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HomeMy WebLinkAboutRESO 5006, ' •• • ORIGINAL RESOLUTION NO. RESOLUTION OF THE COUNCIL OF TiiW0eITY 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 OF PALO ALTO WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies ·and "their e1'1ployees in the Public Employees' Retirement System by the execution 0£ a contract, and sets fc,rth the procedure by which gaid public agencies may elect to subject themselves and their employees to amendments to said law1 and WHEREAS, one of the steps required in the procedure to amend this contract is the adoption by the legislative 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 changes proposed in said contract; and WHEREAS, a summary of the major provisions of the proposed changes is set forth in EXHIBIT B, which described the amendments which will take effect upon the approval of the text of 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 that 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 is hereby. given. INTRODUCED AND PASSED: September 18, 1974 AYES: Beahrs, Berwald, Clay, Comstock, Henderson, P~arson, Rosenbaum, Sher NOES: None ABSENT: Norton ~ YMifuiqer · Mayor . a:/voz~_ ?J q_{(-~/0.A.._ ' ·i •. :/' / ,,._ i:_E~eP_f7 .. • • • -• mtIBJ.U ~... AJIBIDME2i'l' TO CON'l'RACT BE1.'WEEN THE ,, ' ~ABD O!' ADMINISTRATION ~?.£,, me EMPLOYEES. RETIREMENT SYSTEM ~~--. . AKD 1liE . .--t · ~~ ·'"'~ Cift COUNCIL ~"-•• ~~ ~ • OP' mg ~ ~. ,,~£7-~ . Clft OP PALO ALTO ~ ~,t;l~ l!oard of Admini.stration, Public Emp1oyees1 Retirement System, hereinarter referred to as Boa.rd and tbe CITY COUNCIL of the CITY OE' PALO ALTO, hereinafter ~erred to as Public Agency having entered into a contract under date of March q, 1942, effective January l, 1942, as amended e:t'fective January l, 1948, April l, 1949, January l, 1952, July l, 1954, l'ebrua.ry 1, 1956, November 1, 1964, September 2', 1968, December 14, 1970, February l, 1.974, and Jul.y a, 1974, and as provided 'b7 Chapters 170 and ·316, Statutea of 1971, "Nhich proviC.·? for participation of Public Agenc7 in said System, l3oard and Public Agency hereby agree as follows: A. Paragraphs l tbroiigh 9 are hereby st:ricken fr<>m said contract as executed effective January 1, 1942, and are hereby replaced. by the following para- graphs muabered l through 9 inclusiv~; ' ·l. .lll words and texms used herein wh:1ch are defined lD ·:.he Pq.blic Employ- ee.-' Retirement Law shall have the meaning as defined therein unless otherwise specii'.icall;r prori.ded. 1'.N'ormal retirement age" shall mean a,ge 60 for misGellE...neou& members and age 50 for local. f'iremen and locel polieemie!l.~ 2. Public Agency shall participate 1n the Public Employees' Retirement --· S7stem from and after January lt 1942, making its employees as here- inafter provid£·l, members of said System subject to all provisions ot the Public Employees 1 Retirement Law except such as apply only on election of a contracting agency and are not ;.•rovided r...,r herein and to ell amendments to said Law hereafter enacted except such as b7 ezpreso provisions thereof' appl.7 only on the election of contracting agencies. 3. Employees of Public J.gency in the following classes sbal.l. become mem- bers of said Retirement Systeia excep'\ su~ in each such class as are excluded by law or this agreemen~: a. Local. :tiremen (herein referred. to as local safety JReJl\.bers); b. Lo~ policemen (herein re~erred to as local saf'ev members); c. B:mployeea other than local safety members (Hrein rderred to as miscellaneous members). D.e following employees shall be excluded t'roa 11e11bership in said Retirement System: • PBBOONS COJIPniSA~ Olf .1B HOURLY BASIS HI.RED ON OR AFTER NOVEllBER l, 1964 • .. • • ~-4. ~~on of :tin.al. compensation to be provided for sach year or ~<Ii·~ prior and current service as a miscellaneous memb ... r shall · ~'~provided in Section 21251.l} of said Retirement Law. // ~..;) . . ~k~e :traction of final coq>ensation to be proVided for each year ot ~<lo ... ,-r:edi.ted prior and current service as a local safety member sbal.l ~'-~~·be 1ibat provided in S 0 ection 21252.0l of the :Retirement Law. . .. ~~if.~i}. fhe following additional provisions of~ the Public Employees 1 Retire-( · <t.,. :ment Le.w which apply upon election of a contracting agenc,-shall ~~ apply to the Public Agency and 1 ts employees: a. Section 20952.5 (proVidi.ng fl)r age 55 as the mininm voluntarT re1i1.rem.ent age for local policemen with benefit payments com- aenc:ing prior to age 55 subject to actuarial di.acount). 