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Home My WebLink AboutRESO 2183I t t t i (' ) .·,,,. f-pj#ljtl>il.-.. ~ . .-,.,..-·---·•''"~··~.O••""""''-IL,...,!-•·-•o o •'f •• , ~ •• • , .. , .. ,.,. •"R•-• --·--·--·-·-·-···-... -~··"••-.-•~•' ·~• .. •<'·'"-"''""-..... ,,._. ·~-4+·-·-•"'"·"''""•••·--•~R<•-----u,._.....,..._,. _____ ,.. ____ , ___ l I - I L R ! S 0 ~_q! .! ON !LQ • 2183 RlmOLTJ'l'ION OF IM'D'!'ION TO APPROVE AMENDMENT TO CONTRACT P'RCVIDING FOR PARTICIPATION IM STATE Df.PLOY!I' S RE'l'IRKMBNT SYST~. -------- WltBR!AS, the State Employee's Retirement Law permits the participation or public agencies in the State Employees Retirement System, by the execution ot a cont~act making their employees members or said System, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to ·amendments to said law, providing tor a guaranteed ~ercentage of final compensation for each year or service a~ Member", and providing for the portion ot compensation to be included in computat1on3 under said law; and WHEREAS, one step in sa1d procedure is the adoption by the leg1elat1ve body or the public agency, of a resolution giving notice or its intention to approve an amendment to a contract between said governing hoard and the Board of Administration or said Ret1re~nt System, providing for said part1o1pat1on, which ea1d resolution shall contain a summary of the major prov1eiona of the proposed Retirement Syetem; and WHEREAS, the following 1e a summary or the major provisions of the proposed Retirement System: · l. The System 1e administered by a board or eight members, composed of three members of the System, an official of the bank, an official or a life insurance company, the Director of Finance, a member of the State Person- nel Board, and an orr101a1 or the University or California. 2. Retirement ror service 1e optional upon attainment or age 55 by local firemen and local policemen, and age 60 or age 55 at the election or the Public Agency, hy other employees, and completion or twenty years 3. or service for the Public Agency, and is compulsory at age 65 for local f1rtomen and local policemen, and at age 70 ror other employees. The ?l30nthly retirement a.llowanoe payable upon retirement tor service is dependent.upon such factors &8 age, sex, salary and I•ara or aerv1ce. Por local firemen and local policemen, ret1r:1.ng at age 55 in paragraph 2, or at a higher age with 20 years ot service, the month- ly allowance is approXimately one-half the average •onthly salary during the five years immediately preced- ing retirement, unless the Public Agency elects to pro- vide prior service benefits at less than the full amoun~. For other Agency· employee&, the monthly allowance, upon retirement-at age .65 if the Agency elects 60 as the low- est optional service retirement age, 1s approximately l/'rOth ot the average monthly salary during the five years immediately preceding ~tirement, for eaah year or aerv1oe arter the errect1ve date or part1c1pat1on, plus approximately 1/70th, or less as may be provided in said contract by the Public Agency for its employees, or "final compensation" or or the average monthly salary ' j ~ i i \ , •'r Ii . ·, •· ,, ~ ' • •--. ,,.. .-~"".:~~r:..-~~-~--.... ---··•M<•V-->•-.-....-~--.. -··~---···--· .... -..... ....,. ___ ,_...,,*,._..,,_, •• ~ ....... -"' ~·-.~~···~-~··-... --... ---....~ " t ,. t . ~ 4. 5. during ~he three years 1111Mtd1ately preoe41ng the erreotive date or participation, ror each year ot ••rv1ee prior to that date. Upon retirement at age 60, 1f the agency elects 55 as the lowest opt1onal aerv1ce ret1re .. nt ~' the fraction 10 ap-prox1maitel7 1/60th 1natead or l(TOth • A minimum service ret:1rement allowance ot ..-,o per month in guaranteed upon 1'"e1tirement at age 70 w1 th credit tor aerv1ce rendered pr1c1r to aaid etteot1ve date, it the Jublio .Agency elects age 60 a• th• lowest optional ser- vice retirement age, or a m1ni•um allowance or $60 per month upon retirement at age 65 or over with twenty years of service, or upon retirement at age 70 with credit tor prior service, it the Public .Agency elects age 55 aa the lowest optional aerv1c• ret1~ .. nt age. Ret,.rament tor d.1sab111ty,, except 1n the oaae of local r1~emen and local policemen disabled trom injurJ' aria1ng out or and in the cou.rae or employment, 1a peraitted only after ten years or service and upon proor of incapacity tor the performance of duty. 6. 