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HomeMy WebLinkAboutRESO 4933• ,,,,. . • • R.ESOLUTION NO. 4933 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES• RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF PALO ALTO WHEREAS, the Public Employees• Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which saia public aqencies may elect to subject themselves and their employees to amendments to said law; and WHEREAS, one of the steps required in the procedurs to amend this contract is the adoption by the leqislative body of the public agency of a resolution qiving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the changes proposed in said contract; and WHEREAS, a summary of the major provisions of the proposed changes is set forth in EXHIBIT B, which describes the amendments which will take effect upon the approval of the tt:extof the amendments as set forth in EXHIBIT A. Both EXHIBIT A and EXHIBIT B are attached hereto and made a part hereof for all purposes. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. That the City Council of the City of Palo Alto does hereby give notice of its intention to approve the attached. amendment to the contract between the City council and the Board of Administration of the Public Employees' Retirement System, as set forth in EXHIBIT A. INTRODUCED AND PASSED: April 8, 1974 AYES: Beahrs, Berwald, Clay, Henderson, Pearson, Rosenbaum, Sher NOES: None ABSENT: Comstock, Norton A~;~ -rJ .~~ c cerJC APPROVED AS TO FORM: ~r .. ~&>~, Assistant City Attorney APPROVED: L~ City Mifuiger APPROVED: ~4J~ -, . Mayor ._../ )-/_.( ('_ . .,. . • C E R T I F l C A T I 0 N ------------ I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the City of Palo Alto on Monday, , and the original of which is on file i-n"""'"'"t"""h_e......,o"""f'""f""'i_c_e_o-.f..-t .... h_e......,c""'i ...... ty Clerk of the City of t>alo Alto. .. I .~ .•. . • / ·~ "~-. e • ~ ·.' .·} ~~· ~ .. .-. ~ AVENlram.NT TO CONTRACT EE'l'WEEll THE ~' .,, . • BOARD OF AD!llNISTRATION " • ·-:-.·· PUBLIC E?.IPLOYEES 1 RE'.i'IHF.t:ENT SYSTEU . ~ . " . .,. ~ . . " ..; . ...... .AND TlIE CITY COUNCIL OF THE CITY OP P.AL-0 ALTO The Board of .t..dmi::listration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CIT"! OF PALO ALTO, hereinafter referred to es Public Agency having entereci into a contract under date of ?.!arch 9, 1942, effective January l, 1942, a~ amended effective January l, 1948, April 1, 1949, January l, 1952, July 1, 1954, 1''ebruary 1, 1956, llovember l, 1964, September 23, 1968, December 14, 1970, end February l, 1974, and as provided by Chapters 170 e.nd 316, Statutes of 1971, r1hich provide for participation of Public Agency in said System, Board and Public AgencY_ hereby agree as f'oll.ows: A. Paragraphs l through 9 are hereby stricken from said contr~ct a~ executed effective January l, 1942, a.nd are hereby replaced by the following Pa:I"38l"SPhe numbered 1 through 9 inclusive: l. All words end terms used herein Vlbich are defined in the Public Employ- ees' Retirement Law shall have the meaning as defined therein unless otbe:ntl.sc apecit'ically proVid<.>d. "Normal ret-1 rement age" shnll mean age 60 for :misoella..'1eous mecbers, age 50 tor local firemen, and age 2. 55 :tor J.c~al policei:ien. Public Agency shall participate in the Public Employees• Ret-~rement System fro!ll ~'!d after Jenua.r,v-l, 1942, making its employees as here- inafter proyided, members of said System subject to all provisions of the Public Employees• RetireI!lent Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Ln.w hereafter enacted except such as 'by express provisions thereof apply only on the election of contracting agencies. 3. Emplo7ees of Public Agency in the following classes shall become m.eJ:!:- bers of said Retirement System except such in each such .class as are excluded by law or this sgreemen t: a. Local firemen (herein referred to as local safety members);. b. Lt>cal policemen (herein referred to as local safety members); o. Employees other than local safety members (herein rererred to as miocellaneous members). Tho followi.ng employees shall be·excluded from membership in said Re-;trement System: PERSO!TS CO?a:PENSl.TF.D ON AN HOURLY BASIS BlBED ON OR AFTEli NOVE:.imm l, 1964. Bet. Porm 702-l ,. ( / , ·\. .......... \ . . ,. '\j , :4 •. ··. ·~.VtrMtion of final _compensation to be provided tor each year of' ·. ·: '· .e.ri:di tcd prior and current service as a miscellaneous member shall ~-·~ ._j6e that provided in Sec~on 21251.13 of' said Retirement Law. ~- • .... ,. .... ·' I The f'r~ction of final compensation to be p:rovided for each year of credited prior and current service as a local fireman shall be that provided in Section 21252.01 of the Retiremen~ Law nnd for local policcruen shal.l be that provided in Section 21252.l. • 6. The following additional provisions of the Public Employees' Retire- ment Lan which apply upon election of a contract:i..na agency shall apply to the Public Agency and its employee3: a. Section 20952.5 (providing for age 55 as the minimum voluntary retll•c.irent age :tor local policemen with benefit paYI!lents com- meucinc prior to age 55 subject to actuarial db:count). b. Section 21380-7 (providing for allowances for survivors of mem- bers coV"ered under the pro~ upon death be:fott retirement). c. Section 21222.l (provi.ding for increases in allowances to which the em:xual cast-of-1ivinc provisions apply, payable for time com- lllcncing on the first day oi: the calenc~ mnth coinciding with or next following the effective date of this amendment to or on account Of persons retired or members deceased OD Or prior to Decet:l.ber ~l, 1970). 