Ordinance 2006-09ORDINANCE NO. 2006 -9
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY
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, California 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.
This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration
of 15 days from the passage thereof shall be published at least once in the Gilroy 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.
ADOPTED AND APPROVED this 1 st day of May, 2006 by the following vote:
AYES: COUNCILMEMBERS: ARELLANO, BRACCO, CORREA, GARTMAN,
VALIQUETTE, VELASCO, and PINHEIRO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
ert Pinheiro, Mayor
ATTI
Rhonda Pellin, City Clerk
ORDINANCE NO. 2006 -9 -1-
Ca1PERS
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
EEEENNM� 4011110.
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, May 6, 1999 and July 14,
2002 which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective July 14, 2002, and hereby replaced by the following paragraphs
numbered 1 through 15 inclusive:
1. 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.
r,SE.DONOTSIGN "EXHIBT.� ,L`�;'.
2. 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.
3. 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);
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. 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.
5. 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.
6. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment before and not on or after the effective date of this
amendment to contract 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).
LEASE DO NOT SIGN "EAHIB11 GNL *� `
7. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment on or after the effective date of this amendment to contract
shall be determined in accordance with Section 21354.4 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 (2.5% at age 55 Full
and Modified).
8. 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).
9. 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 accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
10. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
b. 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).
f. Section 20903 (Two Years Additional Service Credit).
g. Section 21024 (Military Service Credit as Public Service).
h. 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).
PLEASE DO NOT SIGN "Ek' v�'d d .
11. 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.
12. 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.
13. Public Agency shall also contribute to said Retirement System as follows:
a. 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
single account, based on term insurance rates, for survivors of all
local miscellaenous members.
b. 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.
C. 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.
d. 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.
14. 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.
15. 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 etive on the
BOARD OF ADMINISTRATIO
PUBLIC EMPLOYEES' RETI�ENT SYSTEM
BY r
LORI MCGARTLAND, QhtF
EMPLOYER SERVIC �bIVISION
PUBLIC EMPLOYEE�')RETIREMENT SYSTEM
AMENDMENT ER# 0733
PERS- CON -702A (Rev. 10105)
day of
CITY COUNCIL
CITY OF GILROY.a
BY
PRESIDING OFFI�
Witness D,�t:
Attest: r �,
Clerk
1, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Ordinance No. 2006 -09 is an original ordinance, or a true and correct copy of a city ordinance,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
1 st day of May, 2006, at which meeting a quorum was present, and has been published or posted
pursuant to law.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 3rd day of May, 2006.
City Clerk of the City of Gilroy
(Seal)