HomeMy WebLinkAboutRESO 1824t -
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R E S 0 L U T I 0 N N O. 1824 ___ .. ____ .. ___ ---
RESOLUTION OF INTENTION TO APPROVE A1'ENDME.'f.r
TO CO.NTRACT PROVIDING FOR PARTICIPATlON IN
STATE EMPLOYEES' RBTIREY.D.'T SYSTEM
125
WHEREAS, the State Employee~• Retirement Law permits
the participation of public agencies in the State Employees•
Ret1r~ment System, by the execution or a contract making th~ir
employees members of said. System, and sets forth the pro~edure
by which sa1d public agencies may elect to subject them2el'1es and
their employees to amendments to said law, prov1d1ng for a gua1"anteed
percentage of f1na1 compensation for ea.ch year or service as "Member"_.
and providing for tht; portion of compensation to be 1ncludP.d in
computations under sa1d law; and
WHEREAS, one step in said procedure is the adoptton by the
legislative body or the public agency, of a re~olut1on giving
notice of tts intention to approve an amendment to a co1Tt;ract
between sa1d governing board and the Board of Administration of
said Retirement System, providing for said part1c1pat1on, which
said resolution shall contain a summary or the major provisions
of the propos~d Retirement System; and
WHEREAS, the following is a summary of the major prov1·
aions of the propo3ed Retirement System:
1. The System 1B adm1n1etered 'by a board of eight members,
composed ot three members or the System, an official or
a bank, an official or a life insurance company, the
Dlrector or Finance, a member of the State Personnel
Board, and an official or the University of California.
2. Retirement for service is optional upon attainment or
age 55 by local firemen and local policemen, and age 60
or age 55 at the election of the PUbl1c Agency, by other
employees, and completion of twenty years of service for
the Public Agency, and is compulsory & .. age 65 ror local
firemen and local policemen • an<1 at age 70 for other
employees.
3. The monthly retirement allowance pa1able upon retirement
for service is dependent upon such factors as age, sex,
salary and years or service. For local firemen and
local policemen , retiring at age 55 in paragraph 2,
or at a higher age With 20 years of service, the monthly
allowance is approximately one-half the average monthly
salary during the rive years immediately preceding retire
ment, unless the Public Agency elects to provide prior
service benefits at lees than the full amount. For other
Agency employees, the monthly allowance, upon retirement
at age 65 1f the Agency elects 60 as the lowest optional
service retirement age, is approximately 1/70th or the
~verage monthly salary during the five years immediately
preced:tng retirement, for each year or service after the
ef·r.ectl ve date of part1c1pat1on, plus approximately
l/70th, or les~ as may be provided 1n said contract by
the Public Agency for !ts employees~ or the average
monthly salary during the three years 1mmed1ately preced
ing the effective date or part1c1pa~1on, ro~ each year ot
service prior to that date. Upon retirement at age 60,
if the agency elects 55 as the lowest optional service
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126
4.
retirement age, the fract!on is approximately l/60th
instead or l/70th.
A minimum service retirement allowanc~ of $40 per month
is guaranteed upon ret1r~ment at age 70 with credit for
service rendered prior to said etfectlve date, 1.f the
Public Agency elects age 6c as the lowest O.l)t1ona1
3erv1ce retirement age, or a minimum allowance of $6o
per month upon retirement at age 65 or over witrt twenty
years of service, or upon :rettrement at age 70 w1th
credit for prior service, 1!' the Publ.tc Agency elects
age 55 as the lowest opt.t<)nal service I'etlrement age.
5. Retirement for. d1sa.b111ty,, except in the case of local
fj remen and local pollcemen disabled .from injury arising
out of and 1n the co~rne of employment, 15 perm1.tted
only aft<~r ten years of serv1c..:.' and upon proof of 1n·
capac1 ty for the perfor·mance of duty.
C.. The mont.hly retirement allowance payabl~ upon d:!.sab111ty
ret:lrt:Jrn(mt,, descr1.bad in preceding .1.t~m 5, is dependent
upon such fac~ors as age, salary and years 01' service,
but gerieral"...y is equal to 90% of l/70th, or l/60tt as the
case may b'=, of' the average monthly salary during the
five year;;, lmmed:tately preceding retiremen~, for each
year of serv::.ce, w1.th a guarantee oi' 25% of said salary,
subject to ce~tain ~estrlctions and modifications.
7. Dlsabil1ty ret~rement of local flremt~n and local pol1.ce
men, in the event of d1sab111ty arising out of and in th~
course of employment, is perm1 tted regardl·~ss of age
and service, the monthly ret.trement allowance be1ns onf" ..
half the average monthly aalar-y during the five years
immediately prec~d1ng r·et.1rement.
8. T~e benefit payable at death before retirement, except
in the case of local firemen ana local pol:tcernen dying
from injury arl3ing out of and in the cou!'ae of ~mplc:r
ment, consists of the contr1butlons of the member ~lus
interes~J and plus l/12th of the member's annual aalary
during the year lmme11ntely preceding death .. for each
year, not exceeding s1.x years, of servlce as a member of
the System. Upon death after retirement, and at the
election of the Public Agency, a benefit of $300 is pay
a'ble.
