Ordinance 1981-17 ORDINANCE NO. 81 - 17
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD
OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM.
The City Council of the City of Gilroy does ordain as follows:
Section' 1. That an amendment to the Contract between the City
Council of the City of Gilroy and the Board of Administration, Calif-
ornia Public Employees' Retirement System is hereby authorized, a
copy of said amendment 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 Council is hereby authorized,
empowered, and directed to execute said amendment for and on behalf
of said Agency.
Section 3. This Ordinance shall take effect thirty (30) days
after the date of its adoption, and published hy title~.a~d summary
at least once,three (3) days prior to its adoption in the Gilroy-
Morgan Hill Dispatch a newspaper of general circulation, published and
circulated in the City of Gilroy and thenceforth and thereafter the
same shall be in full force and effect in accord with Section 607 of
the City Charter.
vote:
PASSED AND ADOPTED this 18th day of May, 1981, by the following
AYES:
NOES:
ABSENT:
COIINCIL MEMBERS: ALBERT, HUGHAN, LINK, PATE, TAYLOP
and GOODRICH.
COUNCIL MEMBERS: None
COUNCIL MEMBERS: CUNNINGHAM
ATTE ST:
7 .... CitY Clerk
APPROVED:
Mayor
ORDINANCE NO. 81 - 17
EXHIBIT "A"
AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF CILROY
The Board of Administration, Public Employees' Retirement System, herein-
after referred to as Board, and the governing body of above public agency,
hereinafter referred to as Public Agency, having entered into a contract under
date of May 21, 1968, effective July 1, 1968, and as amended effective
November 3, 1971 , August 1 , 1973, and January 1 , 1975, which provides for
participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
Paragraphs 1 through 9 are hereby stricken from said contract as executed
effective January 1, 1975, and hereby replaced by the following paragraphs
numbered 1 through 11 inclusive:
Ail 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 local miscellaneous arid age 55 for local safety
members.
Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1968 making its employees as hereinafter
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.
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
local miscellaneous members).
In addition 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:
ELECTED OFFICIALS.
PERSONS COMPENSATED ON AN HOURLY BASIS.
Assets accumulated with respect to members in the Local Retirement
System were transferred to the Public Employees' Retirement System
within four months of contract date and applied against the liability
for prior service incurred hereunder.
That portion of the assets so transferred which represented the
accumulated contributions (plus interest thereon) required of the
employees under said local system were credited to the individual
membership account of each such employee under the Public Employees'
Retirement System.
The fraction of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member
shall be that provided in Section 21251.13 of said Retirement Law with
all service prior to Social Security termination December 31, 1974,
subject to the reduction provided by said section.
The fraction of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21252.1 of said Retirement Law
(One-half pay at age 55).
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. Section 20952.5 (Age 50 voluntary retirement) for local safety
members only.
b. Sections 21380-21387, (1959 Survivors Program).
c. Section 21361.5 (Local System Service Credit).
d. Section 21222.1 (Special 5~ increase - 1970).
e. Section 20983.6 (Waiver of age 70 retirement) for local
miscellaneous members only.
Public Agency, in accordance with Section 20740, Government Code,
shall cease to be an "employer" for purposes of Chapter 6 of the
Public Employees' Retirement Law effective as of the effective date of
this amendment to contract. Accumulated contributions of Public
Agency as of the date of such amendment shall be fixed and determined
as provided in Section 20759, Government Code, and such accumulated
contributions and contributions hereafter made shall be held by the
Board as provided in Section 20759, Government Code.
10.
11.
Public Agency shall contribute to said Retirement System as follows:
With respect to miscellaneous members, the agency shall con-
tribute the following percentages of monthly salaries earned as
miscellaneous members of said Retirement System:
(1) 4.447 percent until June 30, 1983 on account of the
liability for prior service benefits.
(2) 8.268 percent on account of the liability for current
service benefits.
(3) 0.227 percent on account of the liability for the 1959
Survivor Program.
be
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) 1.939 percent until June 30, 1988 on account of the
liability for prior service benefits.
(2) 10.561 percent on account of the liability for current
service benefits.
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 periodic investigation and valuations required by law.
A reasonable amount as fixed by the Board, payable in one install-
ment as the occasions arise, to cover the costs of special valua-
tions on account of employees of Public Agency, and costs of the
periodic investigation and valuations required by law.
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 the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
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.
This amendment shall[ be attached to said contract and shall be effective on
the 1st day of ... july , 1 9 8__]1.
Witness our hands the
day of , 19___.
BOARD OF ADMINISTRATION
PUBLTC EMPLOYEE~ RETIREME. ~ SYSTEM
CITY COUNCIL
OF THE
CITY OF GILROY
BY
Carl J. Blechinger, Executive Officer
BY /s/ NORMAN B. GOODRICH
Presiding Officer
Approved as to form:
! . f
thia G. Bese~er, Legal Office', at
Attest:
/~lerk
PERS CON-702
I, SUSANNE Eo STEIN~TZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Ordinance No° 81-17 is an
original ordinance, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the'' 18th
day of May ,, , 19 81, at which meeting a quorum was
pres ent o
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the Official Seal of the City of Gilroy, this 19th day of
. May 19 81
/Czty Clerk of the ~