CC RESOLUTION 2840• RESOLUTION NO. 2840
RESOLUTION OF DUETnION TO APPROVE AN
A1104D.MnT TO C01?TRJkCT BEFdEEN THE
BOARD OF ADMINISTRATION OF THE
PUBLIC E14PLOYEES' RErIRKNEWT SYSTEM
AIM TH E
C1TY COIGN 1:L
OF Tit
CITY OF EL SEC; UNDO
WHIMEII%S the Publi-c Employees' Retirement Law permits the participation o".4f,
public agencies and their employees in the Public Employeest'
Retirement System by the execution of a contract, and sets forth the
procedure by which said public agencies may elect to subject them-
selves and their employees to amendments to said lair; and
WHEREAS, one of the steps in the procedure to amend this contract is the
adoption by the governing body -of the public agency of a resolution
giving notice of its intention to approve an amendment to said
contract, which resolution shall contain a summary of the change(s)
proposed in said contract; and
WH-1-11EAS, the -following is a statement of the proposed change(s):
Provide as the basic retirement formula for Fire
members the Full 21c @ r0 formula instead the
present Full. 55 formula, a summary of L
Lhe ilafor
Toro visions of the proposed, formula being attached
as an Exhibit.
qM'WrOREJ% BE, IT RESOLVERDY that the governing body of the above agency
gives, and it does hereby give notice of intention to approve an
amendment to tide r-
:: contract between the said governing, body and the
Board of Administretion of the Public Employees' Retirement Syst-em,
a copy of said amendment being attached hereto, es an
and by this reference made a part hereof.
CITY COUNCIL of the
CITY OF EL SEGUNDO
3Y�
AT TEST: '1
Namet
C;T
rk
(S E -P, f-,)
TVIaLch 21,_1973
(Da'(-,e adopted and approved)
CON-1212' (1/-(8)
(Title)
AWI&AI h
APPROVED AS TO FGRj�
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AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF EL SEGUNDO
The Board. of Administration, Public Employees' Retirement System, herein- -
after referred, to as "Board ", and the ,governing body of above public agency,
hereinafter referred to as "Public Agency ", having entered into a contract
under date of August 25, 1943, effective October 1, 1943 and as amended
effective November 1, 1947, August 1, 1949, July 1, 1950, November 1, 1955,
September 1, 1958, March 9, 1959, November 7, 1964, October 19, 1968, December
11, 1971, July 20, 1974, July 19, 1975, and July 16, 1977, which provides for
participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
A. Paragraphs 1 through 8 are hereby stricken from said contract as
executed effective July 19, 1975 and hereby replaced by the
following paragraphs number 1 through 9 inclusive:
1. All >wo::ds and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otberwise specifically provided. "Normal retirement age„
shall mean .age 60 for miscellaneous members and age 50 for local
safety members.
2. Public Agency shall participate in the Public ,Employees' Retirement
System from and after October 1, 1943, making its employees as
hereinafter provided, members of said System subject to all provisions
of the Public Employees' Retirement Law 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 provisions thereof apply only on the election of contracting
agencies.
3. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class
as are excluded by law or this agreement:
a. Local Firemen (herein referred to as local safety members);
b. Liacal Policemen (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
miscellaneous members).
In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not
become members of said Retirement System:
NO ADDITIONAL EXCLUSIOUS
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4. The fraction of final compensation to be provided for each year of
credited prior and current service as a miscellaneous member
upon retirement at normal retirement age shall be that provided
in Section 21251.13 of said Retirement Law with all service
prior to Social Security termination September 1, 1958
subject to the reduction provided by said section.
5. The fraction of final compensation to be provided for each year
of credited prior and current service as a safety member shall
be determined in accordance with Section 21252.01 of said
Retirement Law (2% at age 50).
6. The following additional provisions of the Public Employees, Retirenlent
Law which apply only upon election of a contracting agency shall apply
to the Public Agency and its employees:
a. Sections 21263 and 21263.1 (providing upon the death of a
member who retired for service or disability for continuance
of a post-retirement survivor allowance to certain survivors).
b. Sections 21380-21388 (providing for allowances for survivors
of members covered under the 1959 Survivor's Program upon the
member's death before retirement).
