CONTRACT 537I AmendmentAMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
GOVERNING BODY OF THE
CITY OF EL SEGUNDO
®z/ (1 1-7 f
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the CITY COUNCIL Governing Body of the CITY OF EL SEGUNDO,
hereinafter referred to as Public Agency, having entered into contract under date of
August 25, 1943) effective October 1, 1943, and as amended effective November 1, 1947,
August 1, 1949) duly 1, 1950, November 1, 1955, September 1, 1958, March 9, 1959,
November 7, 1964, and October 19, 1968, which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 9 are hereby stricken from said contract as executed effec-
tive October 1, 1943, and are hereby replaced by the following paragraphs numbered
1 through 8 inclusive:
1. All words and terms used herein which are defined in the Public Employees'
Retirement Law shall have the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age" shall mean age 60 for mis-
cellaneous members and age 55 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 provision thereof apply only on the elec-
tion of contracting agencies.
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. Employees other than local safety members whose positions are not subject
to Federal Social Security coverage (herein referred to as miscellaneous
Group A members);
d. Employees other than local safety members whose positions are subject to
Federal Social Security coverage (herein referred to as miscellaneous
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
..
Ret. Form 990 -1
4. The following provisions shall apply to miscellaneous Group A members and
safety members only:
a. 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 shall be 2% and shall be applied as provided in
Section 21251.13 of said Retirement Law.
b. The fraction of final compensation to be provided for each year of
credited service as a local safety member shall be determined in accord-
ance with Section 21252.1 of the Retirement Law.
c. Benefits on account of prior service shall be 100, of the fraction of
final compensation specified for miscellaneous members in Paragraph 4 (a)
above but computed in accordance with Section 21253 of the said Retire-
ment Law and for local safety members shall be 1006 of the fraction
established in accordance with Paragraph 4 (b).
d. Contributions for miscellaneous members shall be subject to Section
20603 and 20602 respectively of said Retirement Law.
e. The following additional provisions of the Public Employees' Retirement
Law which apply only upon election of a contracting agency shall apply:
(1) Section 21258.1 (providing a minimum retirement allowance of
$1200.00 per year subject to certain conditions).
(2) Section 21365.5 (providing for a monthly allowance in lieu of the
basic death benefit for certain survivors of a member who dies in
employment after qualifying for voluntary service retirement).
(3) Section 21380 -7 (providing for allowances for survivors of Group A
and local safety members covered under the program upon death before
retirement).
(4) Section 20952.5 (providing for age 50 as the minimum voluntary
retirement age for local safety members with benefit payments
commencing prior to age 55 subject to actuarial discount).
(5) Section 21251.35 (providing for the recalculation of allowances pay-
able for time commencing July 1, 1950 to the amount the persons
retired prior to July 1, 1950 would have been receiving if the pro-
visions of the contract as amended July 1, 1950 had been in effect
at retirement.
(6) Section 21251.6 (providing for increases in allowances payable for
time commencing November 1, 1964 to persons retired prior to
January 1, 1962).
(7) Section 21251.75 (providing for increases in allowances payable for
time commencing on the first day of November 1, 1968 to persons
retired prior to January 1, 1967).
(8) Section 21264 (providing upon death of a local safety member who
retired for service or industrial disability for the continuation
of one -half the retirement allowance to service retirement).
Ret. Form 990 -2
5. The following provisions shall apply to miscellaneous Group B members only:
a. The effectivity of membership in Group B shall be September 1, 1958, or
later entry into employment as a miscellaneous member.
b. 1/50 shall be the fraction of final compensation to be provided upon re-
tirement at normal retirement age for each credited year of current
service as a miscellaneous member subject to the modification set forth
in subparagraph (d) below.
c.. Benefits on account of each year of prior service shall be 100 percent
of the fraction of final compensation provided under the Law and this
contract for current service benefits earned by service at the date of
membership.
d. The fraction of final compensation specified in subparagraph (b) above
shall be reduced as to service in any period after January 1, 1956 for
members covered under the Federal Social Security by one -third as applied
to that part of final compensation which does not exceed $400 per month.
e. The retirement benefits payable upon retirement for ordinary disability
shall not be affected by the modification provided in Paragraph 5 (d) of
this contract as amended except that for the purposes of the limit on
any such allowance imposed under Section 21297, Government Code, allow-
ances for retirement for service shall be computed according to the
formula set out in Paragraph 5(d). All other provisions of this contract
shall be fully applicable to the computation of allowances upon retirement
for disability.
f. Contribution rates of miscellaneous Group B members shall be subject to
Section 20603 and providing for a reduction in rates of contribution as it
relates to the first $400 of monthly compensation and 100, of such rates
as they apply to the remainder of the monthly compensation. Contributions
of miscellaneous Group B members accumulated as of September 1, 1958 were
applied to retroactive payments of contributions for Social Security
coverage as provided in Section 20498 Government Code.
g. The following additional provisions of the Public Employees' Retirement
Law which apply only upon election of a contracting agency shall apply:
(1) Section 21258.1 (providing a minimum retirement allowance of
$1200.00 per year subject to certain conditions).
(2) Section 21365.5 (providing for a monthly allowance in lieu of the
basic death benefit for certain survivors of a member who dies in
employment after qualifying for voluntary service retirement).
(3) Section 21251.35 (providing for the recalculation of allowances pay-
able for time commencing July 1, 1950 to the amount the persons
retired prior to July 1, 1950 would have been receiving if the pro-
visions of the contract as amended July 1, 1950 had been in effect
at retirement.
Ret. Form 990 -3
(4) Section 21251.6 (providing for increases in allowances payable for
time commencing on November 1, 196+ to persons retired prior
to January 1, 1962).
(5) Section 21251.75 (providing for increases in allowances payable for
time commencing on November 1, 1968 to persons retired prior to
January 1, 1967).
6. Public Agency shall contribute to said Retirement System as follows:
a. With respect to miscellaneous members, the public agency shall contribute
the following percentages of monthly salaries earned as miscellaneous
members of said System:
o
(1) 0. percent until June 30, 19 T9 on account of the liability for
prior service benefits.
(2) percent on account of the liability for current service benefits.
b. With respect to local safety members, the agency shall contribute the
following percentages of monthly salaries earned as local safety members
of said System:
(1) 0 Q10 percent until June 30, 2001 on account of the liability for prior
service benefits.
(2) 13.5+3 percent on account of the liability for current service
benefits.
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 the periodical investi-
gation and valuation required by law, providbd that said amount shall be
determined on the basis of the number of employees of Public Agency who
are reported as members on the payroll covering one month of each year
to be designated by the System 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, payable in one installment as
the occasions arise, to cover costs of special valuation on account of
employees of Public Agency, and costs of the periodical investigation and
valuation required by law.
7. Contributions required of Public Agency and its employees shall be subject to
adjustment by Board on account of amendments to the Public Employees' Retire-
ment Law, and on account of the experience under the Retirement System as
determined by the periodical investigation and valuation required by said
Retirement Law.
Ret. Form 990 -4
8. 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. 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 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.
B. This amendment shall be attached to said contract and shall be effective on
the 11th day of December, 1971
Witness our hands this 8th day of November
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AlIiam E. Payne, cutiv fficer
GOVERNING BODY OF THE
Attest:
Cif AuCl k ...
4.
(Seal)
Ret. Form 990 -5