HomeMy WebLinkAboutRESO 1629304
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RE.10:LUTIOX OP IIT:U'l'IOI 'ro APPROW
AMD'Dlm!IT TO COITRACT PROVIDIIO POR
PAJl'l'ICIPATIOK IK
STATE !MPLOYDS 1 Rl'l'IRDIEllT SYSTD
WllERBAS, the State Emplo7•••' R•t1riement Law peraita the
part1c1pat1on ot public agencies in the State Bllplo7eea• Retire-
.. nt Systea, b7 the exacution or a contract aald.nc their emplo7eea
membera or said Syate•, and aeta rorth the procedure by which
said public agencies may elect to 1ubJect th ... elvea and their
eaplo79e1 to uendaen·te to aa.1d law 1ncreas1ng benet1 ta and re-
ducing agea ot reti~ement; and
WHERBAS, one step in eaid procedure is the adopt1o~ by
the leg1alat1Ye body of the public agency, ot a resolution giving
notice ot 1t1 intention to approve an a.endment to a contract be-
tween aa1d governing board and the Board ot Adain1atrat1on ot
aa1d Retirement System, providing tor aaid participation, Which
said resolution shall contain a •umll&17 ot the maJor prov1a1ona or
the proposed Retirement Syatea; and
WHEREAS, the following 1a a swmD&ry ot the major prov1e1ona
of the pro~oaed Retirement System: ,
l. The System 11 ad:m1n1stered by a board or e1ght lM!lll>era,
composed or three members ot the S7atem, an ott1c1al ot a bank,
an ott1e1al ot a lite insurance coapany, the Director or Finance,
a member ot the State Personnel Board, and an ott1c1al of the
University ot California.
2. Retirement for aervice ia optional upon attainment
ot age 55 by local t1reaen and local policemen, and age 6o or
age 55 at the election of the Public Agenc7, by other eaplo7eea,
and completion ot twenty years of service to~ the Public Agenc1,
and 1s compulsory at age 65 tor local t1remen and local police-
men, and· at age 70 tor other employee&.
3. The monthl1 ret1reaent allowance pa7able upon re-
tirement tor aerv1ce ia dependent upon such tactora aa age, 1ex,
s&l&rJ" and years ot service. For local t1reaen and local police-
men, retiring at age 55 in paragraph 2, or at a hig,her age with
20 years aen1ce, the mollthl7 allowance 1a approx1u.tel7 one-halt
the averag~ monthlJ e&l&.r1' during tbe five years 1.mmed1ately pre-
ceding retirement, unleaa the Publ1a Agenc7 elects to provide
prior service benefit• at leas than the tull amount. Por other
Agency employeea, the monthly allowance, upon retireJHnt at age
65 it the Agenc7 electa 60 aa tho lowett optional service re-
t 1reaent age, 1a approxillatel7 l/70th ot the average JDOnthl7
aala17 during the five years illaediately preceding retireaent, tor
each 7ear ot aerT1ce atter the ertect1ve date or participation,
plua approX1aatel7 l/rOth, or leas aa may be provided in said con-
tract by the Public Agenc7 tor its emplo7eea, ot the average
aonthl7 aal&rJ during the three 7eare 1Blled1ately preceding the
etrect1ve t.late or part1c1pat1on, tor each 7ear or service prior
to that date. Upon ret1reunt at age 6o, it the agency elects 55 aa the lowest optional 1erv1ce retirement age, tmtract1on 1a
approximately l/6oth instead ot l/70th.
-.. A m1n1aum ael"'Vice retirement allowance of $40 per
month ia guaranteed upon retirement at age 70 with credit tor
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service rendered prior to said etteet1ve dat•, it the Public
Agency elects aao 60 .. tb9 lowest optional aerT1oe ret1reaent
age, or.a m.1n1mwa allowance of t6o per aonth upon ret1reaent at
age 65 or over with twent7 79&1'1 ot eel"t'ice, or upon ret1reaent
at age 70 with credit tor prior .. rv1ce, it th• Public .Agency
•leote age 55 aa the loweat optional aerv1ce retirement age~
5. Retirement tor d1aab111t7, except in the case ot
local tireraen and local policemen d.1eabled f'rOll inJur'J' arising
out ot and in the courae ot e.spl0Ja1nt, 1a pel'll1tted only after
ten years or service and upon proof or incapacity tor the per-
tol'llance ot duty.