'l'b.e monthly retirement ·allowance payable upon disability retirement, described in preceding item 5, 11 dependent u.pon auch factors as ag.e 1 aalaq and years 01: service.. but generally ia equal to 9°" or l/70th, or 1/50,h as the case may be, or the average monthly salary du~ing the fiv• years 1~mediately preceding retirement, tor each year ot serY1oe, with a guarantee ot 25~ ot said salary, subject to certain reetr1ct1ons and .mod1ticat1ons. 7. D1aab1lity retirement or local firemen and local police- men~ in the event or d1sab111ty arising out or and in the course of ~mployment, 1s perm1tted regard.leas of age and service, the monthly retirement allowance being one-halt the average monthly salary during the t1ve yt1ars immediate- ly preceding retirement. 8. The benefit payable at •eath before retirement, except in the case or local firemen amt local po11CJemen dying from injury arising out of and in the course or employment, consists ot the oontr1but1ona or the member plus interest, and plus l/l2th of the umber's annual salary during the year immediately p1•eoeding death, tor each year, not ex- ceeding s1x years, or service aa a member or the System. Upon death atter retirement, and at the election of the Public Agency, a benefit of $300.00 is payable. 9. The month allowance payable to the widow and children, at the death or local firemen and local policemen arising out ot and in the course or emploYtnfJnt, ia one-half the average •onthly salary during the five yeara 1mmed1ately preceding death. 10. The benefit upon separation from service by other cause than death or retirement, 1a the retund or the member's contribu- tions, with interest. Members having accumulated contribu- tions or at least $500 upon resignation or cliachar~e, may elect 1rrevocably,.w1th1n n1net7 daJS, to leave contribu- tions in the Retirement Fund, and then upon rea~h1ng the lowest optional service retirement age or becoming dis- abled, to,be entitled to receive such ret1remen\i allowance as will be provided by their and the Agencf'a contributions and the1r credited service, regardless or service rendered. ~·,, ! ) u i I l I ' I .j 1 I ' I j i l ... ' ; I . I . 21'7 11. Contributions required or local firemen and local policemen, without credit for prior service, depend upon salary and upon age of entry into the Retire- ment System, the contributions p8r $100 ot salary varying from $7.63 at entry age 21,.to $14.35 at entry age 35. Contributions or firemen and policemen hav1ni credit for prior service depend on salary, entry age, and amount or prior service, the amount or contributions per $100 being $16.33 ror example, at entry age 54, with 19 years of prior service. 12. Por other Agency employees, the contrub1t1ons depend upon salary, sex and age of entry into the Retirement System.:' the contr1butio·ns per $100 of salary var·y1ng 'fror.1 $~.62 at age 20, to $7.99.at age 64, for men, and from $5.36 at age 20,. to $9.45 at age 64, ror women, a.11 based. on the Public Agency's election of age 60 as the lowest optional service retirement age. If the Publlc Agency elects age 55 aa the lowest optional service retirement age, the contributions per .$100 or salary vary from $7.36 at age 20, to $10.88 at age 59, for men, and from.f8.35 at age 20, to.$12.81 at age 59, for women. 13. The Agency is required to contribute the balance or funds necessary to meet the cost or the benefits provided under the Retirement System for the Agency employees. The Agency also j,a required to pay its proportionate share or the administrative costs or the System. 14. Ability or the Retirement System to pay benefits is safeguarded by a provision authorizing the Board or Administration to revise contributions or both employees and the Agency, in the light of experience under the System. BE IT RESOLVED, that the Ci·ty Ct)unc1l of the City of Palo Alto, give, and it hereby g1vea notice or intention to approve an amendment to the contract between said City Council and the Board ot Administration or the State Employees' Retirement Systec, providing for the participation of said City of Palo Alto in said Retirement Systemd a copy or said amendment being attached hereto, marked "Exhibit A , and by reference made a part hereof. CITY COUNCIL or c.r~ ~-·:-. . .. ~ , .. ;or 'y~~ ty er Novemoer 1,, 1951 (Date Adopted and Approved.) ~. i I I l l -,., ,., .. , .... ~-~-•W.