'b. Section 21380-7 (providing for allowan(~es for surrlTors of mem-. bera covered under the program upon death before retirement). c. Seo'tlon 21222.l (providing :ro:-increases 1n allowances to which 1ibe annual cost-of-livJ.ng provisions apply, payabl.e for tim·.? com- aencing on ·the first dS3 of the calendar month coinciding with or next following the effective date of' this amendment to or on account ot persons ret:ired or members deceased. on >r prior to l>eceaber 31, 1970). 7. Public Agency s!Jal.l. contribute to said Retirement s,-stem es follows: a.. \Tith respect to miscellaneous 111eJJ1bers, the public a.ge."l~Y shall co11tribute the :following percentages of mnthl.7 sa.l.aries earnecl as lliscellaneous members of said System: (l) 0.33 percent witil June 30, 2000 on account ot the liability' for pr:Lor service benefi~ •• (2) 7.67 percent on account o! the JiaMlitJ-:tor current service benefits. (3) l.00 percent on account of the. lia'bili'Q' for the l959 Sur'l'i.vors program. (4) 0. 76 percent U?ltil Januaey' 31, 1977 w prov-tde tor benefits under Section 21222.l of the Government Code. b. With resp~ct to local. saf'etJ" members, the public agenc;r shall con- tribute the :tol·lowing perceI!tages ot montbJ.7 salaries earned as local safety :members of said System: · (1) 0.5,1 percent un-Ul June 30, 1981 on account ot the liab111."tJ" for prior service benefits. · (2) 20.152 percent on account ot the llabi.lit.f tor current senice bener+ta. · · • ,. Bet. Pora 7C2-2 .... • . . -• • . (3) 0.041 percent on account of the liabili v for the 1959 Survivora program.. (4.) l.270 percent until January 31, 1977 to pron.de ror beneti.ta linder Section 21222.1 of the Government Code • • c. J. reasonable amunt per annum, ss fixed by Board to cover the costs of administering said System as it affects the employees of Public A&enc7, not includir.g the costs o:t special valus.tions or the period- ical inveatiga ti.on and valuation required b7 law. d. A. rea&')nable &110unt as .fixed b7 the Board, payable in one install.- ment as the occasions arise, to cover costs of special valuations on account ot emplo1ees of Public Agenc1, end costs of the period- ical 1nves1dgation. and valuation required by law. - 8. Contributions required by PUblic Agency and its employees shall be sub- ~ect to adjustment by Board on account of amendments to the Public Bmplo7ees' Rett.rem.ent Law, and on 9.Ccount of tbe experience under the Retirement System, as.determined by the periodical i.nvestigatiob and 'Y&luation required by said Betirement Law. 9. Contributions required of Public Agency ar-l its employ.:.es shall be paid ·by l'a.blic Agency to the Retirement System within thirty days after the end of the period to whi.ch said contributions refer. If more or· iess ·. ~ the correci. amc"mt of co:ntrib.itiona is paid !or any period, p:t'Oper edjustment shall be made in co?mection with e'J.bsequent remittances, or adjustments on account of errors in contributions reqUireli ot any employee 1D8Y' be made by direct ca.sh p~nts between the employee and Board. P~ts by Pu.blic Agenc1 to »oard may be made in the f("rm of warrants, bank cilecks, bank drafts, certified ch.eeks, money orders, or cash.. .. D. !his amendment sball be attached to said contract and shall be ettective on the day' of • Wi tnes·s our hands tb1 '"l ----------dq of-------------· l10ABD OP AD.MINISTB.l!ION PUBLIC EMPLOYEES' RETIBDEft smm11 BY.._·-~----------------William E. P831le, Executive Ott:l.cer . ' • Cifi COO»CIL 01 mE ~fi OP PAJJJ AL:O Attest: Clerk • . Jlet. Pora 702-3 .... .. .... ' , .· MEMBERSHIP , • • EXEIBIT B SUMMA..llY OF MAJOR PRO\'J'SIONS Local Safety Members -2% at 50 !Cetirement Program Me.iabership is compulsory for all employees t other than elective officials; wt . .J are employed one-half time or m0re • . .. . SERVICE RETIREMENT The c~rliest :etircr:ent age is 50; the normal retiTernent age is 50: and the C<Dpulsory retirement age is 60. A local safety member may retire any tii:r.a after age 50 provided he has at le·as t 5 years of service. 'l'be JDOntbly income is det·.?rmined by age at retirement, years o~ credited service. amd "final compensation". The latter term means the average monthly salary (excluding overtime) earned during the final 36 consecutive mon.ths tmlos member ~pecifically requests another 36 consecutive ~cnth period. '1'he· unmodified life. allowance will be "2% of final compensation" for each year of safety service upon re~irement at age 50 with increasing percentages to a maximum. of· 2.7% at retirement at age 5S. Service retirement benefit is subject to a limitation of 75% of final compensation • . A minimum service retirement allr.