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HomeMy WebLinkAboutCC RESO 11,258RESOLUTION NO. 11,258 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 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 them- selves and their employees to amendments to said law; and WHEREAS, one of the steps required 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 changes proposed in said contract; and WHEREAS, the following is a summary of the major provisions of the proposed changes: 1. A monthly allowance shall be paid to certain survivors of a member who dies before retirement. 2. Provides, upon the death of a miscellaneous and/or safety member who has retired for service or dis- ability, for the continuation of one-half the retirement allowance to certain survivors. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF NATIONAL CITY gives, and it does hereby give, notice of intention to approve an amendment to contract between said CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment and a summary of the major pro- visions of the 1959 Survivor program being attached hereto, marked Exhibit "A" and "B" and by this reference made a part hereof. PASSED AND ADOPTED this 18th day f ece , 1973. ATTEST: CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is,a tree and correct copy of a Resolution adopted by the CI^? C^U CTh (Governing Body) of the CITY.OF NATIONAL CITY (Name of Public Agency) on hecPmber 18, 1n72 , appearing at Page 267-8 (Date) Volume 51 of the (Minutes) ( •f&ei-�1--Reoer4) of the CITY C'777CIT, (Governing Body) CITY CLERK f x a 3 -off - -r4 PERS-ACT-12 (11/71) EXHIBIT A AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NATIONAL CITY The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF NATIONAL CITY, hereinafter referred to as Public Agency having entered into a contract under date of May 1, 1948, effective July 1, 1948, and as amended effective March 1, 1954, July 1, 1954, April 1, 1956, April 1, 1970, December 1, 1972, September 28, 1973, and October 1, 1973, and as provided by Chapters 170 and 316, Statutes of 1971, which provide for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 9 are hereby stricken from said contract as executed effective July 1, 1948, and are hereby replaced by the following paragraphs numbered 1 through 8 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 other- wise 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 July 1, 1948, ill ing its employees as herein- after 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 mem- bers 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). The following employees shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS 4. The fraction of final compensation to be provi .ed for each year of credited prior and current service as a miscellaneous member shall be that provided in Section 21251.13 of said Retirement Law. Bet. Form 702-1 5. The following additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. The fraction of final compensation to be provided for each year of credited prior and current service as a local safety member shall be that provided in Section 21252.1 of the Retirement Law. "Local Policemen" shall include persons assigned to identifica- tion and communication duties in the Police Department who are not now local safety members and who were in such employment on August 4, 1972, who elect safety membership on or before September 28, 1973. e. Section 21263 (providing upon death of a miscellaneous and/or local safety member who retired for service or disability for the continnsr ce of one-half the retirement allowance to certain survivors). d. Section 21380-7 (providing for allowances for survivors of mem- bers covered under the program upon death before retirement). Section 21222.1 (providing for increases in allowances to which the annual cost-of-livirg provisions apply, payable for time commencing on the first day of the calendar month coinciding with or next following the effective date of this amendment to or on account of persons retired or members deceased on or prior to December 31, 1970). 6. Public Agency Ghiil contribute to said Retirement System as follows: a. With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 1.03 percent until June 30, 1980 on account of the liability for prior service benefits. (2) 10.07 percent on account of the liability for current service benefits. e. (3) 1.00 percent on account of the liability for the 1959 Survivors program. (4) 0.17 percent until September 30, 1983 on account of the bene- fits provided by Section 21222.1 of the Government Code. b. With respect to local safety members, the public agency shall con- tribute the following percentages of monthly salaries earned as local safety members of said System: (1) 4.992 percent until June 30, 1976 on account of the liability for prior service benefits. (2) 12.043 percent on account of the liability for current service benefits. Ret. Form 702-2 c. 0.5 percent on account of the liability for the 1959 Survivors program. 