reference made a
part hereof.
PASSED, APPROVED AND ADOPTED this 14th day of August,
1957.
ATT ST:
City Clerk
(SEAL)
EXHIBIT A
yaAf orroo ` t e ty o egun o,
California
AMENDMENT TO CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION STATE EMPLOYEESt RETIRE-
MENT SYSTEM AND THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO
The Board of Administration, State Employees' Retirement
System, hereinafter referred to as Board, and the City Council
of the City of E1 Segundo, hereinafter referred to as Public
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M1.. � W� f
Agency, having entered into a contract under date of August 25,
1943, effective October 1, 1943, and as amended effective Novem-
ber 1, 1947, July 1, 1950, and November 1, 1955, which provides
for participation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Wherever in said agreement the word "City" appears, the
term "Public Agency" is hereby substituted.
B. The following phrase is added to the sentence which
constitutes Paragraph Number 1 of said agreement:
"except such as apply only on election of a
contracting agency and are not provided for
herein and to all amendments to said Law
hereafter enacted except such as by express
provision thereof apply only on the election
of contracting agencies."
C. Paragraphs 4, 5, 6, 7, $, 90 10, 11, 12, 13, 14, 15
and 16 are hereby stricken from said contract as exe-
cuted Agust 25, 1943, and as amended effective November
1, 1947, July 1, 1950, and November 1, 1955, and are
hereby replaced by the following paragraphs numbered
4 through 13 inclusive:
4. All words and terms used herein which are defined
in the State Employees' Retirement Law shall have
the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age"
shall mean age 60 for miscellaneous members and
age 55 for local firemen and local policemen.
5. 1/60 shall be the fraction of final compensation
to be provided for each year of credited current
service as a miscellaneous member upon retirement
at normal retirement age subject to the modifica-
tion set forth in paragraph 7 below.
6. Benefits on account of each year of prior service
shall be 100 percent of the fraction of final com-
pensation provided under the Law and this contract
for each year of current service upon retirement
for service.
7. The fraction of final compensation specified in
paragraph 5 shall be reduced to 1/90 for applica-
tion to the first $350 per month of final compen-
sation in the computation of service retirement
allowances for miscellaneous members on account of
current service credited after the effective date
of this amendment. Any miscellaneous member who,
upon retirement for service before age 65, is fully
insured under Federal Old -Age, Survivors, and Dis-
ability Insurance may elect to receive the actuarial
equivalent of his unmodified service retirement al-
lowance in the form of an increased monthly income
until he reaches age 65 and a reduced income there-
after in accordance with the provisions of Govern-
ment Code Section 21703.
8. The retirement benefits payable upon retirement for
ordinary disability shall not be affected by para-
graph 7 of this contract as amended and for the
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purposes of the limit on any such allowance imposed
under Section 21297, Government Code, allowances
for retirement for service shall be computed ac-
cording to the formula set out in paragraph 5 of
the contract as amended both as to service before
and after the date of the amendment. All other
provisions of this amendment shall be fully appli-
cable to the computation of allowances upon re-
tirement for disability.
9. Contributions to be made by miscellaneous members
with respect to service rendered after the effec-
tive date of this amendment shall be at two - thirds
the rate provided in said Retirement Law for the
"1/60 at 60" formula as that rate applies . to com-
pensation which is equal to or less than $350 per
month (or its equivalent for any other pay period)
and at 100 percent of such rate as it applies to
compensation which is in excess of $350 per month
(or its equivalent for any other pay period).
