CC RESOLUTION 177289 �2
RESOLUTION NO. 1772
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT
TO THE CONTRACT BETWEEN THE BOARD OF ADMINIS-
TRATION OF THE STATE EMPLOYEES* RETIREMENT SYS-
TEM AND THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO.
WHEREAS, the State Employees' Retirement Law permits the
participation of public agencies and their employees in the State
Employees' Retirement System by the execution of a contract, and
sets forth the procedure by which said public agencies may elect
to subject themselves and their employees to amendments to said
law; and
WHEREAS, Section 21702 of the Government Code provides
that a contract between a public agency and the Board of Adminis-
tration 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, Retirement System members in police type posi-
tions are not generally eligible for Federal Old -Age, Survivors,
and Disability Insurance coverage, and therefore must be separated
from the Retirement System members whose benefits from the System
are to be reduced in connection with the establishment of Old -Age,
Survivors, and Disability Insurance coverage; and
WHEREAS, Federal and State law permit the present mem-
bers (other than policemen and firemen) of a retirement system to
choose individually whether they wish to be covered by Federal Old-
Age, Survivors, and Disability Insurance; and
WHEREAS, it is the intention of this governing body to
allow employees of this agency to exercise such choice and, fur-
ther, to provide an appropriately modified program of retirement
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$9:3
system benefits and contributions for such employees as elect to
be covered by Federal Old -Age, Survivors, and Disability Insurance;
and
WHEREAS, it is required than an election be held among
members of the system before members may be given such choice; and
WHEREAS, one step required in procedures for contract
amendments 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 re-
tirement plan; and
WHEREAS, the following is a summary of the major changes
to be accomplished by said amendment:
A. Miscellaneous members of the retirement system shall be
divided into two groups as follows:
Group A shall consist of those members who, on division
date, do not elect to be covered by Federal Old -Age,
Survivors, and Disability Insurance;
Group B shall consist of:
1. All members who choose to be covered by Federal
Old -Age, Survivors, and Disability Insurance;
2. All employees who are not miscellaneous members
on the date the retirenent system is divided,
but who become miscellaneous members thereafter;
3. All Group A members who terminate their membership
after separation from employment and thereafter
re -enter employment and become miscellaneous mem-
bers; and
4. All future employees who become miscellaneous mem-
bers.
B. Benefits for local safety and miscellaneous Group A mem-
bers shall not be changed by this amendment nor shall
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there be any change in benefits of miscellaneous Group
B members on account of service prior to the effectiv-
ity of membership in the Group B classification. Bene-
fits earned and rates of contribution on account of
service thereafter shall be changed as follows:
1. The retirement allowance per year of service for
a miscellaneous Group B member upon retirement
at age 60 shall be 1/90 of "final compensation"
up to and including $350.00 per month and 1/60
of such "final compensation" as is in excess of
$350.00 per month.
2. Any miscellaneous Group B member retiring from ser-
vice before age 65 who is fully insured under Feder-
al Old -Age, Survivors, and Disability Insurance may
elect to have the actuarial equivalent of his un-
modified 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
anticipated the member will be entitled to re-
ceive at age 65, plus
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 Group
B member with respect to compensation for such ser-
vice 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 allowance payable upon retirement for service.
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NOW, THEREFORE, BE IT RESOLVED, that the City Council of
E1 Segundo gives, and it does hereby give notice of intention to
amend its contract between said City Council and the Board of Ad-
ministration of the State Employees' Retirement System to provide
for a modification of benefits and adjustment of rates, a copy of
said amendment being attached hereto marked "Exhibit ATM, and by
this reference made a part hereof; and be it further
RESOLVED, that written explanatory statements be furnished
to each employee who is or may become a retirement system member
affected by these changes, which statements shall contain a summary
of the proposed changes and a notice that an election on the pro-
posed changes and on the question whether members shall be permitted
to choose individually whether to be covered under O.A.S.D.I., will
be held among eligible employees; and be it further
RESOLVED, that such election is hereby authorized to be
conducted not less than fifteen nor more than thirty days after
issuance of such explanatory statements, and that the City Clerk is
hereby designated and appointed to conduct such election in accord-
ance with law, regulations, and this resolution, including the is-
suance of proper explanatory statements and notices to eligible
employees.
