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HomeMy WebLinkAboutReso. 78-202 - Declaring its Intention to Approve an Amendment to its Contract with the Board of Administration of the Public Employees' Retirement System • 0 0 RESOLUTION NO. IR-;O� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING DECLARING ITS INTENTION TO APPROVE AN AMENDMENT TO ITS CONTRACT WITH THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES ' RETIREMENT SYSTEM. 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 legislative 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 20614 (that normal member. contribution rates shall be reduced by 1% for miscellaneous and local safety members) , and Section 21298 (non-industrial disability retirement allowances of up to 50% maximum of final com- pensation) , for local safety members , and WHEREAS, it has been determined that this matter is not subject to the provisions of CEQA, NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency gives , and it does hereby give notice of intention to approve an amendment to the contract between the said governing body and the Board of Administration of thePublic Employees ' Retire- ment System, a copy of said amendment being attached hereto as an "Exhibitand by this reference made a part hereof. V PO C. -1- o III 411 I HEREBY CERTIFY that the foregoing Resolution was intro- duced and read at a special meeting of the City Council of the City of Redding on the 30th day of October , 1978 , and was duly adopted at said meeting by the following vote : AYES : COUNCILMEN : Fulton, Kirkpatrick, Pugh, and Demsher NOES : COUNCILMEN : None ABSENT: COUNCILMEN : Gard a , (5,-...-s4) ATTEST: DONALD M. DEMSHER Aj ��? Mayor of the City of Redding MILDRED L. BRAYTON, ;Qity Clerk rAPPROVEEj U EARL D . MURPHY, Cit AttAsney -2- • • AMENDMENT TO CONTRACT BETWEEN THE le BOARD OP ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE �f CITY COUNCIL OF THE 440' CITY OF REDDING The Board of Administration, Public Employees' Retirement System, herein after referred to as "Board", and the governing body of above public agency, • hereinafter referred to as "Public Agency", having entered into a contract under date of December 8, 1953, effective January 1, 1954, 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, and July 1, 1977, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 11 are hereby stricken from said contract as executed effective July 1, 1977, and hereby replaced by the following paragraphs number 1 through 11 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 miscellaneous members and age 55 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after January 1, 1954, making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on • election 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 on the election of contracting agencies. 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 Firemen (herein referred to as local safety members) ; b. Local Policemen (herein referred to as local safety members); c. Employees other than local safety members (herein referred to as miscellaneous members). 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: EXCLUDE PERSONS HIRED ON OR AFTER MARCH 1, 1972 WHO ARE EMPLOYED ON A TEMPORARY BASIS IF IT IS A CONDITION OF EMPLOYMENT THAT EMPLOYMENT NOT EXCEED SIX MONTHS. CON-702-1 4. This contra hall be continuation of the acts of the Cascade • Community Se ices District and the Enterpri °'ublic Utility Dis- trict hereinafter referred to as "Former Agencies", pursuant to Section 20567.1 of the Government Code, Former Agencies having ceased to exist and been succeeded by Public Agency on June 23, 1976 and December 22, 1976 respectively. Public Agency, by this contract, assumes the accumulated contributions and assets derived there- from and liability for prior and current service under the Former Agencys' contract with respect to the Former Agencys' employees. 5. The fraction of final compensation to be provided for miscellaneous members for each year of credited prior and current service shall be that provided in Section 21251.13 subject to the reduction provided therein for service on and after January 1, 1969 of members whose service has been included in Federal Social Security. 6. 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 Section 21252.1 of said Retirement Law (One-half pay at age 55). 7. 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: a. Section 20952.5 (providing for age 50 as the minimum voluntary retirement age for local safety members, with benefit payments commencing prior to age 55 subject to actuarial discount) . b. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). c. Section 21222.1 (providing a five-percent increase in allowance to which the annual cost-of-living provisions apply, payable for time commencing on the first day of the calendar month coinciding with or next following the effective date of the amendment to add this section to this contract, to or on account of members retired or deceased on or prior to December 31, 1970) . d. Section 20930.3 (allowing public service credit under the provisions of Chapter 830, Stats. 1976, for up to four years of continuous military or merchant marine service for persons who are members in employment as of July 1, 1977 having the opportunity to elect this benefit on the previous provisions with in 90 days after July 1, 1977) . e. Section 20862.8 (providing service credit at retirement for unused sick leave) . f. Section 20024.2 (defining "final compensation" on the basis of average compensation earnable during the year immediately preceding retirement or any other one year period elected by the member). g. Sections 21263 and 21263.1 (providing upon the death of a member who retired for service or disability for continuance of a post-retirement survivor allowance to certain survivors) . CON-702-2 • b. Section 14 (providing that normal me contribution rates shall b duced by 1% for miscellaneous local safety members) . i. Section 21298 (providing increased non-industrial disability retirement allowances of up to fifty-percent of final compensation to members retiring after the effective date of the amendment), for local safety members. 8. Public Agency, in accordance with Section 20740, Government Code, • ceased to be an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law effective on December 26, 1976. Accumulated contributions of Public Agency as of the aforementioned date shall be fixed and determined as provided in Section 20759, Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held by She Board as provided in Section 20759, Government Code. 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said Retirement System: (1) 1.493 percent until June 30, 2000 on account of the liability for prior service benefits. (2) 13.651 percent on account of the liability for current service benefits. (3) 0.085 percent on account of the liability for the 1959 Survivor Program. (4) 0.170 percent until January 31, 1984 on account of the liability for the benefits provided under Section 21222 .1 of said Retirement Law. b. With respect to local safety members, the agency shall contribute the following percentages of monthly salaries earned as local safety members of said Retirement System: (1) 0.521 percent until June 30, 2000 on account of the liability for prior service benefits. (2) 15.635 percent on account of the liability for current service benefits. (3) 0.480 percent until January 31, 1984 on account of the liability for the benefits provided under Section 21222.1 of said Retirement Law. 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 valuations or of the periodical investigation and valuations required by law. d. A reasonable amount as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodical investigation and valuations required by law. CON-702-3 10. Contributions Wuired of Public Agency and ituployees 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 periodical investigation and valuation required by said Retirement Law. 11. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within thirty . days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, or .adjustments on account of errors in contributions required of any employee may be made by direct cash payments between the employee and the Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. B. This amendment shall be attached to said contract and shall be effective on the day of , 19 . Witness our hands this day of , 19 . BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE AtCITY OF BEDDING a F it‘ P4e BY T% Carl J. Blechinger, Executive Officer i . •' ing Officer 41 Approved as to form: Attest \ : Legal Office, PERS 1O_‘v.t-jt? Clerk i i CON-702-4