C. Section 21222.1 (providing a five-percent increase in allowance
to Which the annual cost -of- living provisions apply, payable
for time coLumencing on the first day of the calendar month
coinciding with or next following the effective date of the
amendment to add this section to this contract, to or on account
of members retired or deceased on or prior to December 31, 1970).
d. Section 21222.2 ipproviding a five-percent increase in allowances
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to which the annual cost-of-living provisions apply, payable for
time commencing on the first day of the calendar month coinciding
with or next follow-Ing the effective date of the amendment to
add this section to this contract, to or on account of members
retired or deceased on or after January 1, 1971 but before
July 1, 1971).
e. Section 20930.3 (allowing Public service credit under the
provisions of Chapter 830, Stats. 1976, for up to four years
of continuous military or merchant marine service).
7. Public Agency shall contribute to said Retirement System as follows:
as With respect to miscellaneous members, the agency shall
contribute tine following percentages of monthly salaries
earned. as miscellaneous members of said Retirement Systet,1:
(1) 0.350 percent until June 30, 1980 on account of the
liability for prior service benefits.
(2) 9.260 percent on account of the liability for current
service benefits.
(3) 0.060 percent on account o,;
1959 Survivor Program. the liability for the
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(4) 0.470 percent until August 30, 1978, on account of the
liability for the benefits provided under Section
21222.1 and /or 21222.2 of said Retirement Law.
b. With respect to local safety members, the agency shall
contribute the following percentages of monthly salaries
earned as local safety members of said Retirement System:
(1) 0.111 percent until .June 30, 20U1 on account of the
liability for prior service benefits.
(2) 27.219 percent on account of the liability for current
service benefits.
(3) 1.130 percent until August 30, 1978 on account of the
liability for the benefits provided under Section
21222.1 and /or 21222.2 of said Retirement Law.
c. A reasonable amount per annum, as fixed by the 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 valuations
required by lair,
d. A reasonable amount as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of
special valuations on account of employees of Public Agency,
and costs of the periodical investigation and valuations
required by law.
8. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the
Public Employees' Retirement Lacy, and on account of the experience
under the Retirement System as determined by the periodical
investigation and valuation required by said Retirement Law.
9. Contributions required of Public Agency and its employees shall
be paid by Public Agency to the Retirement System within thirty
days after the end of the period to which said contributions
refer or as may be prescribed by Board regulation. If more or
less than the correct amount of contributions 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 wade by
direct cash payments between the employee and the 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.
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B. This amendment shall be attached to said contract and shall be effective on
the day of 19
Witness our hands this day of
4 19
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIRE14ENT SYSTEM OF THE
CITY OF EL SEGUNDO
7 1
BY Carl J. U I ngeF. Executive -officer BY Presiding Officer
Approved as to form:
Attest:
Legal Office, PERS Clerk
I
APPROVEiD AS TOFOR11
C014-702-4
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SZI 7UII:Y OF J,aTo1: PI�O','iSIOrfS
Local Saf et;.,- ! Iembers - 2," at 50
Fetirement Program
k,,onpulsor-T for all emplo,,ees except ti:ose specif icall;; cxc,lu e ;. ??xclssio :-.
include; (1) stlecial contract excl.zsions: (2) who �aorl, less than ha.--'
time; (3) emnlow-ees who workk half time or more but wl,o will work six nontl- :s or
less; (Q temporary or seasonal full-ti-Me e,-plo7,rees •.•rho will work si_.V nont'r :s or
less.
Six: IG�!I :E;,T
The earliest retirement a;e is 50; the nor=mal retirement a�-e is 50; and t'r;e
compulsory retirement age is 60. A local safety Member may retire an' time after
a.. 50-provided he either has at least 5 ,;Tears of service or has attained "he
co=mpulsory ret=irement age.
The monthly income is determined by a e at retirement, years of credited
service, and "final compensation ". The latter term means the averace monthly
salary (excluding overtime) earned Burin- the final 36 consecutive months unless
member specifically request another 36 consecutive month period.
The unmodified life allowance will be "Z ", of final compensation" for each
year of safety service upon retirement are 50 with increasing percentages to a
max mum. of 2.7;° at retirement at a;e 55. Service retirement benefit is subject
to a limitation of 75' of final compensation.
