HomeMy WebLinkAboutReso. 1989-309 - Approve an amendment to the contract between the board of administration of the public employees retirement system I •
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RESOLUTION NO. tJ 9'-i t2/q
A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF
REDDING TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES ' RETIREMENT
SYSTEM AND THE CITY COUNCIL OF THE CITY OF REDDING.
WHEREAS, the Public Employees' Retirement Law permits the
participation of public agencies and their employees 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
amendments to said Law; and
WHEREAS , one of the steps in the procedure to amend this
contract is the adoption by the governing 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 change proposed in said contract; and
WHEREAS , the following is a statement of the proposed
change :
To provide Section 21382 .4 (Third Level of 1959 Survivor
Benefits) for local miscellaneous members.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of Redding hereby gives notice of its intention to approve
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an amendment to the contract between the City of Redding and the
Board of Administration of the Public Employees ' Retirement / �
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System, a copy of which amendment is attached hereto and
incorporated herein by reference.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 5th day of September , 1989 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Buffum, Dahl , Fulton, Johannessen, & Carter
NOES : COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS : None
X/Le- (/2;441
SCOTT CARTER, Mayor
City of Redding
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ATTEST: 4
.4 I a. X7,i4 4`e4.'&
ETHEL A. NICHOLS , City Clerk
FORMPPROVED::
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RAN ALL A. HAYS, Ci v Attorney
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��%� 00 AMENDMENT TO CONTRACT
`' BETWEEN THE
rte SPG/ BOARD OF ADMINISTRATION
OF THE
krc_III �,4 PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF REDDING
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above putlic agency,
hereinafter referred to as Public Agency, having entered into a contract
effective January 1, 1954, and witnessed December 8, 1953, and as amended
effective October 1, 1956, June 1, 1962, March 21, 1965, October 27, 1968,
January 1, 1969, December 19, 1971, February 1, 1974, December 26, 1976, July
1, 1977, November 26, 1978, April 1, 1979, July 6, 1980, July 5, 1981, January
3, 1982, March 27, 1983, June 30, 1985 and June 29, 1986, which provides for
participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective June 29, 1986, and hereby replaced by the fallowing paragraphs
numbered 1 through 13 inclusive:
1. All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age"
shall mean age 60 for local miscellaneous membe:s and age 50 for local
safety members.
2. Public Agency shall participate in the Public Enployees' Retirement
System from and after January 1, 1954 making its employees as
hereinafter provided, members of said System sutject to all provisions
of the Public Employees' Retirement Law except such as apply only on
election of a contracting agency and are not prcvided for herein and
to all amendments to said Law hereafter enacted except those, which by I
express provisions thereof, apply only on the election of a contract-
ing agency.
3. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members) ;
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b. Local Police Officers (herein referred to as local safety
members);
c. Employees other than local safety members (herein referred to as
local miscellaneous members) .
4. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not
become members of said Retirement System:
4;30 NO ADDITIONAL EXCLUSIONS
Cry 5. Prior to January 1, 1975, those members who were hired by Public
Q Agency on a temporary and/or seasonal basis not to exceed 6 months
were excluded from PERS membership by contract. Government Code
Section 20336 supersedes this contract provision by providing that any `.
such temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975.
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6. This contract shall be the continuation of the benefits of the
contracts of the Cascade Community Services District and the
Enterprise Public Utility District hereinafter referred to as "Former
Agencies", pursuant to Section 20567.1 of the Government Code. Former
Agencies having ceased to exist and being succeeded by Public Agency
on June 23, 1976 and December 22, 1976, respectively. Public Agency,
by this contract amendment dated July 1, 1977 assumes the accumulated
contributions and assets derived therefrom and liability for prior and
current service under the Former Agencies' contract with respect to
the Former Agencies' employees.
7. The fraction of final compensation to be provided for local
miscellaneous member for each year of credited prior and current
service shall be determined in accordance with Section 21251.13 of ; I
said Retirement Law subject to the reduction provided therein for
service on or after January 1, 1969 and prior to December 31, 1981 for
members whose service has been included in Federal Social Security (2%
at age 60 Modified and Full) .
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8. The fraction of final compensation to be
p provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21252.01 of said Retirement Law
(2% at age 50 Full) .