6. The monthlJ retirement allowance pqable upon d1a-
abil1 t7 retirement, described in preceding itea 5, 1• dependent
upon such tacto:ra as age, eal&l7 and years ot service, but
generall7 1a equal to ~ ot inoth, or l/6oth aa th• oaae aQ"
be, ot the average monthly salary during the t1ve years 1a-
med1ately preceding retireaent, tor each ;year of sel"t'1ce, •1tn
a guarantee ot 25' ot said aal&rJ, aubJect 1Dcerta1n restrictions and mod1ticat1ons.
7. D1aabj.11 t;y retirement or local t1reMD· and local
pol1c ... n, in the event ot d1aab111ty ar1a1ng out ot and 1n the
oourae ot eaployaent, ie permitted reg&l"dleaa ot age and service,
the monthl7 retirement allowance being one-halt the average
monthly salary during the ti?e y$&rl 11111led1ately preceding re-
t1reaent.
8. The benefit payable at death betore retirement, ex-
cept in the case of local firemen and local policemen dying from
1nJury ar1aing out ot and 1n the course or enplo;yment, cone1sta
ot the c::ontr1bu.t1ons ot the member plus interest, and plus l/l2th or the aember•a annual salary during the year immediately pre-
ceding death, for each year, not exceeding aix years, or service
as a me~ber ot the system. Upon death atter retirement, and at
the election ot the Public Agency, a benet1t or $300 is payable.
9. The monthly allowance payable to the widow and child-
ren, at the death or local r1reaen and local policemen ar1e1ng
out of and in the course ot emplo)'llent, is one-half the average
monthly salaey during the t1ve yeara 1mediately preced1.ng death.
10. The benefit upon separation trom service by o·ther
cause than death or retirement, 1a the retund ot the member's
contributions1 with interest. Members having accumulated con-
tr1but1ona of at least $500 upon resignation or discharge, may
elect irrevocably, within ninety days, to leave contributions
in the Retireaent Fund, and then upon reaching the lowest op-
tional service retirement age or becoming disabled, to be
entitled to receive auch retirement allowance as will be pro-
vided by their and the Agency's contributions and their credited
service, regardless or eerv1ce rendered.
ll. Contributions required of local firemen and local
policemen, without credit for prior service, depend upon salary
and upon age or entry into the retirement eyatem, the contr1but1ona
per $100 ot salary varying fr0& $7.63 at entry age ~l to $14.35
at entry age 35. Contr1but1ona or firemen and policemen having
credit tor prior servi.ce depend on salary, entry age, and amount
ot prior service, the amount or contribution per $100 being $16.33
for example, at entry age 5~, with 19 7eara ot prior service.
12. For other Ageno7 employees, the contributions depend
upon 11alary, aex and age of entey into the retirement system, the
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contributions per $100 ot Ul&1"7 var;ri• trOllll .... 83 at age.iQ,,
to $7.45 at age 64, tor •en, and trm $5.83 at age 20, to 48.50
at age 64,, ror women, all baaed on the Public lgenc7•a election
ot ac• 6o u the lowest optional service ret1reaent age. It
the Public Agency elects age 55 ae the loweet optional service re-
tirement age,, the contribution• per $100 ot salary vary troa •1.22
at age 20, to •10.26 at age 59,, tor men,, and .rrom $8.51 at age 20,, to $11.61 at age 59, tar woaea •
. 13. The Agency 1a required to contribute the balance ot
the funds necessary to meet the coot of the benetlts provided
under the retirement system tor tho Agency employees. The Agenc7
also 1s requ~red to pay ite proportionate ahare or the adm1n1stra-t1 ve coate or the e7atem.
14. Ability ot the Retirement System to pay benet1ta ia
safeguarded by a prov1a1on authorizing the Board of Ad!l.1n1atrat1on
t~ revise eontr1but1ona ot both employees and the Agency, 1n th~
light ot experience under the ayatem.