9. The monthly allowance payable to tbe widow and children,
at the death of local firemen and local policemen arising
out of and in the course of e~ployment, is one-half the
average monthly salary during the five years lmmedia.tely
preceding death.
l:J. The benefit U]:ion separation from serv1ce by other caus~
than death or retirement, is the refund of tne member's
contributions, with interest, Members having accumulated
contributions of at least $500 upon resignation or dis
charge, may e1ect irrevocably, within ninety da.ya~ to
leave cont1'1but1ons in the Rl'.?t1rement Fund, and t:1en 1;.pon
reaching the lowe.st optional service retirem~nt age or
becoming d1sabled, to be en·citled to receive such retire
ment allowance as will be provided by their and the
Agency's contributions and their credited service, re
gardless of service rendered.
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127
11. Contr1but.1ons requ1red of local r1re1nen and local
policemen , without credit for prior service, depend
upon salary and upon age of entry 1nto the Retlrement
System, the contributions per $100 of salary varying
from $?.63 at entry age 21, to $14.35 at ~ntry age 35.
Contr!butiona of firemen and policemen having cred.1t ror
prior service depend on salar~, entry age, and amount
of prlor servlce, the amount of contr1but1ona per
$100 be1ng 16.33 i'c)r example~ at entry age 54~ with 19
years of prior eex-v1ce.
12. For other Agency employees, the cor.tribu-cions depend
upor-salary, sex ana age of entry 1nto the Retirement
Systemr_ the contributions per $100 or salary varying
fr-om $ll-.83 at age 20, to $7.45 at age 64, for men, ana
from $5.83 at age 20, to $8.50 at age 64, for women,
all based on the Public Agency's election of a6e 60 a8
the lowest optional service retirement age. If the
Public Agency elects age 55 as the lowest optional
service retirement a~e, the contributions per $100
of salary val'Y from $7 .22 at age 20, to $10.26 at age
59, for m~n, and f'l•om $8. 51 at age 20 .• to $'.' l. 51 at
age 59, for women.
13. The Agency ir. required to contribute the balance of the
funds necessary to meet the cost of the benefits pro-·
vided under t.he Retirement System for the Asency
employees. 'the Agency also is required to pay its pro
portionate share of the adm1n1stre.t1ve coots of the
System.
14. Ability of the Retirement 3ystem to pay benefits ~z safe
guarded 'by a provision author1z1ng the Board. of
Adm1n1strat1on to revise contribution$ of boti1 employees
and the Agency, in the light or experience under the
Sy3tem.
BE IT RESOLVED, that the C:l.ty Council of the City of
Palo Alto, give, and it hereby gives notice of intention to approve
an amendment to the contract bet~een said City Council and the
Board of Adminl~tratlon of the State Employees' Retirement System,
providing fnr the participation of said City of Palo Alto in said
Retirement ,~jgtem, a copy of said amendment be:!.ns attached hereto,
marked "Exhibit A", and by reference made a part hereof.
February 14, 1949
(Date Adopted and Approved).
CITY COUNCIL of
CITY OF PALO AL'I'O
~~-4--L/ By ,(~-ayor: I
By tZ/~-c' ~.(2., y erk
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1.28
''EXHIBIT A11
AM!.;NDMENT TO CONTRACT BE'r'-"EEN THE
BOARD OF ADMINISTRATION,
sT.\TE EMPLOYEES 1 RETifillif.ENT SYSTm-1
AND The ciiy Council
OF THE City of Palo Alto
The Board of J..dm1n1Htrat1on t s-~.ate Emplo::;ee3 I Retire-
ment S~st~m, and the C1ty Cou~cll of the City of Palo Alto, herein
after referred to as Aeency, ha.'11r.g e:-itorec 1n.to a contract under
date of March g, 1942~ effective January 1, 1942, which provldes
for the part1c1p•tion of said Agency in said Retirement System,
and the benefits or City Firemen and Po~::Qmen provided by said
Contract being based on the Retir~mient Law d.S that Law existed prior
to amendments adopted ln 1945 a~d 1947, sald Board of Administration
and sald City Councll hereb·r agree to amend 3a1d Contract as follows:
1.
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4.
"60" appearing in paragraph 3a. and 3b. of aaid C'tint!'act
as the minimum a6e for voluntary service retirement of
City Firemen and City Fo11cemen renp~ctively shall be
amended to read "55". ·
Paragraph 9a. of said Contract shall be amended to read:
'l'he s u.rn of $~~0, 761. 30 per annum, paya"clle in ~qual
monthly or less frequent installments as Board shall
require, for 40 years, lefis the time elapsed from the
date of participation to the effective date hereof.
The per cent stated in paragraph '.)b .. ::fr1all be amended
to read 7.835 1natead or 8.461.
Benefits, including retirement allowances, prior to the
effective date of this nmendment, shall not be affected
by this amendment.
5. This amendment shall be attached to oaid Contract and shall
be effective ns of April l, 1949.
Witness our hand this ____ day C•f ,194_.
Name o!L"'egfslatlvc--noa:y
AT'fEST:
Name-of-P'uorrc·-.Asency ----·
1&Lfti-t:_~ rerk By~¥" Pi'eSrigCer
STATE BOARD OF ADMINISTRATION
STATE EMPLOYEES' RETIREMENT SYSTEM
By -p•r-e-s-I'""d .... e-n'""'t-,-B-o_a_1-·d-o ... t._.,A ... din..-..l-n-1-s..-trat 1 on
Attest:
EXecutrve Officer
of
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