7. Publi.c Agency s.~l contrUr.ite to said Rstircn::ent System as follons: a. Yli th respect to miscellSCLeouB members, the public agenc7 shall contribute the :t:ollovd.ng percente.ges of monthly salaries earned as miscellaneous members ot said System: . . (l) 0.:5, percent until June 30, 2000 on account of the liability for prior service benetits. (2) 7.67 percent ~:>n account of the liability f'or current service benefits. (3) 1.00 percent on account of the liabilit, for t?le 1959 Survivors program. (4) o. 76 percent until J9.!ll.J.arY '.§1, 1977 to provide tor benefits under Section 21222.l or 'tb.e uo?enunent Cocle. · b. 1':1.th respect to local sa:fety members, the public agency shall con- tribute the following percent..<::.ges of mo:ltbly eala.r1es earned. as local cafety members of a3.id systecu (l) 0.444 percent until June 39, 1981 on account r>f the liability for prior &ervic~ benefits. (2) 15. 519 percent on ac~ount of the 11.u.l».ll ty tor current scrnce 'bener11ie. , • (3) 0.056 percent on account of the liability tor the 1959 Survivors program. (4) l.2'ZO percent lllltil January 31, 1977 to provide :tor beneti ts under Section 21222.l or the Government Code. c. A reasonable amount per ar.num, as fixed by Board to cover the costs of admialstering said System as it affects the employees ot Public Agency, not including the costs of special val.uations or the period- ical investigation and valuation required by law. d. A reasonable au..ount as :1'1.xed by the Doard, payable in one install- ment as the occasions nrfse, to cover costs of special valuations on account of employees of Public Agency, and costs of the period- ical investigation and valuation required by law. 8. Contributions required by Public Agency and 1 ts employees sha.11 be sub- ject to adjustment by Board on account of amendment3 to the Public Employees• Retirement Law, and on account of "the experience 1mder the Betirement System, as determined by the periodical investigation and valuation required by said Betirement Law. g. Contributions required of Pu.blic Agency and its employees shal.l be !>aid. by Public Agency to the Retirement System within thirty days &fter the end of the period to which said contributions re.fer. If more or less than the correct amount of contr:i.butions is paid :tor any per:i.od, proper adjustm3Ilt $hall b~ made in cCi::mection with eubsequ'!nt remi t~ance&, or adjustments O&"l account of errors in co:c.tribut".?ns required of any employee ma.y be ma.de by direct ca.sh pe.yments between the employee and Board. Peyments by Public Agency to Boa.rd 1.'flB.:Y be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. B. This amendment sball be attached to said eontract and sball be effective ~~ -d . 'fitness our hands this _____ ._ ___ _ ~ o~ --------------·· BOARD OP ADMINISTRATIOJ . CITY COO?ICJL oia !l'BE PUBLIC EUPLO"!EES 1 ~ SYSDJI BY...._ ...... ------------------_,_ __ _ William E. P~e, Executive Officer CIH OP PAIJJ ALTO '. ·. ·~ · .. ::~, !. BY.__ ____ ----~~--·-·~---~ Presiding Officer. ... Attest: ' .. Clerk ... . . . ~ . ·. · ... Bet. l'orm 702-5-· .. ME~fflEPSHIP SUMMARY OF MAJOR PROVISIONS Local Firemen ---2% at SO Retirement Program Membership is compulsory for all employees, other than elective officials, who are employed one-half time or more except those excluded under the contract. SERV!C': RETIRE~?fr The e2.l'liest '!"etirement age is SOj the normal retirement a~e is SO; and the compulsory retirement age is 60. A Local. Piremm1 · may retire any time .:ifter age SO provided he has at least S years of service. The monthly income is detel'11?ined by age at retirement. years of credited service, and "final compensation". 11).e latter tem means the averag~ monthly salazy (excluding overtir.ie) earned duTing 'the final 36 consecutive months Wlless member specifically requests another 36 consecutive month period. The umnodified life allowance will be "2% of final compensation" for each year of safety service upon retirement at age SO with increasing percentages to a maximum o~ 2. 