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HomeMy WebLinkAboutResolution No. 6284RESOLUTION NO. 6284 A 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 AZUSA. 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 change: WHEREAS, the following is a statement of the proposed ADD: (Miscellaneous Employees) Section 21263 - Post retirement survivors benefits Section 21380 - 1959 Survivor benefits NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa, gives, and it does hereby give 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, andopy of said amendment being attached hereto, marked "Exhibit A' and by this reference made a part hereof. Approved and adopted this 18th day of February, 1975. -9),,_, L 4/ AJ -e 4-C Mayor I hereby certify that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof held on the 18th day of February, 1975, by the following vote of the Council: AYES: Councilmen: Rubio, Solem, Cruz, Arkison, Decker NOES: Councilmen: None ABSENT: Councilmen: None --c City Clerk n 0 EXHIBIT A • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF AZUSA The Board of Administration, Public Employees' Retirement System, hereinafter referred to'as Board and the CITY COUNCIL of the CITY OF AZUSA, hereinafter referred to as Public Agency, having entered into a contract under date of December 20, 1948, effective January 1, 1949, as amended effective July 1, 1956, September 1, 1958, March 2, 1959, May 1, 1960,.September 3, 1967, December 22, 1968, and July 15, 19737 and as provided by Chapters 170 and 316, Statutes of 1971, which provide for parti- cipation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 8 are hereby stricken from said contract as executed effective January 1, 1949, and are hereby replaced by the following para- graphs numbered 1 through 8 inclusive: 1. All words and terms used herein which are defined in the Public Employ- ees' 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, 19499 making its employees as here- inafter 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 provision 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 Ret. Form 702-1 �... • k 4. The fraoton of final compensation to be provided for each year of -s ciedi-ied prior and current service as a miscellaneous member shall 4s .be tH&t provided in Section 21251.13 of said Retirement haw subject > to the reduction provided therein for service on and after January 1956 of members whose service has been included in the federal service. 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 said Retirement Law. b. Section 21363 and 21363.1 (providing upon death of a miscellaneous or local safety member who has retired for service or disability for the continuation of the post-retirement survivor allowance to certain survivors). c. Section 21380-7 (providing for allowances to survivors of members covered under the program upon death before retirement). 6. Public Agency shall 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) 0.33 percent until June 30, 2000 on account of the liability for prior service benefits. (2) 9 87 percent on account of the liability for current service benefits. (3) 1.00 percent on account of the liability for the 1959 Survivors - program. b. With respect to local safety members, the public agency shall contribute the following percentages of monthly salaries earned as local safety members of said System: (1) 4.092 percent until June 30, 1978 on account of the liability for prior service benefits. (2) 9.245 percent on account of the liability for current service benefits. (3) 0.500 percent on account of the liability for the 1959 Survivors program. Ret. Form 702-2 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 the periodical 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 of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of experience under the Retirement Systems 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 than the correct amount of contribution is paid for any period, proper adjustment shall be made in connection with subsequent remittances, or adjustment on account of errors in contributions re— quired 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. B. This amendment shall be attached to said contract and shall be effective on the day of Witness our hands this BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY Carl J. Blechinger, Executive Officer day of CITY COUNCIL OF THE CITY OF AZUSA . BY Presidia g Attest: Ret. Form 702-3 ,�..Q _ )3, 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 survivor program and whose death occurs before retirement will receive a monthly life income as follows: Widow and two or more dependent children $430 or Three or more dependent children, alone Widow and one dependent child $360 or Two dependent children, alone Widow, alone, age 62 (widower age 65) $180 or One dependent child, alone If there is no widow or dependent child, then $180 to each dependent parent (mother 62, father 65) Conditions: 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 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 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 21365.5 (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 passed 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 the 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) 1. ., 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 passed 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 the 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)