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HomeMy WebLinkAboutRESO 5650-' ORIGINAL RESOLUTIOU NO. 5650 RESOLUTIOU OF THE COUJClL OF THE CITY OF PALO ALTO OF IIlTEHTIOU TO APPROVE AU Al-ffitffi!1EUT TO COUTRACT BETHEEI? THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETtr...mrenT SYS~t AUD THE CITY COUNCIL OF THE CITY OF PALO ALTO 'WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their enployees in the Public 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 a~endments to said law; and WHEREAS, one of the steps in the procedure to amend this con- tract is the adoption by the legislative body of the public agency of a resolution giving notice of its intention to approve an amend- ment to said contract, which resolution ahall contain a summary of the changes proposed in said contract; and WlillREAS, the following is a statement of the proposed '~hange to the contract between the City of Palo Alto and the Public Employees; Retirement System: To provide Section 21222.85 (One-time 3%-15% increase to pre January 1, 1974, retirees) for local safety members. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The City Cour~cil of the City of Palo Alto hereby gives notice of ics intention to approve said amendment to the contract between the City of Palo Alto and the Board of Adminis- tration of the Public Employees' Retirement System. -SECTION 2. The estimate of the costs of such change for the City of Palo Alto is set forth in a copy of the valuation report attached hereto 1 marked 11Exhibit AJ" and by this reference incor- porated into said amendment as though therein set out in full. SECTIOU 3. The proposed amendment to the contract is set forth in "Eihlbit B" attached hereto and by this reference made a part hereof. • • SECTIOH 4. The Council finds that this resolution is not a governmental action under the California Environmental Quality Act and, therefore, no environmental impact assessment~is necessary. INTRODUCED AlID PASSED: February 12, 1979 AYES: Brenner, Carey, Clay, Eyerly, Fletcher, Henderson, Sher, Witherspoon NOES: None ABSTElITIOUS : None ABSEUT~ Fazzino Mayor -.,.\ -2- . . PUB;1 .C. E?WI.OYE!';.S 1 nETI'.'E?·:Er ~·! ACTUA!UAL VALUATION HF.PC - .. l'Ell,-.COH-1.A (=tev. 4-78) \ AG!llCY NA?·:E Cit·1 of Palo Alto El-!PIDYEn NO. 0014 ·~--~-------~~--~--~~~~~~--~~~~~~~~-- A. VALUATIQ?: SPE{:ITICATIOHS 1 • Actuarial data as of ___1-1-77 . 2. Formula. 3. Final Compensation Average 4. 1959 Survivor Benefits 5. Post-retirelll'3nt Surviwr Benefits 6. Section 21~22.85: 1 t i.l!le 34-15'%. increase to pre-1-1-74 retirees • B. ACELiCY CO?lTP..IBUTION RATE FOR CUR..'r©n' SEP.VICE (as ;; of member payroll) a • P.etirement benefits . b. Death benefits c. 1959 Survivor Benefits d. Section 21222.85 e. Total current service rate C. AGENCY OO!·rrRIBt.rrION FOR P!UOR SERVICE a. Contribution rate as % or member -pa.yroll until June 30, 1981 D. TOTAL AGEI:CY cm?TRIBUTIONS a. Total Agency Contribut.lon Rate: E. ACl'UARll!. VALUATIOl'l FEE Pleaee note that these f igurcs are subject to change vith 4ny chanse in actuarial data. Au~st 14, 1973 S&fetx Membe1·s Present Rate QPtional Benefit 2i at 50 3 Years Yes No No 22.94Tt 0.069 o.ooo --.. 23.016 0.427'l. 23.443,. $148 KISUK YANG CHIEF' ACTUARY 2't at 50 . 3 Years Yes No Yes 22. 947'%. 0.069 o.ooo 0.338 23.354% 23. 7811. • . . ' . • .. .. ~.<\. "' ,• . "" c'.'.~;· ·'J // ~ .· -:'"\. AMENDMENT TO CONTRAct BETWEEN THE ·~ ..... -~'.:~~l" BOARD OF ADMINISTRATiml \:' ·. ·>f\_ PUBLIC EMPLOYEF.S' RETIREMENT SYSTEM \.~: ~· .t> ~ AND THE c, •. -_; ·.,.-./'·I'~ ~. "!~ I''.<;> V"_,,·~,,.,,- CITY COUNCIL Ol 'I'H.E ~· ~;',;~ 1:<_.::...: ... -t:: ~.... , .. ~, ,., .,.*'. CITY OF PALO ALTO ,;;~~=:~}(> (;· -.;·' /j ~ . -> The Board of Admi..-i.istrationt Public Employees' Retirement System, ~r'efn­ after referre". to as 11Board11 , a1d the governing body of above public agency, hereinafter referred to as "Public Agency", having entered into a contract under date of }larch 9, 1942, effective January 1, 1942, and as amended effective .January 1 t 1948 t April 1, 19.49, January 1, 1952, July 1, 1954, · l•bruai:y 1, 1956. November 1, 1964, Septembe~ 23, 1968, December 14, 1970, Febrwiry l, 1974, July 8, 1974, January 5, 1975, April 1., 1975, Septelllber 11.., 1977, which provides for participation of Public Agency in said Syste:n, Board and Public Agency hereby agree as folloWs: A. Paragraphs 1 through 9 are hereby stricken from said contract as executed effective January 5, 19.75 • and hereby replac:ed by the following paragraphs number 1 through lOinclusive: 1• All words and terms \ised herein which are defined in the Public lllployees' Retirement Law shall have t:he meaning as defined therein ucleas othervise specifically provided. "Normal retirement age" shall mean age 60 for miscellaneous members and age 50 for local safety membersc 2. Public Agency shall participate in the Public Employees' Retirement System from and after January 1:11 1942, ma.king its employees.as bere.inaf ter provided, members of said System subject to all provisions of the Jbblic Employees' Retirement Lav except such as apply ouly on elec:tion 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 011 the election of contractillg qmcies. 3. Employees of Public Agency in the f ollawing classes shall beeome -..bers of said·Ret:irement System except such in each such class as ~ excluded by law or this agreement: a. Local Firemen (herein ref en:ed to as local safety members); b. Local Policemen (herein referred to as local safety MllDe.r.)