Ordinance 2002-09ORDINANCE NO. 2002-9
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF G1LROY
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE
CITY COUNCIL OF THE CITY OF GILROY 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 of the Public Employees' Retirement System is hereby
authorized, a copy of said amendment being attached hereto, marked Exhibit, 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:
All ordinances and parts of ordinances in conflict herewith are hereby repealed. This
ordinance shall take effect 30 days after the date of its adoption, and prior to the passage
thereof shall be published at least once in the Gikoy Dispatch, a newspaper of general
circulation, published and circulated in the City of Gilroy and thenceforth and therea~er
the same shall be in full force and effect.
Section 4:
If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance is for
any reason held to be unconstitutional or otherwise void or invalid by any court of
competent jurisdiction, the validity of the remaining portion of this Ordinance shall not
be affected thereby.
ORDINANCE NO. 2002-9 -1-
PASSED AND ADOPTED this 13th day of June, 2002 by the following vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS: ARELLANO, DILLON, GARTMAN,
MORALES, PINHEIRO, VELASCO, SPRINGER
COUNCILMEMBERS: NONE
COUNC1LMEMBERS: NONE
ATTEST,:
Rhonda Pellin, City Clerk
APPROVED:
Thomas W. Spring~ ,~
ORDINANCE NO. 2002-9 -2-
CalPERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Gilroy
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter 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, July 1, 1982, January 1, 1987, June 2,
1988, June 1, 1990, May 1, 1991, November 19, 1992, June 24, 1993, February 3,
1994, August 17, 1994, August 17, 1995, December 1, 1996 and May 6, 1999 which
provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
Paragraphs I through 13 are hereby stricken from said contract as executed
effective May 6, 1999, and hereby replaced by the following paragraphs
numbered I through 14 inclusive:
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 55 for local miscellaneous members and age 50 for local safety
members.
Public Agency shall padicipate 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.
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);
b. Local Police Officers (herein referred to as local safety members);
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:
a. 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 portion of the assets so transferred which
represent the accumulated contributions (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 percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members shall
be determined in accordance with Section 21354 of said Retirement Law,
subject to the reduction provided therein for service prior to December 31,
1974, termination of Social Security, for members whose service has been
included in Federal Social Security (2% at age 55 Full and Modified).
10.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
The percentage of final compensation to be provided for each year of
credited prior and current service as a local fire member shall be
determined in accordance with Section 21362 of said Retirement Law (2%
at age 50 Full).
The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member shall be
determined in accordahce with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
Public Agency elected and elects to be subject to the following optional
provisions:
Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members' only.
Section 21536 (Local System Service Credit Included in Basic
Death Benefit).
c. Section 21222.1 (Special 5% Increase 1970). Legislation
repealed said Section effective January 1, 1980.
d. Section 20965 (Credit for Unused Sick Leave).
e. Section 20042 (One-Year Final Compensation).
Section 20903 (Two Years Additional Service Credit), Statutes of
1979. Legislation repealed said Section effective January 1, 1999.
Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safety members only.
Section 20431 ("Local Police Officer" shall include city jail,
detention or correctional facility employees as described in
Government Code Section 20431).
Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
July 1, 1981. Accumulated contributions of Public Agency shall be fixed
and determined as provided in Government Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
11.
12.
13.
PLEASE DO NOT SIGN "EXHiBiT ONLY"
Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
Public Agency shall also contribute to said Retirement System as follows:
Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
singte account, based on term insurance rates, for survivors of all
local miscellaneous members.
Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local safety members.
A reasonable amount, as fixed by the Board, payable in one
installment 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.
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 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.
14. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen 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. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
B. This amendment shall be effect~on the day of
BOARD OF ADMINISTRATION ,/,,,"'~ CITY COUNCIL
PUBLIC EMPLOYEES' RETIRE~T SYSTEM CITY OF GILROY
BY ~ BY
KENNETH W. MARZIONc=~J~-IIEF PRESIDING
ACTUARIAL & EMPLO,X~_I~ SERVICES DIVISION
PUBLIC EMPLOYEE-~ETIREMENT SYSTEM
~'-.= ~<<~'ttest:
Clerk
AMENDMENT
PERS-CON-702A (Rev. 8\96)
I, RHONDA PELL1N, City Clerk of the City of Gilroy, do hereby certify that the attached
Ordinance No. 2002-9 is an original ordinance, duly adopted by the Council of the City of Gilroy
at a regular meeting of said Council held on the 13th day of June, 2002, at which meeting a
quorum was present.
1N WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 18th day of June, 2002.
City Clerk of the City of Gilroy
(Seal)