0.23 percent until September 30, 1983 on account of the bene- fits provided by Section 21222.1 of the Government Code. A reasonable amount per annum, as fixed by 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 the period- ical investigation and valuation required by law. d. A reasonable. amount as fixed by the Board, payable in one install- ment as the occasions arise, to cover costs of special valuations on account of employees of Public Agency, and costs of the period- ical investigation and valuation required by law. 7. Contributions required by Public Agency and its employees shall be sub- ject 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. 8. 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. If more or less then the correct amount of contributions is paid for any period, proper adjustment shR1l 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 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. (3) (4) B. This amendment shall be attached to said contract and shall be effective on the day of Witness our hands this day of BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF TITh CITY OF NATIONAL CITY BY BY William E. Payne, Executive Officer Presiding Offic Attest: Clerk Ret. Form 702-3 1.0 EXHIBIT B Benefits to Employees Under PERS SURVIVOR BENEFITS (Benefits provided by Sections 21380-21387 of the Retirement Law) BENEFITS Survivors of members who elect coverage under the PERS whose death occurs before retirement will receive a monthly Widow and two or more dependent children or Three or more dependent children, alone Widow and one dependent child or Two dependent children, alone Widow, alone, age 62 (widower age 65) or One dependent child, alone If there is no widow or dependent child, then to each dependent parent (mother 62, father 65) Conditions: survivor program and life income as follows: $430 $360 $180 $180 1. A dependent child is one under the age of 18 and unmarried, or a disabled child of any age who has been continuously disabled since age 18. (For purposes of the 1959 Survivor allowance, a person shall be considered under the age of 18 if he is an unmarried, full-time student between the ages of 18 and 22.) 2. A widow ceases to be eligible for a benefit upon her remarriage. 3. A widower will be eligible for a benefit the same as a widow provided he was dependent upon the deceased member for at least one-half of his support. 4. A widow (or widower) must be married to member prior to the occurrence of the injury or onset of the illness which resulted in death. 5. The basic death benefit currently included in your retirement program pro- vides that should a member die prior to his retirement, his beneficiary would be paid the member's accumulated contributions plus an additional amount equal to one-month's salary for each year of service, up to a max- imum of six months. The above survivor benefits will be payable in addition to any basic death benefit the survivor may be entitled to receive. 6. If a member is covered under both the PERS 1959 Survivor Benefit described above and the survivor benefits as provided in Section 21363.5 (1957 Survivors Benefit) of the Retirement Law, the survivor will be paid both benefits. 7. Section 21383 - If survivor is entitled to special death benefit and at the same time is entitled to receive a survivor allowance, the survivor allowance payable in any month shall be reduced by the amount of the special death benefit allowance. COST TO THE EMPLOYEE Each employee will contribute $2.00 a month in addition to his normal retire- ment contributions. He will continue to pay this additional amount until either termination of employment or retirement and under no circumstances will these contributions be refundable. EFFECTIVE DATE These survivor benefits will become effective on (Date). All present members of the System will be given the opportunity by written ballot to select this survivor coverage. Persons who choose coverage will remain covered until they terminate their employment or retire. For agencies not covered under Social Security all future employees would be mandatorily covered under this program. For agencies who are covered under Social Security all future employees are mandatorily covered under Social Security and, therefore, are not eligible for the PERS survivor benefits. EXAMPLE Under the PERS survivor program, if a member passes away before retirement leaving a widow and four children, the widow would receive a monthly income of $430 until such time as the -three oldest children have passes age 18 (so that she now only has one child under the age of 18) at which time her benefit would be reduced to $360. The $360 would continue to be paid until the last child passes the age of 18 at which time the payment would cease until the widow reaches the age of 62. She would then receive $180 a month for the remainder of her lifetime. The widow ceases to be eligible for her benefit when she remarries although benefits would continue to any remaining children under the age of 18. For purposes of the 1959 Survivor allowance, a person shall be considered under the age of 18 if he is an unmarried, full-time student between the ages of 18 and 22. PERS-ACT-DO-1 (1/72)