Resolution - 5779► RESOLUTION NO. 5779
RESOLUTION OF INTENTION TO APPROVE AN
• AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
•
0
CITY COUNCIL
OF THE
CITY OF WEST COVINA
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 in the procedure to amend this contract is the
adoption by the legislative body of the public agency of a resolu-
tion 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 Sections 21263/21263.1 (Post -retirement
Survivor benefits for local Firemen members).
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 the Public Employees' Retirement System,
a copy of said amendment being attached hereto, as an "Exhibit"
and by this reference made a part hereof.
ATTEST:
City Clerk
a f
(Date/adopted and approved)
C�k
BY 2v��JZ�z
(Name)
Mayor
(Title)
Ret. Form 122
•
I HEREBY CERTIFY that the foregoing Resolution No. 5779
was duly adopted by the City Council of the City of West Covina at
a regular meeting thereof held on the Ilth day of September, 1978,
by the following vote of the Council:
AYES: Councilmen: Miller, Shearer, Browne, Chappell, Tice.
NOES: Councilmen: None
ABSENT: Councilmen: None
•
•
City Cl rk
- 2 -
AMENDMENT TO CONTRACT BETWEEN TH "!
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
• AND THE
CITY COUNCIL
OF THE
CITY OF 'WEST COVINA
i--*
The Board cif' Administration, Public Employees' Retirement System, here
after referred to as "Board", and the governing body of above public agency,
hereinafter referred to as "Public Agency", having entered into a contract
lnder date o:E May .'.6, 1966, effective July 1, 1966, and as amended
{.ffective %(ovember 1, 1968, October 1, 1970, September 16, 1977, which provides
.-or participation of Public Agency in said System, Board and Public Agency
ll'reby agYFSE' a5 follows:
A. Paragraphs 1 through 11 are hereby stricken from said contract as
executed effective September 16, 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. "Local System" shall mean Group Annuity Contract
No. 63-78-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 Public Employees' Retirement
System .from and after July 1, 1966, making its employees as
hereinafter provided, members of said System subject to all provisions
of tlae 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. 5npl.oyees of Public Agency in the following classes shall become
members oi: 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);
la, Lor..al Policemen (herein referred to as local safety members);
a:. Employees other than local safety members (herein referred to as
miscellaneous members).
In addAtion 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 EMPLOYEES COMPENSATED ON AN HOURLY BASIS.
EXCLUDE 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 Public
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 $500 death benefit payable upon death of the retired person
described above.
5. The fraction of final compensation to be provided for each year of
credited prior and current service as a miscellaneous member shall
be determined in accordance with Section 21251.13 of said Retirement
Law (2% at age 60).
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
commending prior to age 55 subject to actuarial discount).
b. Section 20605.5 (providing that the normal rate of contribution
for tt,4ose employees who were members of the Local Retirement
System shall be based on age at entry into said local system).
C. Section 21361.5 (providing that years of service rendered as a
mer.nber 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).
d. Sections 21380-21388 (providing for allowances for survivors
of members covered under the 1959 Survivor's Program upon the
member's death before retirement).
e. Section 21389 (providing that miscellaneous members not covered
by federal Social Security who did not elect to be covered by
the 1959 Survivor Benefit when Public Agency added said benefit
to its contract shall be given another opportunity to elect to
be covered under the program).
• f. 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).
for local firemen members.
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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 September 16, 1977.
Accumulated contributions of Public Agency as of the aforementioned
date shall be fixed and determined as provided in Section 20759,
Goverivnent Code, and accumulated contributions as of the afore-
vnen-boned date and contributions thereafter made shall be held by
the 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) 1.251 percent until June 30, 2000 on account of the
liability for prior,service benefits.
(2) 9.187 percent on account of the liability for current
service benefits.
(3) 0.443 percent on account of the liability for the
1959 Survivor Program.
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) 2.685 percent until June 30, 1996 on account of the
liability for prior service benefits.
(2) 14.892 percent on account of the liability for current
service benefits.
(3) 0.058 percent on account of the liability for the
1.959 Survivor Program.
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.
10. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the
Public Ehpl.oyees' 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.
CON-702-3
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 tlhis
BOARD OF ADMINISTRATION
PUBLIC; l..-TPLOYEMS ° RETIREMENT SYSTEM
BY
Carl i. B.leciainger, Executive Of
Approved as.to form:
day of
CITY COUNCIL
OF THE
CITY OF WEST COVINA
. 19
BY
Presiding Officer
Attest:
Legal Office, :HERS Clerk
0
CON-702-4