•.11ance of $10v per month is g;1aranteed upon compulsory retirement with credit for prior service. DISABILITY RETIREMENT An employee becoming disabled to the extent that he is incapable of performing his duties shall be retired for disability. His disability will be either employment connected (industrial disability) or otherwise {nonindustrial disability). An employf·e who b~comes dJs:ibled vhile a member of this System for reasons arising out of his employment, will be eligible for a life income of "fifty (50%) per- cent of his final compensation. If his disability is such that he is also en.titled to a disability inco~e fron Social Security, the State System benefit will be reduced by the mnount of bis Soci'1l Security benefit • • ' . • .· • • ,, _,...,: An employee becoming disabled for reasons not connected with his employaient shall be eligible for disability retirement provided he has at least 5 years of service; such dis~bility allowance is equal to 1.8% of final compensation for each year of service, with a guarantee of 1/3 of such final compensation for most employees who have rendered at least 10 years of service. The "ordinary" disability retirement allowance shall under no circumstances exceed the service retirement a!lowance which would become p?vable at age 60 if employment could be continued to that age. ~Am BENEFITS P@ath Before Retirement ' Basic Death Benefit This benefit is a refund of the meinber's accumulated contributions plus six months' salary provided he bas been a •ember for six-years or more. For those who die before completing six years of :membership, the benefi: is one month's salaTY for each year of membership plus refund of contributions. The salary referred to is that earned during the year preceding death. Prior service do•.:s not count toward this benefit. ~dustrial Death If death is service-connecte-t in the jud.:.1Dent of the llld·?Strial Accident Commission, a monthly income is paid to" the widow for life (or until remarriage) instead of the .clJove basic death benefit. However, i.f she is also eligible for sunivor benefits from Social Security becal.ise of the member's death, the State system benefit will be reduced by the amount of siJc.'l Si,citil ::>ecu&:"ity so lo-ug as Social Secnrity benefits are payable (usually until the youngest child reaches 18 and after the widow reaches age 62). The total, including Socia~. Security, would be 50Z of "final compensation". If death was caused by external violence or physical force, the total benefit (including Social Security) would be ".ncr~ased ;o the follow- 1J1g percentages of "final compensation" so long as the widow lives and does not remarry: Widow with 3 or more children under 18 Widow vi th 2 children under 18 . Widow with l child wder 18 1957 Survivor Benefit Emplo~ees with·5 c~ more years of service who have reached the minimum age for service retirement have further death protection under this item. Here the surviving widow can elect to receive either the basic death benefit or a monthly income equal to one-aalf the unmodified retirement allowance the employee was eligible for on the date of his death. 'nle monthly income lasts until the widow's death or remarriage with. a guarantee that the System ~ill pay as much as under the basic death benefit. 1959 ~urvivor Benefit A monthly allowance shall be paid to certain sur- vivors of a member who dies before retirement. I ~· . . · • • ,, . . • "'· -Death After Retirement 1.be death benefit is $500. lbis is in addition to any payments which might be ·ID.3de under an . .optional ret1rement benefit chosen by the member at retireDJent. ' URMINATION or EMPLOYMENT Upon termination of employment, an employee with at least S years of service may either leave his contributions with the System and rec~ive, upon attaining retirement age. the retirement benefit he has earned, or he cay withdraw his contributions (plus iD~erest), thus terminating his membership in the System and receiving no retirement benefits. Except, (1) a member with less t:llan 5 years of· service shall not have the privilege of leaving his contributions vi th the System, but shall automatically have his contributions, plus interest, refunded upon termination uf employment, and (2) a aP.JDber who is transf~rring to employment with another agency which is covered under the System shall not have the right of withdrawing his accumul~ted contributions. EMPLOYEE cONtRI:SUTIONS "Each member·mak~s monthly contributions to the System -hich are dea~ct.ec from his s&lary. The rate of contribution (percentage of pay) is 9% of .salary earned, exclusi~e of overtime, on the date this formula becomes effective. 'l'he employer also contributes to-..rard the ccst of the benefit~. The c::ount con- tributed by ~he employer for current service retirement benefits will, on the average exceed the cost to the employee. In addition, the employer be3rs the entire cost of pri,1r service benefits, the industrial death and disability benefits. All contribution rates are t ·.abject to revision b7 the noard of Administration. . I ' ' .