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HomeMy WebLinkAbout3240_CCv0001.pdf RESOLUTION NO. 3240 RESOLUTION OF INTENTION, TO APPROVE AN AIENDIMNT TO CONTRACT BEM'IEEN THE BOARD OF AD7MNISTRATION' OF THE PUBIC EMPLOY ESS' RETIRE=MT SYSTETM AND THE CITY COUNCIL OF ME CITY OF REDLkINDS WHEWREAS, 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 �ME311-ak S, 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 re:3olu- tion giving notice of its intention to approve an amendment to said contract, which resolution shall contain a sum:m- ry of the changes pro- posed in said contract; and WHERTAM, the purpose of the proposed amendment is to change the benefits, retirement age and contributions for local safety members from those provided under and with respect to Section 21252.1 to those provided under and with respect to Section 21252.01 of the Governnent Code. WHERaM, attached is a su=-ary of the major provisions of the plan as proposed to be amended. N9N, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF REDIDNDS gives, and it does hereby give, notice of intention to approve "an amendment to contract between said CITY CO OIL and the Board of Administration of the Public 1,;mployees' Retirement System, a copy of said amendn�ent and a summary of the major provisions of the pro-posed charges being attached hereto, marked Exhibits "Aft and "B" and by this reference made a part hereof. CITY COUINC11'ri OF THE CITY OF'137-DLANDS Mayor (Title) April 6, 1976 _ (Date adopted and app7;vej3 Ret. Form 122 EXHIBIT A At=I iMTT TO CONTRACT BE74 BOARD OF A_DI,iI.II S`-RA I0N �. PITI3T,IC Z�2�,CtYES R:,;T1RE1aXSYSa.EE"I AND THE CITY Con, CIL k. x OF ' E CITY OF REDLANDS The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF =!,UID S, hereinafter referred to as Public .Agency, having entered into a contract oder date of June 1, 1945, effective July 1, 1945, as amended effective January 1, 1953, August 19 1956, March 1, 1957, JaLnuary 1, 1960, Augm st 1, 1961. Janizary 1, 1969, August 16, 1.969, May 16, 1973, April 25, 1974, and September 22, 1975, and as provided by Chapters 174 and 316, Statutes of 1971, which provide for participation of Public Agency in said System, Board and Public Agency hereby agree as follows. A. Paragraph 1 shall be stricken from said contract and the following Paragraph I shall be substituted therefor: 1. All words and tejm, used herein which are defined in the Public Employees' Rei it ement Law shall have tdhe mew.,ing as defined lex ul xl unless otherwise specifically provided. "Normal retirement age's shall mean age 60 for miscellaneous members and age 50 for local safety members. E. Sub—pa_-agraphs 5 (a) and 5 (b) shall be stricken from said contract and the following slab-paragraph 5 (a) shall be substituted therefor: 5. (a) The fraction of final compensation to be provided for each year of credited prier and current service for local safety members shall be that provided in Section 21252.01 of the Government Cade. C. Paragraph 6 �b) shall be stricken from said contract and the following Paragraph 6 b) shall be substituted therefor: Ret. Farm 702--1 6i.. (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) 0.046 percent until July 1. 1976 on account of liability for prior service benefits. (2) 27.329 percent on account of the liability for current service benefits. (3) 0.430 percent until May 31, 1983 to Provide the benefits under Section 21222.1 of the Government Code. D* This amendment shall be attached to said contract and shall become effective on the day of Witness our hands this clay of BOARD OF ADZINZISTRkTION CITY C9JNCIL =IC ELTILOYEEES I RETIRE�UMT S YSTMA OF THE CITY OF-REDLAIMS BY Carl J. Blechinger, Executive Officer Pres'di f iMr kpproved as to form: Ret. Form 702-2 EMJIBIT B Qcs;,l Safcty Me'.-.-J:,cri a 50 Retirement progral�'-L MeMership is corynMory for all employees , othnr thri civ ation affieWs , Y are ewploycd one-half time or tore encept Chosc Llike, ccntrnct. SERVICE TITIRMANT The earliest retirement age is 50; the normal retiremant age is 50 ; an6 the campulsory retirement age is 60 . A local safety Membcr Ei�y Teti! ' Lily age 50 provided he has at 1r,,ast 5 years, of t-,rvice. The monthly Mccae is datermined by age at rat iroment, years of craditud vervine, and "final compansution". The lartnr term means the avcrags monthly salary overtime) earned durin; the final 36 consccutive MontO tn'lC:P'S spC-O" fically requests anoth-er 36 consecutive tionth pc�riod. Thc- ugimodified life allowance will be "21 of final cotn?,, cnsntlon" for cFc.1h year of rafety service upon retirement at nqe 50 with incressiall percraitavos to a manimum of 2.7% at retiremcno at age 55. Service retirnmenr benefit is subject to a limiontica of 75Z of final co--pensation. A miiAlxrtum service rctiremcnt allownnce of $100 per ino-ntlh is )oL uaranteed u, compulsory