Ordinance 1986-10ORDINANCE NO. 86 - 10
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING
AN A~ND~NT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF GILROY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
E~LOYEES' 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,
California 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 thereof 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 an on behalf
of said Agency.
Section 3. This ordinance shall take effect 30 days after
the date of its adoption, and at least three (3) days prior to its
adoption was published by title and summary in The Gilroy-~organ Hill
Dispatch, a newspaper of general circulation, published and circula-
ted in the City of Gilroy in accord with Section 607 of the Gilroy
City Charter, and shall take effect and be in full force thirty (30)
days from and after its passage and approval.
PASSED AND ADOPTED this 4th day of August, 1986, by the fol-
lowing vote:
AYES:
NOES:
COUNCIL~ERS: ALBERT, GAGE, KLOECKER, MUSSALLEM,
VALDEZ and HUGHAN.
COUNCILMEMBERS: None
ABSENT: COUNCIL~MBER: PAL~RLEE
/" City Cle~rk ~~
ORDINANCE NO. 86 - 10
Exhibit A
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF G!LROY
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above public agency, herein-
after referred to as Public Agency, having entered into a contract effective
July 1, 1968, and witnessed May 21, 1968, and as amended effective November 3,
1971, August 1, 1973, January 1, 1975, July 1, 1981 and July 1, 1982, which
provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective July 1, 1982, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
u~.les'~ otherwise specifically provided. "Normal retirement age"
shall mean age 60 for local miscellaneous members and age 50 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 those, which by express
provisions thereof, apply only on the election of a contracting agency.
Be
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 Fire Fighters (herein referred to as local safety members);
be
Local Police Officers (herein referred to as local safety
members);
Employees other than local safety members (herein referred to as
local miscellaneous members).
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e
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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; AND
PERSONS COMPENSATED ON AN HOURLY BASIS.
Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System and applied against the liability for prior service
incurred thereunder.~ That p~rtion ~f th~ assets so transferred
rEr~esen~ing tD accu~ulated contri~usions (plus interest thereof)
required of the employees under said local system has been 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 determined in accordance with Section 21251.13 of said
Retirement Law with all-service~prior to Federal Social Security
termination December 31, 1974, subject to the reduction provided by
said section (2% at age 60 Full and Modified).
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 21252.01 of said Retirement Law
(2% at age 50 Full).
~le 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:
Sections 21380 - 21387 (1959 Survivor Program) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits).
Section 21361.5 (Local System Service Credit), for local
miscellaneous members only.
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Section 21222.1 (Special 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
Section 20862.8 (Unused Sick Leave Credit), for local fire
members only.
Public Agency, in accordance with Government Code Section 20740,
ceased to be an "employer" for purposes of Section 20759 effective on
July 1, 1981. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20759, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20759.
10. Public Agency shall contribute t° said Retirement System as follows:
11.
12.
With respect to local miscellaneous members, the agency shall
contribute the following percentages of salaries earned as
members of said Retirement System:
(1) 0.094 percent until June 30, 2000 on account of the lia-
bility for prior service benefits. (Subject to annual
change.)
(2) v.384 p~rcent ::ntil June 3C 2000 =n ac cunt of the lia-
b'~lity for cu:.ent service oenefits. (Subject to annual
change.)
be
With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
(1)
1.382 percent until June 30, 1988 on account of the lia-
bility for prior service benefits. (Subject to annual
change.)
(2)
18.562 percent until June 30, 2000 on account of the lia-
bility for current service benefits. (~ubject to annual
change. )
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A reasonable amount, as fixed by the Board, payable in one in-
stallment within 60 days of date of contract 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.
de
A reasonable amount, as fixed by the Board, payable in one in-
stallment as the occasions arise, to cover the costs of special
valuations 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 ~ays
after the end of the period to ~nich 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.
Adjustments on account of errors in contributions required of any
employee may be made by direct payments between the employee and the
Board.
This amendment shall be effective on the
, 19 .
BOARD OF ADMINISTRATI~
PUBLIC EMPLOYEES' RE~EMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF GILROY
BY
SIDNEY C. ~cCAUSLAND,
EXECUT~.~OFFICER
Approved as to form: Att~~.
day of
BY
Presiding
Legal Office, Date Clerk Date
PERS-CON-702 (AMENDMENT)
(Rev. 9/85)
I, SUSANNE E. STEINFfETZ, City Clerk of the City of
Gilroy, do hereby certify that the attached Ordinance No. 86-10
is an original ordinance, duly adopted by the Council of the City
of Gilroy at a regular meeting of said Council held on the 4th
day of August , 19__86 , at which meeting a quorum was
present.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the Official Seal of the City of Gilroy, this 5th day
of August , 19 86
C.~zty~Clerk of ~'~~_~~~ the City of G 1 ~
(Seal)