HomeMy WebLinkAboutCC RESO 11,059RESOLUTION NO.. 11,059
RESOLUTION OF INTENTION TO. APPROVE. AN AMENDMENT TO.
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF NATIONAL CITY.
WHEREAS, the Public Employees' Retirement Law per-
mits the participation of public agencies and their employees
in the Public Employees' Retirement System bythe execution of
a contract, and sets forththe '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 tosaid contract, which resolution
shall contain a summary of thechanges proposed in said con-
tract; and
WHEREAS, the following is a statement of theproposed
change: "Retirement allowances 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 follow-
ing the effective date of this amendment to or on account of
persons retired or members deceased on or prior. to December 31,
1970, are hereby increased by 5%."
WHEREAS, the estimate of -the cost of such change for
the public agency is set forthin a copy of thevaluation re-
port attached hereto, marked "Exhibit A" and by this refere4ce
incorporated into the amendment as though therein set out in
full.
NOW, THEREFORE., BE. IT RESOLVED, that the City Council
of the City of National City, gives, and it hereby gives notice
of intention to approve an amendment to the 'contract between
the City Council and the Board of Administration of the Public
Employees' Retirement System to accomplish the above change.
PASSED AND ADOPTED this 15th day of Ma, 1973.
ATTEST:
MAYOR
CITY CLERK/
BY./147,
DEPUTY
LIC E..iLO'iLt:S' RETHILMEP1 SYSTEM
P. 0. Box 1953 (1416 - Street)
Sscrsmento. CA95809
TO:
ALL AGENCIES CONTRACTING WITH TEE
PUBLIC EMPLOYEES RETIREMENT SYS'IM
r,.
Date:
February 9, 1973
CIRCULAR
LETTER
NUMBER:
020-1
Distribution:
VI
subject:
SENATE BILL 135, CHAPTER 1413 (1972) 5% ALLOWANCE I?ICFEASE
Senate Bill 135, Chapter 1413, Statutes of 1972, provides that monthly allowances
paid with respect to persons retired or members deccasea on or before December 31,
1970 are ircrcaee b;; 57; for State and school meMbers with respect to whom allow-
ances cresbning paid on April 1, 1973 and to local members with respect to whom
allo..nees a -a being paid oa the effective date of the contract amendment electing
to be su,,joct to the provision. The increase is applicable to both miscellaneous
and safety members and can cpply only to payments on or after the effective date
of the contract amendment.
We aro r-iclosin5, in drplicate, a Resolution of Intention to approve an amendment
to contract to provide the 5% increase. Attached to the Resolution of intention as
"Exhibit A" is a copy of the valuation results. Your Governing body should indicate
the funding period desired and return one complete executed set to this System if
the enclosed Resolt' Lion is adopted.
Upon receipt of the executed Resolution of Intention and attached exhibit, this
Syst= ;:ill fer.rard a resolution authorizing the proposed contract amendment and
c.thc;i' documents pertin:ii;: to the amendment. Cities and counties must adopt by
ordinances which do rrot beccme effective until 30 days following the final reading.
Emergency ordinances are not acceptable for contract amendment purposes.
Effective date of the amendment must be the beginning of a payroll.period subsequent
to the above actions and whenever possible should coincide with the commencement of
the allowance -increases.
Attachment
RECEIVED
FEB X a 1973
TREASURER'S OFFICE
KISUK YANG l/
CHIEF ACTUATcY
EXHIBIT A :)
PUBLIC EMPLOYEES' RETIR.EDIENT SYSTEM
ACTUARIAL VALUATION TO DETERMINE COSTS
UNDER SB 135, CHAPTER 3./013 (1972) '
(5% Increase)
AGENCY NAME: City of National City
AGENCY NUMBER: 190
DATE: FEBRUARY 9, 1973
Indicate desired method of funding the liability for the increases with respect
to persons retired or members deceased prior to Janunry 1, 1971:
_rr ,
re-
y
c
•
MISCELLANEOUS MEMBERS 6". /' /
LUtiP SUM PAYMENT 3 YEARS 5 YEARS 10 YEARS
$ 21548 .54%- .33% .17%
5< 1/ :54-.1 y /7L,,:,
SAFETY MEMBERS
LUMP SUM PAYMENT 3 YEARS 5 YEARS 10 YE./,RS
$ 30382 .76% .46% . .23%
7X68 3<io‘)/
/n,ico
=TE I;1LL 135 (Chapter 1413-1972 57, Allcance Increase for Retired City Employees:
1,IECELIA1;EOUS 12=ERS:
City
Contribution
Rate
Current
Annual
Payroll
Annual
Contribution
Lump Sum
Payment
3 year payoff
.54%
Al;'.:UAL PAYMENTS
5-year payoff
.33%
10 year payoff
.17%
8.24% $1,334,280. $109,945.
S!FETY
City
contribution
P.ate •
Current
Annual
Payroll
14.165%
$1,328,832.
Annual
Contribution
$21,548.
Lump Sum
Payment
8.24%---$109,945.
8.787,--- 117,150.
$ 7,205.
3 year payoff
7°'•1(2)/
8.247.---$109,945.
$.577.--- 114,348.
$ 4,403.
5 year payoff
8.247.---$109,945.
8.417,--- 112,213.
$ 2,268.
10 year payoff
$188,229.
$30,382.
14.165%---$188,229.
14.925%--- 198,252.
$ 10,023.
14.165%---$188,229.
14.625%--- 194,342.
14.165%---$188,223.
14.3957.--- 191,'
•
$ 3,05E.