-••··----................... '" ........... "'•<>-·"·~••·----·--"""".""••· .. -·--"· .................... ., ....... -..... . ~·~ .. ""-·-·~ ....... -..... ___ ...,,,... f 218 i ~· ~ ~ ~ i ~ s ~ ~ ~ I f ~~ f ,, ~~. d.g; ,,. EXHIBIT "A" AMENDMENT TO CONTRACT BETVKEN THE .. BOARD OF ADMINISTRATION STATE EMPLOYEES 1. Rll'l'~ SYSTEM AND CITY COUNCIL OF THE CITY OF PALO ALTO The :Soard of Adm1n1etrat1on, State Employees' Retirement Sys- tem, and the City Council of the City or Palo Alto, here1nart~r referred to as .Agency, having entered 1r1to a cQntract under date or March 9, 1942,,. errect1ve January l, 1942, which 'Provides for the participation of 3aid Agency in said Retirement System, and said Contract being based on the Retirement Law exclusive or amendments thereto which change benefits and.ages of retirement, said Board or Adm1n1etrat1on and said City Council hereby agree as follows: 1. Paragraphs 3a, 4, 5, 6, 7, 8, 9 and 10 shall be and are hereby stricken from said Contract. 2. The following paragrapha shall be and are hereby added to said Contract: 4. Age 60 shall be the normal age for retirement for serv!Ce, of persons who are miscellaneous members because or employment by Public Agency, that is, members other than Local Firemen, Local Policemen or County Peace Officers, and one-sixtieth shall be the fraction or final compensation, as defined in aa1d Retirement Law, to be provided for each year or service as a member.upon retirement at age 60, and the provi- sions Of Section 21251.1 or said Retrrement Law, pro- viding for a guaranteed percentage of said final com- pensa t1on, shall apply. 5. Prior service benef1te to miacellaneoue members em- ployed by Public Agency, that is, members other than Local Firemen, Local Policemen,.or County Peace Off1- cers> upon retirement for service, shall be allowed only as a percentage of the average Balary specified in Section 21253 or said Retirement Law, ror each year of such service, and aa1d. percentage shall be 100 per cent or the percentage determined under said Section for the age at retirement. 6. Age ~ shall be the min-imum age 1·or ret:trement for serv ce, of persons who are members because or employ- ment by Public Agency as Local Firemen, Local Policemen or County Peace Officers and the provisions of Section 21252.4 of the State Employees' Retirement Law, prov1d- ing tor a guaranteed percentage or final compensation for each year of current service as a member, shall apply to such members. 7. Benefits on account of prior service, that is, service credited hereunder as rendered to Public Agency prior to the effective date of partic1pat1on, to respective persons who are members because of employment by Public Agency as Local Firemen, Local Policemen or County Peace Officers, ehall be alloweu only as a percentage of the average salary specified in said Retirement Law, for each year or such service, and said percentage shall be 100 per cent of the fraction or final compensation, as defined in the State Employees' Retirement Law, for e~ch year of service rendered arter said date, as deter- mined for said respective members under said law, for retirement for service at age 2,2., or upon qualification cc ~ cc c:.., . --< I -.·1 .. • t .... '} l ~ I i ·• ,~ .~ ~ _j ~ ~ l " ~ ~ 1 l ~ l ~ ~ ,, ' I i i. !$ ~ .. I ;J ·! 1 ·;i ~ i i il . I - I - I .. " .;_ ~. ""'"'---~-..... -....,, ... ~~ .. , ·~· .. ··· --·~· ., ........ ~'· . -··~ ., ·-_ .... -~ --·~ ' .. ~· ·~·~· .. -,_,_. ' ' "·-·~-.-.. ._ . ..,.,. .. __ ,_,.~,.----... ~ ~-' 219 ror service retirement at a higher age. It a member retires for service before atta1n1ng age _22, hie prior service pension shall be reduced to that a•ount which the value or the pension ae deferred to age 55 will purchase at the actual age or retirement. 8. The provisions ot Section 212S§b of the State Employee' Retirement Law, guaranteeing a minimum retirement allowance under certain conditions shall apply to persons who·are members becauae or employment by Public Agency. 9. The prov1R1onu of Section 21367.5 of the State Em- P loyees' Retirement Law, pr.