10. The following provisions of the State Employees}
Retirement Law which apply only upon election of
a contracting agency shall apply to the Public
Agency and its employees:
a. Section 21251.1 (providing for a guaranteed per-
centage of final compensation for each year of
current service as a miscellaneous member).
b. Section 21252.4 (providing for a guaranteed per-
centage of final compensation for each year of
current service as a local safety member).
c. Section 20024.01 (defining "final compensation"
on the basis of a period of 3 consecutive years).
d. Section 21258(b) (providing a minimum retire-
ment allowance of 720.00 per year).
e. Section 21367.51 (providing a $400.00 death bene-
fit upon death after retirement).
f. Section 20025 (providing for inclusion of com-
pensation without limit in computations of bene-
fits).
g. Section 20952.5 (providing for age 50 as the
minimum voluntary retirement age for local fire-
men, local policemen, or county peace officers).
h. Section 21251.3 (providing for increases in al-
lowances payable for time commencing on July 1,
1950, to persons retired on and prior to said
July 1, 1950, except that subparagraph "C" above
is not applicable to allowances granted prior
to July 1, 1950).
11. Public Agency shall contribute to said Retirement
System as follows:
a. The sum of $25,786.14 per annum in install-
ments as Board shall require for 25 years,
less the years elapsed between the effective
date of this contract and this amendment, on
account of the liability for benefits based on
Orior service.
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D.
b. 8.460 percent of total salaries paid by Public
Agency each month to its employees who are and
hereafter become members of said Retirement
System, provided that only salary earned as
members of said System shall be included in
said total salaries.
c. A reasonable amount per annum, as fixed by
Board 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.
d. A reasonable amount as fixed by the Board, pay-
able in one installment as the occasions arise,
to cover costs of special valuations on account
of employees of Public Agency, and costs of the
periodical investigation and valuation required
by law.
12. Contributions required of Public Agency and its em-
ployees shall be subject to adjustment by Board on
account of amendments to the State Employeest Re-
tirement Law, and on account of experience under the
Retirement System, as determined by the periodical
investigation and valuation required by said Retire-
ment Law.
13. Contributions required of Public Agency and its em-
ployees shall be paid by Public Agency to the Re-
tirement System within thirty days after the end of
the period to which said contributions refer. If
more or less than the correct amount of contribution
is paid for any period, proper adjustment shall be
made in connection with subsequent remittances, or
adjustments on account of errors in contributions
required of any employee may be made by direct cash
payments between the employee and Board. Payments
by Public Agency to Board may be made in the form
of warrants, bank checks, bank drafts, certified
checks, money orders, or cash.
This amendment shall be attached to said contract and
S , become effective on the day of
Witness our hands this day of
BOARD OF ADMINISTRATION
STATE EMPLOYEES' RETIREMENT SYSTEM
President
Attest:
Executive Officer
CITY COUNCIL
OF THE CITY OF EL SEGUN 0.
By fir_ _.-.
Presiding is
Attest:
Clerk
Approved by the Board of Administration, State Employees' Retire-
ment System, at the meeting held
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS.
CITY OF EL SEGUNDO
Eunice U. Cresson------- ---- -- City Clerk of the City of El 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. ... 174-3.................. was passed and adopted by the said
City Council, approved and signed by the Mayor of said City, and attested by the
an adjourned
City Clerk of said City, all at A regular meeting of the said Council held on the
.... -14th ------ day of ----- ?L-1 u15t--------- -- --------------- --- - - - - -- 19.57 - - -, and that the same was
so passed and adopted by the following vote:
AYES: Council men. Baker- r - -G.or don - and - .Mayor.. Beni ield ---- ----- ----
.......................... -- ------------------- ------------------- --- ------------------ --- ...........
NOES: Councilmen ... Rome ............. ------- ---- ----- ----- --------- - - - - -- - ------- ------- - - - - --
ABSENT: - C. ours- i.lmen-- Fmderick -- and-- Maschuk--------------------- ---- - - - - --
WITNESS my hand and the official seal of said City this .... -- _22nd ---- - - ...... day of
----- ------- - - - - -- August-------------- - - - - -- 19- .5.7 - -.
- �= -cam? 112 `ate -.... - - - - --
City Clerk of the City of
El Segundo, California
(SEAL)