9. The following additional provisions of the Public Employees'
Retirement Law, which apply only upon election of a contracting
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agency, shall apply to the Public Agency and its employees:
a. Section 21222.2 (Special 5% Increase - 1971) . Legislation
repealed said Section effective January 1, 1980.
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,�� b. Section 20930.3 (MilitaryService Credit) . Statutes of 1974.
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c. Section 20930.3 (Military Service Credit ) . Statutes of 1976. it
ii d. Section 20862.8 (Credit for Unused Sick Lea.-.-e) . 1
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7 e. Section 20024.2 (One-Year Final Compensatic.:) . ,1
f. Sections 21263, 21263.1 and 21263.3 (Post-retirement Survivor '
O Allowance) .
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g. Section 21298 (Increased Non-Industrial Disability Allowance) for 1 .
local safety members only. i.
Nr h. Section 20614, Statutes of 1978, (Reduction. of Normal Member
Contribution Rate) . From November 26, 197E through March 31,
1979, the normal local miscellaneous and local safety member
contribution rates shall be reduced by 1%; from April 1, 1979
through July 5, 1980, the normal local miscellaneous and local
safety member contribution rates shall be reduced by 2%; from
July 6, 1980 through January 2, 1982, the normal local
miscellaneous member contribution rate shall be reduced by 3%;
1 1 and from July 6, 1980 through March 26, 1983, the normal local
safety member contribution rate shall be reduced by 3%. 1
i. Sections 21380 - 21387 (1959 Survivor Benefits) including Section ;!
21382.2 (Increased 1959 Survivor Benefits) for local safety
1 members only. I
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j. Section 20614, Statutes of 1980, (To Prospectively Revoke Section
20614, Statutes of 1978).
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1k. Sections 21380 - 21387 (1959 Survivor Benefits) including Section { '
1 21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4 1
(Third Level of 1959 Survivor Benefits) for local miscellaneous I .
members only.
10. Public Agency, in accordance with Government Code Section 20740,
ceased to be an "employer" for purposes of Section 20759 effective on
1 December 26, 1976. Accumulated contributions of Public Agency shall
be fixed and determined as provided in Government Code Section 20759,
and accumulated contributions thereafter shall to held by the Board as
provided in Government Code Section 20759.
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11. Public Agency shall contribute to said Retirement System as follows:
a. With respect to local miscellaneous members, the agency shall
contribute the following percentages of sa'_aries earned as
members of said Retirement System:
(1) 0.201 percent until June 30, 2000 on account of the
liability for prior service benefits. (Subject to annual
change. )
(2) 7.723 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change. )
b. With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
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(1) 0.497 percent until June 30, 2000 on account of the
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ji change. )
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(2) 16.030 percent until June 30, 2000 on account of the I,
I .�- liability for current service benefits. (Subject to annual
change. )
c. Public Agency shall contribute $2.50 per employee, per month on
account of the liability for the 1959 Survivor Program provided
under Section 21382.4 of said Retirement Law. (Subject to annual Hr
change. ) In addition, all assets and liabilities of Public
Agency and its employees shall be pooled in a single account,
based on term insurance rates, for beneficiaries of all local
miscellaneous members.
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d. A reasonable amount, as fixed by the Board, payable in one in-
stallment within 60 days of date of contract to cover the costs 'I
of administering said System as it affects the employees of
Public Agency, not including the costs of special valuations or
of the periodic investigation and valuations required by law.
e. A reasonable amount, as fixed by the Board, payable in one in- Ii
stallment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
12. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
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13. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within fifteen days
after the end of the period to which said contr.:utions refer or as
may be prescribed by Board regulation. If more sr less than the
correct amount of contributions is paid for any period, proper
adjustment shall be made in connection with subsequent remittances.
Adjustments on account of errors in contributions required of any
II employee may be made by direct payments between. :he employee and the
Board.
B. This amendment shall be effecti -- '.n the day of
BOARD OF ADMINISTRATION CITY COUNCIL ;
PUBLIC EMPLOYEES' RETIREME _ STEM OF THE
C3� CITY OF RED::NG A
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BY BY
CHIEF, CONTRA ERVICES DIVISION Presiding Oicer
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PUBLIC EMPL �S' RETIREMENT SYSTEM
Witne$c Date
Att :
Clerk
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PERS-CON-702 (AMENDMENT)
(Rev. 6/88) 1
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