PASSED, APPROVED AND ADOPTED this 23rd day of December,
1957.
AST;
City Clerk
(SEAL)
Mayor o t—he C ty of Segundo,
California
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6
E X H I B I T 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 Sys-
tem, hereinafter referred to as Board, and the CITY COUNCIL of the
CITY OF EL SEGUNDO, hereinafter referred to as Public Agency, hav-
ing entered into a contract under date of August 25, 1943, effective
October 1, 1943, and as amended effective November 1, 1947, June
2$, 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 con-
stitutes Paragraph Number 1 of said agreement:
"except such as apply only on election of a contract-
ing 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 3 to 16 inclusive are hereby stricken from
said contract as executed August 25, 1943, and as amended
effective November 1, 1947, June 2$, 1950, and November
it 1955, and are hereby replaced by the following para-
graphs numbered 3 through 9 inclusive:
3. Employees of Public Agency in the following classes
and groups shall become members of said Retirement
System except such in each such class and group as
are excluded by law or this agreement:
a. Local Firemen (herein referred to as local safety
members);
b. Local Policemen (herein referred to as local
safety members);
c. County Peace Officers and Constables (herein re-
ferred to as local safety members);
d. Employees (other than local safety members) whose
positions are not subject to Federal Social Securi-
ty coverage (herein referred to as miscellaneous
Group A members);
e. Employees (other than local safety members) whose
positions are subject to Federal Social Security
coverage (herein referred to as Group B Members).
In addition to the employees excluded from membership
by said Retirement Law, the following employees shall
not become members of the Retirement System:
No additional exclusions
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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 specific-
ally provided. "Normal retirement age" shall mean
age 60 for miscellaneous members in Group A, age 60
for miscellaneous members in Group B. and age 55 for
local safety members.
5. The following provisions shall apply to local safety
and miscellaneous Group A members only:
a. 1/60 shall be the fraction of final compensation
to be provided for each year of credited current
service as a miscellaneous Group A member upon
retirement at normal retirement age.
b. Benefits on account of each year of prior service
shall be 100 per cent of the fraction of final
compensation provided under the Law and this con-
tract for each year of current service upon re-
tirement for service.
c. The following provisions of the State Employees*
Retirement Law which apply only upon election of
a contracting agency shall apply:
(1) Section 21251.1 (providing for a guaranteed
percentage of final compensation for each
year of current service as a miscellaneous
Group A member).
(2) Section 21252.4 (providing for a guaranteed
percentage of final compensation for each
year of current service as a local safety
member).
(3) Section 20024.01 (defining "final compensa-
tion" on the basis of a period of 3 consecu-
tive years).
(4) Section 21258(b) ( roviding a minimum retire-
ment allowance of 720.00 per year subject to
certain conditions .
(5) Section 21367.51 (providing a $400.00 death
benefit upon death after retirement).
(6) Section 20025 (providing for inclusion of
compensation without limit in computations
of benefits).
(7) Section 20952.5 (providing for age 50 as the
minimum voluntary retirement age for local
firemen, local policemen, or county peace of-
ficers).
(8) Section 21251.3 (providing for the recalculation
of allowances to persons retired on or prior
to July 1, 1950, for time commencing July 1,
1950, provided that no allowances are to be
decreased by such recalculation. "Final com-
pensation" for such recalculation shall be
determined in accordance with Section 20024
instead of Section 20024.01).