BE IT RESOLVED, that the C1ttoCounc1l -(lame or vernlng Sod1T
or the City of Palo Alto , give~ and 1t hereby give notice
· (lrue o'f P'ii'b!Io lgency1
or intention to approve an amendment to the contract between said
Citl Council and the Board ot Administration ot (Name of "(fo"vornlng BOdy)
the State Employees' Retirement Syatem, providing tor the partici-
pation of said c1t1 or Palo Alto in said Retirement System, a (lame o'f "Puh1!c Xgenc1)
copy ot said aaendllent being attached hereto, marked "Exh1b1t A",
and by reference made a part hereor.
City ot Palo Alto
(laJ1e of Public liency)
By_ 9'...¢e:C"'4'~
~'4...e By U~-~~-•-~ ..
November 10"' 1-9!7. (Date Adopted and ApprovecIT~
AMENDMENT TO COITRlCT BETWEEN THE
BOARD OP ADMIXISTRATIOH,
STATE EMPLOYEES' RETIREMENT SYSTEM
AND CITY COUNCIL
~{ Govemlng BOdi)
OF THE CITY OP PALO ALTO (Ra.me or 1uh11c Igency)
The Board ot Ad.111.niatration,, State Employees' Retireaent
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807
S7•tea~ and the ~ Council or the C1t.z ot Palo Alto j
{Gov9nung BOdy . (lw otr Mlle Agency
hereinafter referred to am Agency, having entered into a contract
under date ot llarch ~· 19-2 , ettect1ve January l 12-2,
which :prov1dee for t e" partic1paEioii or said Agency ln sa.1~ Ri-
t1reaent System, and said contract being baaed on the Retirement
Law aa that L&w exi1ted prior to amendments adopted 1n 1945, 1n-
cre&a1ng benefits and reducing ages ot ret1re .. nt, said Board or
Adm1n1atration and said C1tz Councll hereby agree &a
!'ollowa 1 (GoveriUni"!Ody) ...
l. Paragraphs 4, 5 and 6 shall be and are hereb7 stricken trom aa1d contract.
2. The following paragraphs shall 'be and are hereby added to
said contract:
4. Age 60 shall be the normal •1n1llWI age tor retirement
tor service, or persons who are .ltiacellaneoua members
because ot emploJJBent by public agency, that is, mem-
bers other than Local P1remen and L<;cal Policemen, and
one-sixtieth sh~ll be the traction or t1na1 compensa-
tion, ae a'el'ined in aa1d Retirement Law·, to be provided.
on the average, ror each year of' aervioe as a member,
by the members• and Public Agency's normal contributions,
upon retirement at said minimum age.
5. Benefits on account or prior service, that 1s, servlce
credited hereunder as rendered to Public Agency prior
to the erreGrt1 ve date or part1c1pat1on, to respect.1 ve
persons who are members because or employment by Public
Agency as Local Firemen or Local Policemen, ehall be
allowed only aa a percentage ot the average ealary
specified 1n said Retir.eaent Law, tor each year or euch
service, and aaid percentage ehall be 100 per cent or
· the traction or final compensation, aa--ae?'ined 1n the
State Employees• Retirement Law, tor each year or
aer•iice rendered after said date, aa determined for
said respective members under said law, for retirement
tor service at Age 55, or upon qualification for
eerv1ce retirement at a higher age. If a member re-
tiree tor service before attaining age 55, his prior
service pena1o.n shall be reduced to that amount which
the value or the pension as deterred to age 55 w1ll
purchase at the actual age ot retirement.
6. Prior 3erv1ce benefits to persona who are miscellaneous
members because of employment by Public Agency, that
1a, members other than Local Firemen and Local Police-
men, upon retirement tor service at the normal minimum
age entered 1n paragraph 4 hereof, ahall be allowed
only as a percentage ot thw average salary specified
1n said Retirement Law, ror each year or auch service,
and said percentage shall be 100 per cent or l~~·
If a member retires tor serv1ce"'bitore attaining e
normal lllinimum age 1n item -, hie prior service pension
shall be reduced to that amount which the value ot the
pension as deterred to said m1n1mum age will purchase
at the actual age ot retire•nt.
7. The proviaior.1.s or Section 2):.22§b _ ot the State &n-
ployees • Retirement Law, guaranteeing a m.1n1muna retire-
ment allowance under certain conditions ah.all apply
to persons who are 111scellaneoua members oecause or
employment by Public Agency.
