Ordinance - 968ORDINANCE NO. 968
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
• WEST COVINA AUTHORIZING A CONTRACT BETWEEN THE
CITY COUNCIL OF THE CITY OF WEST COVINA AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA STATE
EMPLOYEES' RETIREMENT SYSTEM.
The City Council of the City of West Covina does ordain
as follows:
SECTION 1. That a Contract between the City Council of
the City of West Covina and the Board of Administration, California
State Employees' Retirement System is hereby authorized, a copy of
said Contract being attached hereto, marked "Exhibit A", and by
such reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the City of West Covina is hereby
authorized, empowered, and directed to execute said Contract for and
on behalf of said Agency.
SECTION 3. This Ordinance shall take effect 30 days after
the date of its adoption, and prior to the expiration of 15 days
from the passage thereof shall be published at least once in the
West Covina Tribune, a newspaper of general circulation, published
and circulated in the City of West Covina and thenceforth and there-
after the same shall be in full force and effect.
Adopted and approved this 23rd / day of May, 1966.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS.
CITY OF WEST COVINA
I, ROBERT FLOTTEN, City Clerk of the City991 West Covina,
do hereby certify that the foregoing Ordinance No. as regularly
introduced and placed upon its first reading at a regular meeting
of .,the City Council on the 9th day of May , 1966. That,
thereafter, said ordinance was c-u y adopted and passed -at a regular
meeting of the City Council on the 23rd day Of May ,
1966, by the following vote, to wit:
AYES: Councilmen: Gillum, Nichols, Snyder, Mayor: Krieger
NOES: Councilmen: None
ABSENT'. Councilmen: Gleckman
City Clerk
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CONTRACT
BETWEEN THE
STATE EMPLOYEES' RETIREMENT'SYSTEM
AND THE
CITY COUNCIL OF
THE CITY OF WEST COVINA
In consideration of the covenants and agreement hereafter contained and on the
part of both parties to be kept and performed, the City Council of the City of West
Covina, hereafter referred to as "public agency", and the Board of Administration,
State Employees' Retirement System, hereafter referred to as "Board", hereby agree
as follows:
1. All words and terms used herein which are defined in the State 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. "Local
System" shall mean Group Annuity Contract No. 6378-N issued by
Occidental Life Insurance Company to the City of West Covina on July 1,
1959, including all amendments thereto.
2. Public Agency shall participate in the State Employees' Retirement System
from and after July 1, 1966, making its employees as hereinafter provided,
members of said System subject to all provisions of the State 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 provision 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) .
The following employees shall be excluded from membership in said
Retirement System:
Elected officials;
Employees compensated on an hourly basis;
Employees and former employees retaining rights or receiving
benefits on account of retirement for service under the local
system as of contract date.
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4. Benefits being received under the local system on contract date by persons
retired for disability shall be continued by the State Employees' Retirement
System at the rate provided in the local system in accordance with Section
20520 of the said Retirement Law, said rate being constituted as follows:
a. A monthly lifetime allowance in the amount of one-half of the
retired person's basic salary at the date of disability retire-
ment reduced by the workmen's compensation payment in each
month during the retired person's entitlement to such payment.
b. A death benefit payable upon death of the retired person, which is
hereby, fixed and determined in the amount of $400.00.
5. Assets heretofore accumulated in the local system shall be transferred to the
State Employees' Retirement System and applied against the liability for prior
service incurred hereunder. That portion of the assets so transferred which
represents the accumulated contributions (plus interest thereon) of employees
under said local system shall be transferred to the State Employees' Retire-
ment System within 90 days after the effective date of this contract and
credited to the individual membership account of each such employee under
the State Employees' Retirement System and administered there under Section
20523 of the Retirement Law. The balance of local system assets shall be
transferred from the insurer of the local system, the Occidental Life Insurance
Company of California, at a rate of not less than $8, 333.00 per month com-
mencing 30 days following the effective date of this contract until the entire
balance of such assets (including interest compounded at 3% per annum on
balances remaining to be transferred) has been fully transferred.
6. The fraction of final compensation to be provided for each year of credited
service as a miscellaneous member upon retirement at normal retirement age
shall be 1/60 and shall be applied as provided in Section 21251.1 of said
Retirement Law and reduced to 1/90 for members covered under Federal Social
Security in accordance with Section 21251.14 of said Retirement Law.
7. The fraction of final compensation to be provided for each year of credited
service as a local safety member shall be determined in accordance with
Section 21252.4 and shall be reduced for members covered under Federal
Social Security in accordance with Section 21252.45 of said Retirement Law.