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6. The following provisions shall apply to miscellaneous
Group B members only:
a. 1/60 shall be the fraction of final compensation
to be provided upon retirement at normal retire-
ment age for each credited year of current service
subject to the modification set forth in subpara-
graph "c" below.
b. Benefits on account of each year of prior service
shall be 100 per cent of the fraction of final
compensation provided under the Law and this con-
tract for current service benefits earned by ser-
vice at the date of membership.
c. The fraction of final compensation specified in
subparagraph "a" shall be reduced to 1/90 for
application to the first $350.00 per month of
final compensation in the computation of service
retirement allowances on account of service credit-
ed after the effectivity of membership in the
Group B classification.
d. Any miscellaneous member who, upon retirement for
service before age 65, is fully insured under
Federal Old -Age, Survivors, and Disability Insur-
ance may elect to receive the actuarial equiva-
lent of his unmodified service retirement allow-
ance in the form of an increased monthly income
until he reaches age 65, and a reduced income
thereafter in accordance with Government Code,
Section 21703.
e. The retirement benefits payable upon retirement
for ordinary disability shall not be affected by
paragraph 6c of this contract as amended and for
the purposes of the limit on any such allowance
imposed under Section 21297, Government Code, al-
lowances for retirement for service shall be com-
puted according to the formula set out in para-
graph 6a of the contract as amended both as to
service before and after the effectivity of mem-
bership in the Group B classification. All other
provisions of this amendment shall be fully appli-
cable to the computation of allowances upon re-
tirement for disability.
f. Contributions to be made by miscellaneous Group
B members with respect to service rendered after
the effectivity of membership in the Group B
classification shall be at two - thirds the rate
provided in said Retirement Law for the "1 /60"
formula as that rate applies to compensation
which is equal to or less than $350 per month
(or its equivalent for any other pay period) and
at 100 per cent of such rate as it applies to
compensation which is in excess of $350 per month
(or its equivalent for any other pay period).
g. The following provisions of the State Employeest
Retirement Law which apply only upon election of
a contracting agency shall apply:
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c8979
(1) Section 21251.1 (providing for a guaranteed
percentage of final compensation for each
year of current service as a miscellaneous
member).
(2) Section 20024.01 (defining "Final Compensa-
tion" on the basis of a period of 3 conse-
cutive years).
(3) Section 21258(b) (providing a minimum re-
tirement allowance of $720.00 per year).
(4) Section 21367.51 (providing a $400.00 death
benefit upon death after retirement).
(5) Section 20025 (providing for inclusion of
compensation without limit in computations
of benefits).
7. Public Agency shall contribute to said Retirement Sys-
tem as follows:
a. The sum of $25,786.14 per annum in installments
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 prior service.
b. per cent of total salaries paid by Pub -
lic Agency each month to its employees who are
and hereafter become members of said Retirement
System, provided that only salary earned as mem-
bers 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 repsect to the first year
of participation, on the effective date of said
participation.
d. A reasonable amount as fixed by the Board, payable
in one installment as the occasions arise, to cov-
er costs of special valuations on account of em-
ployees of Public Agency, and costs of the periodic
investigation and valuation required by law.
8. Contributions required bf Public Agency and its em-
ployees shall be subject to adjustment by Board on
account of amendments to the State Employees' Retire-
ment Law, and on account of experience under the Re-
tirement System, as determined by the periodical
investigation and valuation required by said Retire-
ment law.
9. Contributions required of Public Agency and its em-
ployees shall be paid by Public Agency to the Retirement
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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 con-
nection with subsequent remittances, or adjustments
on account of errors in contributions required of
any employee may be made by direct cash payments be-
tween 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.
D. This amendment shall be attached to said contract and shall
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 SEGUNDO
By
rP esi ing 0 fice
Attest:
Clerk
Approved by the Board of Administration, State Employees' Retirement
System, at the meeting held
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF EL SEGUNDO
SS.
I, __..Eunice.._U. Cxeas_on ....................... 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 ----- . Reaolutl0. rx. .N9.. ... 1 ?72 ................... 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
---- 23- rti --- .... day of ------- De.Q. ember --------------------- ----- -- 195. ?_..., and that the same was
so passed and adopted by the following vote:
AYES: Councilmen ... --- - - - - --
............ ----------- --...... -------------- ..................... ----------------- --------------- -
NOES: Councilmen ... N- aup- -------- ------------------------------------ ----- --- - - --
ABSENT:. C c=11me- a-Freder1ak_. and.. fiord on --
WITNESS my hand and the official seal of said City this.2.1ni .................day of
December
T
-�`-- - —------------ --�
c_._e- --
City Clerk of the City of
El Segundo, California
(SEAL)
8944