7% at retireaent at age SS. Service retirement benefit is subject to a limi'tation of 75% of final compensation. . A minimum service retirement allowance of $100 per month is guaranteed upon compulsory retirement with credit for prior service~ t1SABI LITY RETIREMEYI' An employee becoming disabled to. the-exten~ that he is incapable of performing .his duties shall be retired for disability. His disability will be either employment connected (industrial disability) or otheTWise (nonindustri:il dis:ibility). __ ~ An employee ~'ho becomes disabled while a member of this Systcr.z for Te3sons aTisin~ out of his employment, will be eligible foT a life income of fifty (SOt) per• cent' of hi~ finnl co:::ncns:ition. If his dis;:ibility is sueh that he is also entitled to a disability income from Social Security. the State Syste1:1 benefit will be reduced by the amount of his Social Security benefit. •• An employee becoming dis~bled for reasons not connected with his employment shall .be eligible for disability retirement provided he has at least 5 years of service; Duch disability ~llowance is equal to 1.8% of final com?ensation for each year of •ervice, with a guarantee of 1/3 of such fin411 compensation for most employees who have iendcred at least 10 years of service. The "ordinary" dis.ability retirement allowance ehall under no circur:istances exceed the service retirement allowance which would l»ecome payable at age 60 if employment could be continued to that age. JEATK BENEFITS _Reath Before Retirement Basic Death Benefit This benefit is .a refund of the member's accumulated contributions plus six months 1 salary provided he ha.S been a member for six-years or. more~· For those who die before completing six years of membership, the benefit is one month's salary for each year of membership plus refund of contributions. The salary referred to is that earned during die year preceding death. Prior service does not count toward this benefit. Industrial Death· lf·death is service-connected in the judgment of the Industrial Accident COClmission, a monthly income is paid to the widow for life (or until remarriage) instead of the above basic death benefit. However, if she is also eligible for survivor benefits from Social Security because of the member's death, the Sta:e sys:em benefit wili be reduced by the amount of such Social Security so long as Social Security benefits are payable (usually until the youngest child reaches 18 and after the vidow reaches age 62). The total, including Social Security, would be 50% of '·'final compensation". If death was caused by external violence or physical force, the total benefit (including Social Security) would be increased to the follow- ing perceu ages of "final compensation" so long as the widow lives and does not remarry: Widow vi.th 3 or more children undeT 18 Widow with 2 children under 18 Vidw w1 th l chil.J under 18 75~ 70J 62~ 1957 Survivor Benefit Employees with S or more years of service who have reached the minimum age for service retirement have further death p1:0tection under this item. Here the surviving widov can elect to receive either the basic death benefit or a monthly income equal to one-half the unmodified ~tire1:1ent allowance the employee vas eligible for on the date oi bis death. The monthly inc0tte lasts until the widow's death or remarriage with·a guarantee that the System. will pay as asch as under the basic death benefit. 1959 Survivor Benefit A ~thly allowance shall be paid to certain sur- vivors of a member who dies before xetirement. I ~ , r • • ~ .. . .. Death After Retirement 'lbe death benefit is $500. This is in addition to any payments which might be made under an optional retirement benefit chosen by the member at retirement. -One-half-Continuance provides upon the -death of a local safety member who bas-retired-for-service, or ----· -·--disability, for the continuation-of one-half the retirement allowance to certain survivors. TEBMINATION OF EMPLOYMENT Upon termination of employment, an employee with at least 5 years of service may either leave his contributions with the System and receive, upon attaining retirement age, the retirement benefit he has earned, or he may withdraw his contributions (plus interest), thus terminating his membership in the System and receiving no retirement benefits. Except, (1) a member with less than 5 years of senice shall not have the privilege of leaving his contributions with the System, but shall automatically have his contributions, plus interest, refunded upon termination of employment, a.~d (2) a member who is transferring to employment vi.th another agency which is covered under the System shall not have the right of withdrawing his accumulated contributions. EHPLOr:'...E CONTRIBtrrIONS E~ch member makes mohthly contributions to the System ~ilich·are deducted from his salary.~-The rate of contribution (percentage of pay) is 9% of salary earned., exclusive of overt:ime •. on the date this formula becomes effective. 1'be employer also contributes toward the cost of the benefits. The amo.m.t con- tributed by the employer for cUrre.nt service retirement benefits wi.11, on the average exceed the cost to the employee. In addition, the employer bears .the entire cost of prior service benefits. the induStrial. death and di.Sab:i.lio/ benefits. All contribution rues are subject to xevision by the Board of Administration.