A tinirnum service retirement allowance of <M0 per month is guaranteed upon
cOLI ulsory retirement with credit for prior service.
DISABILITY iY TIR=11 iiT
An employee becomin disabled to the extent that he is incapable of perform -J -
hisdaties shall be retired for disability. His disability will be either
connected (ind=ustrial disability) or othezairise (nonindustrial disability).
An employee who becomes disabled while a member of this System for reasons
arising out of his employment, will be eli. -side for a life income of fi.ft -v
percent of his final compensation. if his disability is such that he is also
entitled to a disability income from Social Security, the State System benefit
will be red1.;ced by .the amount of his Social Sec,,wity benefit.
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An employee becominc, disabled for reasons :lot connected With his er. ploy..!er t
shall be eli;ihle for disability retirement provided i.e lias ?t 1 -east � years of-
service. This disability allowance is equal to I.z, of final compensation for
each year of service, with a ;guarantee of 1/3 of final compensation for roost
em- lo-rees who have rendered at least. 10 years of. service:. The "ordinar;;r d.i_s-
ability" retirement allowance shall under r,o circumstances exceed the service
retirement allowance which would become payc.:)l..e to aj;e :--0 if emplo,,rment- coull
oe continued to that age.
DEATH' B "IIi r ITS
(1) Death rsefore_'-f;etirement
Basic Death Benefit: This benefit is a refund of the me ~l"uer'
accumulated contributions plus six months' salary .provided
lie was a member for six years or more. For those ur 1 no die
before completing si.x years of membership, the iaene41 -1 t is
one month' S salary for each ;yreay. of me.: oerstlip plus refund
Of contributions. The salary referred i;o is that earned
during the year precedin,_ death. Prior service does not
count toward this be efi
Industrial ;:each Benefit : if death is service - connected in t ?:e
jud�7,;rrient of the Industrial Accident sion, a io:ithl,
income is paid to the spouse or life (or until rer<la.rria!e)
1-ristead of the aL-ove 'basic death `;ene:f it. t.0wever, if t..
spoke is also el.i:'ihle for s'.Lrvivor benefits from, `.social
Security benefits are payable (usually :ntil_ t,,e �,�'c ngest
child react:
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2 70
"temporary annuity" installments a-,3 an,, ?ne,;efits pa;raale
an option chose at retirement.
Death After Retirement
One -half Continuance provides upon the death of a local safety
who has retired for service, or disability, for the continuance c):'
one -half the retirement allowance to certain survivors.
T3,i iT :1'�TIO?, CI' Ee PLOf l l;T
Upon termination of employ _= ent, a member with at least 5 years of service d_a:,-
either leave JJs contributions with 't'liRS and receive, upon attaining retirement a -e,
the retirement benefit he has earned, or he may withdraw his contributions (plats
interest), thus terminating his membership in tl.e Sy stem and receiving no retireriel -,
benefits. Exceptions: (1) a member with less than 5 years of service shall not
have the privilege of lcavin�, his contributions with the System, but shall
auto =matically have his contributions, plus interest, refunded upon ter.aination
employment and (2) a member who is transferring to eimpl,o-%;ment with another aflen^ --
w :hich is covered under the System shall not have the r5 ght of withdra;in� his
accumulated contributions.
1,:PLOYEE CO'ITRIBUTI0I�33
Each member makes =monthly contributions to t ;e System which are deducted
from his salary. The rate of contribution (percenta;_,e of gross pay) is 9: .
The employer also contributes toward the cost of the benefits. The amount
contributed by the employer for current service retire tent benefits will, on ti
-e
average, exceed the cost to the employee. in addition_, the employer bears t, ",e
entire cost of prior service benefits.
All employer contribution rates are subject to revision by t ;e board of
Administration.
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDf4 )
I, Valerie A. Burrowes City Clerk of the
City of El Segundo, California, ISO 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. 2840
was duly 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 21st day of March 1978
and that the same was so passed and adopted by the following vote:
AYES: Councilmen Benson, Bue, Nagel,
Van Vranken and Mayor Balmer
NOES: Councilmen None
ABSENT: Councilmen None
WITNESS MY HAND AND THE OFFICIAL SEAL OF SAID
CITY this 27th day of March 1978
(SEAL)
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City Clerk
of the City of El Segundo, California
2 57-11