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808
8. ?ll• prov111ona or Section 21!6}·'-or the State :&a-
plo7•••• Ret1re11ent Law, prov d ng a $300 death benet1t
after ret1reMnt •hall appl7 to persona who are 111.•-
cellaneoua meabera because of emplo111ent b7 Public Agenc7.
9. Public Agency shall contribute to said Ret1re11ent Syatem aa tollowa:
a. The swa of $20i02f ·-8 ~er annum, payable 1n equal monthly or esa ~equent inatallmenta aa
Board shall require, tor the period ot 1eara
stated in aaid contract, lese the t1ae elapsed
from the date or participation to the errective
date h•reot.
b. 8.461 __per cent or total aalar1ee pa1d by
PU'b11c"Agenc7 •aoh month to its e11plo1eea who
are members ot said Retirement S7atem, provided
that only aalar7 earned aa aeabera or ea1d Syatem
shall be included in aa1d total salaries, and the
employeea who are aeabera ot 1a1d System ahall in-
clude employees who become aeabera upon the effec-
tive date hereof and employees who become membera
thereafter.
c. A reasonable amount per annum, ae fixed by Board,
payable in equal monthly or leaa frequent install-
ments, ae Board shall re~uire, to cover the coata
ot adm1nieter1ng eaid S7atem aa it atrects the
employeea or Public Agency, not including the coats
ot special valuations or ot the periodical 1nvea-
t1gat1on and valuation required bJ law, provided
that said amount shall be determined on the basis
ot the nwnber ot employees or Public Agency who
are members on July lat ot the respective fiscal
years, or with respect to the first year of
participation, on the ertective date or said
participation.
d. A reaaonabJ.e amount as fixed by the Board, payable
1n one 1nstallaent from time to time aa the 0tecaa1ons
arise, to cover the coata or 1pecial valuations on
account ot eaployees ot Public Agency, and the
coats ot the periodical 1nveat1gat1on into the ex-
perience under aaid Retirement Syatem, aa it ar-
teeta aa1d employees, and the valuation or the
assete and 11ab111t1ea ot said System on account
ot aaid employees.
Contributions required or Public A.lgency and its employees
shall be subject to adJuataent by the Board of Administra-tion on account ot amendments to tho State Employees• Re-
tire•ent Law', and on account ot experience under the Re-
tirement S7atea, as determined by the per1od1~al 1nveat1-
i•t1on, valuation and determination provided for by said
Retirement Law.
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10. Contributions required ot Public Agency under
paragraph 9 1Jlllled1ately preceding,, and contr1'bu-
t1one required or Public .A.genc7•1 eaployeea who
are moabera ot aa1d S7etea,, ahall be paid by
Public A.genc7 to the State Blf&ilo1•ea• Retirement
System within thirty days atter the end of the
J110nth or longer period to which aaid contr1but1ona
refer. Ir more or lees than the correct amount
or contribution r~qu1red of l~blic Agency or its
emplo7eea 1a paid ror any period, proper adJuat-
ment shall be made in connection with subsequent
rellittancea of Public Agency to the Board, to
rectify the errors; or such adjustments on account or errors m.'de in contr1but1ona required or em-
plo7eea, ma~· be made by direct cash payaents be-
tween the eaployee 1n connection with whom the
error waa made, and Board. Payaenta of Public
Agency to Board uy be made 1n the form or war-
rante, bank checks, bank drafts, cert1t1ed checks,
money ordere, or cash.
3. Benefits, including retirement allowances, prior to the
ettective date or this amendment, shall not be affected by th.1~
amendment.
4. This amendment shall be attached to said contract and
shall be effective as ot January 1, 1248.
Witness our hand this day ot , 19 . ---
of -a-am_e_o ... f'.._Le-g ..... la .... 1 ... a ... t"""I_v_e-Bo-d .... y __ _
-Name of JfiibJ:ic Agency
By
~--~--P-r_e_s .... 1-a1-ng~-o-r~r~1c_e_r~
AftEST:
BOARD OF ADMINISTRATION
STATE EMPLOYEES' RETIREMENT SYSTEM
urerr
ATTEST:
By _P_r_e-sI .... a .... e-n""'t-,-B-o-a-1'd--o-r-1-am-1-nistrallon
--···· -· ----se<freta.ry
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