8. Benefits on account of prior service shall be 100% of the fraction of final
compensation specified for miscellaneous members in Paragraph 6 above,
but computed in accordance with Section 21253 of said Retirement Law, and
for local safety members shall be 100% of the fraction established in
accordance with Paragraph 7; provided, however, as to both miscellaneous
and local safety members that said fraction shall be reduced by one-third
for. application to the first $400.00 per month of final compensation of any
member whose position is covered by Federal Social Security for all prior
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Ret. Form 126-2
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service of such member, whether or not the service is included in Federal
Social Security.
9. 'The retirement benefits payable upon retirement for ordinary disability shall
not be affected by the modification provided in Paragraph 6 of this contract
except that for the purposes of the limit on any such allowance imposed
under Section 21297, Government Code, allowances for retirement for service
shall be computed according to the modified formula set out in Paragraph 6 of
the contract. All other provisions of this contract shall be fully applicable
to the computation of allowances upon retirement for disability.
10. Contributions for miscellaneous and local safety members shall be subject
to Sections 20601.5 and 20612 of said Retirement Law respectively, said
sections providing for a reduction in rates of contributions as such rates
relate to the first $400.00 of monthly compensation and 100% of such rates
as they apply to the remainder of the monthly compensation. Members whose "
positions are excluded from Social Security coverage shall contribute in
accordance with Sections 20601 and 20607.5 of said Retirement Law.
11. The following additional provisions of the State Employees' Retirement Law
applying only upon election of a contracting agency shall apply to the public
agency and its employees:
a. Section 20024.01 (defining "final compensation" on the basis of a period
of three consecutive years) .
b. Section 21258 (b)(providing a minimum retirement allowance of $720.00
per year under certain conditions) .
c. Section 21367.51 (providing a $400.00 death benefit upon death after
. retirement) .
d. Section 20025 (providing for inclusion of compensation without limit in
computations where compensation is a factor) .
e. Section 21365.5 (providing a monthly allowance in lieu of the basic
death benefit for certain survivors of a member who dies in employment
after qualifying for voluntary service retirement) .
f. Section 20605.5 (providing that the normal rate of contribution for those
employees who were members of the Local Retirement System shall be
based on age at entry into said local system) .
g. Section 21361.5 (providing that years of service rendered as a member
of the Local Retirement System prior to the effective date of this contract
shall be included in the computation of the basic death benefit provided
in Section 21361 upon the death of any member who was also a member
of said local system) . !
Ret. Form 126-3
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12 . Public Agency shall contribute to said Retirement System as follows:
a. 2.371 percent of total salaries reported for members in each pay-
roll reporting period until June 30, 1996 on account of the
liability for prior service benefits less an adjustment to be made
July 1, 1967 and each July 1 thereafter equal to 0.286% of total
salaries paid to members for each $100,000 of assets transferred
to the State Employees' Retirement System to the extent such
transferred assets exceed the accumulated local system contribu-
tions of members transferred under Paragraph 4.
b. 5.247 percent of total salaries reported by Public Agency each
payroll reporting period for its employees who are and hereafter
become members of said Retirement System on account of the
liability for current service benefits, provided that only salary
earned as members of said System shall be included in said
total salaries.
C. 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 of the periodical investigation and valuation required by law,
provided that said amount shall be determined on the basis of
the number of employees of Public Agency who are reported as
members on the payroll covering January 1 of each year, or with
respect to the first year of participation, on the effective date
of said participation.
d. A reasonable amount as fixed by the Board, payable in one
installment as the occasions arise, to cover costs of special
valuations on account of employees of Public Agency, and
costs of the periodical investigation and valuation required by
law.
13. Contributions required of Public Agency and its employees shall be subject
to adjustment by Board on account of amendments to the State 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.
14. Contributions required of Public Agency and its employees shall be paid,
. by public agency to the Retirement System within thirty days after the
Ret. Form 126-4
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1 end of the period to which .said contributions refer. If more or less than
the correct amount of contributions is paid for any period, proper adjust-
ment 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 Board. Payments by Public Agency to Board may be made in the
form of war -rants, bank checks, bank drafts, certified checks, money
i orders, or cash.
I.
Witness our hands this day of
j
BOARD OF ADMINISTRATION CITY COUNCIL
STATE EMPLOYEES' RETIREMENT SYSTEM OF THE
j CITY OF WEST COVINA
,I
By _.._
William E. Payne, Executive Officer
By
Presiding Officer
Attest:
Clerk