retirement with credit for prior servive. DISABILITY YETTREWT Jul cinployea becoming disabled to the exnent that he is i-nca?able of plrfoyminq, his duties shall be retired for disability. His disability will be either emplaymcnt connected (industrial disability) or otherwise (noaindu-striai diszibiliq) . An employee who bccomes disabled i,:Iiile a member of this, System for ronsol's arising on of his employment, will be eligible for a life incotrlc of fifty (50A Qr- cent of his final compensation. If iris disability is such that W is also en;Uled to a disability income from Social Fecurity , the State System, benefit u-ill be recluced by the-, amount of his Social Secarity benefit. An employee becoming d1sabRd for rMsons not connected with bis ewploymn= shalli. be eligible for disability retiroment provided ho Us at least 5 years of service; such disability allowance is oqual to 1.8Z of final compensation for each year of servicel with a guarantee of 1/3 of such Mal MmPensation Ur most employecs Wo ha_v1z_: rendered at least 10 years of service. The "or&nary" disability retirencnt allavanw� shall vad2r no circunstances onceed the servico rctircmeat allowance which wouid become payable at age 60 if employment could be continued to that age. DEATU BENEFITS Death B 'WremM Basic Death Benefit Mis bencUt is a refund of the contributions plus six months ' salary provJdcd h,17, has, b�:aI4 a for six-yanrs or more. For those vlo die hefni:c, ycars of mambership , WQ benefit is one month 's Wary Or each yuar o-_ rnerlljerw31ii,p rafund of contributions . Tne Mary rcKrrcd to is that earned during Lhe yenr preen ding death. Pr_-Ur s, rvicc joos not count toward this Knefit. Industrial Death If death is Pervice-connectud jjj thn pul,:Int , i:11-:1 Industrial Accident CoTmission, a ?" :'t " 3 Cs,.._. :-'s pid 'Lo tile PPOIAIC, for life (or until remarriage) luo' cad o: the e,-: Luh benefit. However, if also eligi,,5r so 3_c� ;:orvJbcric -vor .fit:s Social Security because of the tho stte banefiL will be redUCCd ii i' the MOYM Of SUCh SOMI SeCUNLY SO Kug� as Social Security benefits are payahlc (uzually UnLil the younZwst child rcaches Is. The total, including Social socurity, yould be 502 of "finnl compensation". if death was cnuscd by enuornal violence or P 'Ysical force! th,_ tr"t-al benefit (including Social Mcaril) vould ba increancd to thn follow- ing parcentagns of "final so jon9 ; thostouliva_s and do-aa not rc-marry: Spouse with 3 or roue ceoildruu candor IS 75X Spouse UK 2 children under 18 70,1 Spouse with 1 child undcr 13 62111' 1957 Survivor raoefit EmployQcs with 5 or more years of nervice v-1ho '-_a-ve reached dic minimum Pk e for service Mireroat have furthcr e2ou'll Protaction under this RCM. Here the surviving SPOUP0 col Cloct 00 receive either the basic do t > benefit or a monthly income equal no one-half the unmDdified retirement allowance tbr.-� employee el_" -jhjc for on the date of his dcath . The montlily lants until tV�, spouse's death or remarrin, with a guarantee that the Systcm will pay as I-ruch as under the basic 6aaUi beni�fjt. . . Death After Retirement The death benefit is $500. This is in addition to any payments wh ch might be made under an optional retirement benefit chosen by the Taember at retirement. One-half Continuance provides upon the death of a local safety memnber who has retired for service, or disability, for the continuation of one-half the retirement allowance to certain survivors. TERMNATION OF EMPLOYMENT Upon termination of employment, an employee with at least 5 years of service may either Leave his contributions with the System and receive, upon attaining retirement age, the retirement benefit he has earned, or he may withdraw his contraibutions (plus interest) , thus terminating his membership in the System and receiving no retire=m-ent benefits. Except, (l) a member with less them 5 years of service shall not have the privilege of leaving his contributions with the System, but shall automatically have his contributions, plus interest, refunded upon termination of employ-zelit, and (2) a member who is transferring to employment with another agency which is covered urder the System skull not have the right of withdrawing his accumulated contributions. EMPLOYEE CONTRIBUTIONS Each mc-mber makes mo thly contributions to the System which are deducted from his salary. The rate of contribution (percentage of pay) is 9% of salary earned, exclusive of overtime, on the date this formula becomes effective. The employer also contributes toward the cost of the benefits. The amount con- tributed by the employer for current service retirement benefits will, on the average exceed the cost to the employee. In addition, the employer bears the entire cost of prior service benefits. employer AU/contribution rates are subject to revision by the Board of Administration. • I