•c1v1d1ng a $300 death bene- fit after retirement shall apply to persons who are members or employment by Public Agency. 10. The provisions or Section ~t2 or the State Bmployeee' Retirement Law, providing there ahall be no maxi- mum 11m1tat1on in the compensation which shall be included in ~omputat1ona under the Retirement Law, shall apply to employees or Public .Agency who become members or said Retirement System. 11. Public Agency shall contribute to said Retirement System aa follows: a. The sum or $38,387.00 per annum, or more frequent installments as Board shall require, for the period of years stated 1n said Contract, leas the time elapsed from the date of participation to the effective date hereof. b. 5.870 per cent of total salaries paid by Public Agency ea.ch month to 1 ts employees who are members or said Retirement Syntem, provided that only salary earned as ~embers of said System shall be included 1n said total salaries, and the employees who are members of said System shall include em- ployees who are members upon the effective date hereof and employees who become members thereafter. c. A reasonable amount per annum, as fixed by Board, to cover the coats of administering said System as it affects the employees or Public Agency, not including the costs of special valuations or of the periodical investigation and valuation required by law, provided that said amount shall be determined on the b&sia or the numbeJ:" or employees ot" Public Agency who are members on July lat or the respective fiscal years. d. A reasonable amount as fixed by the Board, payable in one installment from time to time as the occa- sions arise, to cover the coats or special valua- tions on account or employees or Public Agency, and the costs ot the periodical 1.nvest1p;at1on into the experience under said Ret1remen.t System, as 1 t affects aaid employees, and the valuation or the assets and 11ab111t1es of sa1d Syst~m on account or said employees. Contributions required or Public Agency and its employees shall be subject to adjustment by the Board of Adminis- tration on account of amendments to the State Employees' Retirement Law, and -on account or experience under the Retirement System~ as determined by the periodical 1nvest1gat1on, valuation and d~term1nat1on provided for by said Retirement Law. ;~' r J.' " f ·, '~· l f t " 1 " ·~tl~n,.,,.... _____ ...... ._ ...... .,. __ ,_,,_,_ft('"_h-___ .. ,_,..,,,,.~,--,M"'-•-H----.... ,..,_._.,._.., .. _.,_,._ .. .,,. . .._~....,. . ..,,.....,.,.,_., .. , .. ·~···--·· ......... ·"~'",,_..""'-~~"Miit 220 l2. Contributions required or Public Agency under the para- graph immediately preceding, and ¢ontr1but1ons required or Public .Agetncy•a emplofees who are members of said System, shall be paid by Public Agency to the State Employees' Retirement System w1tb1n thirty days after the end of the month or longer period to which said con- tributions refer. If more or less than the correct amount or contributions required of Public Agency or its em- ployees is paid for any period, prop~r adjustment shall be made 1n connection with subsequent remittances of Public Agency to the Board, to rectify the errors; or such adjust:ne11ta on account of errors made in contr1bu- t1ons required of employees~ may be made by direct cash payments between the employee in connection with whom the error waa made, and Board. Payments ot Public Agency to Board may be made in the form or warrants, bank checks, bank drafts, certified checks, money orders, or cash. 3. Benefits, including retirement allowances, prior to the ef- fective date of this amendment, shall not be affected by this amendment, unless otherwise provided herein. 4. This amendment shall be attached to sa1d Contract and shall be effective aa of January l, 1952. Witness our hands this day of , 19~ Attest: CT erk Attest: CITY COUNCIL of Name or Legfalative Body CITY OF PALO ALTO Name ot PUblic Agency By ~---.1':.r_e_a~1~a~1-n_g_o~r~r~i~c-e-r~~~ BO.ARD OF .ADMINISTRATION STATE EMPLOYEES' Rgrl:REMENT SYSTEM cc 00. tc C..., "'< .· ~I-.... J . >1' ~ ' " ,J { ~ l l ·~ ~ t'1 ~ ! I i· ·.} ' ',I A ;! ~ ' ,, ' ;~ .. ·' 1 ,~·· -{ J By -rr-r-e-si.,,..d .. e_n_,t ... ,-B ... o_a_r ... a-o·r-1 .... a ... m-11 .... n ... i .... s-tra t1on EX-ecu~Tve-WITcer i " t ·:I .1 .'/; " -~ ?. ;~ --~ ,\:;