..; c:. Employees other than local safety members (herein ref erred to as aiacelianeous members). ID addition to che classes of employees excluded from. membership by said Retirement Lav, th~ following classes of employees shall not 'become Jmlbers of said Retirement Syatea: EJ:a.UDE PERSONS COMPENSATED ON AN HOURLY BASIS HIRED OH OK. AFTER NOVEMBER 1., 1964. COH-702-1 . . 4. The fractio~ final compensation to be pro.ed for eacn yeai: ot credited prior and current service as a miscellaneous member shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60). . S. 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 Se~tion 21252.0l of said Retirement Law (2% at age 50). 6. · The following additional provisions of the Public Employees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: •• b. c. d. e. Sect!ons 21380-21388 (providing for allowances for survivors of mcnbers covered under the 1959 Survivor's Program upon the member's death before retirement). - Section 21222.l (providing a five-percent increase in allowance to which the annual cost-of-living provisiocs apply, payable for time commencing on the first day of the calendar month coinciding with or next fol.lowing the effective date of the aendment to add this section to this contract,· to or on account of members retired or deceased on or prior to December 31, 1970). Section .ll222.2 (provicling a five-percent ~rease in allowances to which the annual cost-of-livic.g provisions apply, payable for tiae commencing on the first day of the calendar month coinciding with or next following the effective date of the amendJlent to add this section to this contract. to-or cm account of members retired or deceased on or after January i. 1971 but before Jaly i. 1971). Section 21222.6 (providing a fifteen-percent mcre:a.se in allowances to which the annual cost-of-living provisious apply, payable for time com.mencing on the first day of the calendar a:ontb coinciding with or nexc following the effective cl.at• of the amendment to add this section to this contract, to or on account of certain miscellaneous members retired or deceased p~r to July l, 1971). Section 21222.85 (providing increases ranging from 3% to 15%. depending on date of retirement. or death, in allowances to which the annual cost-of-living provisions apply, payable for time commencing on the first day of the calendar mouth coinciding with or next following the effective date of the anaendment to a4d this section to th.ts contract, co or on account of members retired· or deceased on or prior to Dec:embe~ 311 1973)9 for local safety mmbers. 7. Public }gency 1 in accordance vith Section 20740~ Covemment Code. ceased to be an "employer" for purposes of Chapter 6 of tbe Public Ellployees* Retiremeut Law effective on Septembei-11,, 1977. . Accumulated contributions of Public Agency as of the aforemeatiaa.ed elate shall be fixed and determined as provided in Section 20759, Coverr.ment Code, and accumulated contributions aa of tbe afore- ·sentioned date and contxibutions thereafter made shall be held by tM Board aa provide~ in Section 20759, Government Code. COR-702-2 ' [ . I I I • • • 8. Public Ageneshall contribute to said Reti~t System as follows: a. With respect·to miscellaneous members. the agency shall contribute the f ollcr.ri.ng percentages of monthly salaries earned as miscellaneous members of said Retirement System: (1) 0.242 percent until June 30, 2000 on account of the liability .for prior service benefits. (2) 11.048 percent on account of the liability for current aervi.ce benefits. (3) 0.148 percent on 3ccowit of the liab~lity for the 1959 Survivor ·Program. b. With respect to local safety Mmbera. the agency shall contribute the following percentages of monthly salaries earned as local safety membera of said Retirement System: (1) 0.427 percent until June 30, 1981 on account of the liability for prior service benefits • • (2) 23.354 percent on acci:>imt of the liability for current aeTVice benefits. 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 valuatiom• or of the periodical investigation and valuations required by Lw. d. A reasonable amount as fixed by the Board. payable in one iuatallment as the occasions arise, to cover the costs of apecial valuations on account of employees of Public Agency, 8l1d costs of the periodical investigation and valuations required by law. 9• Contrihutians required of Public Agency and its employees shall be subject to adjustment by Board on account of al!:endments to the Public :Employees' Retirement Law, and on account of the eiperience under the Retirement System as determined by the periodical ilwutigation and valuation required by said Retirement Law. . . 10. Contributions required of Public Agency and its eiuployees shall be paid by Public Agency to the Reti-,:ement System within thirty daya after the end of the period to which said contributi~ns refer or as may be prescribed by Board regulation. If more 01:' leas than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with auhaequent remittances, or adjustments on acco1mt of erTO""n in c~ntributions required of any employee may be mad~ by direct cash payments between the employee and the Board. Payments by Public Agency to Board may be inade in the f ol:TA of vanants1 bank checks, bank crafts, certified checks. money orders. or ca.sh. 1. Th:ls amendment shall be attached to said contract and shall be effective on the day of , 19 __ _ CON-702-3 ,. • . " Vitnea• our bandtt thi• a1 of • 19 -------------------------_____ ._.._ ____ .._r ~---• BOARI> OF ADMINISTRATION PUBLIC &'tPLOYEES' RETIREMENT SYSTEU Approved as to form: Legal Off ice, PERS ; CITY COUNCIL OF THE CITY OF PALO ALTO It '!!:!""'--~.,.......__,.~--~----------~ Presiding Officer cm-102-4