Resolution 1981-42
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RESOLUTION NO. 81 - 42
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN
THE PUBLIC EMPLOYEESt RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE
CITY OF GILROY.
WHEREAS, the Public Employeest Retirement Law permits the parti-
cipation of public agencies and their employees in the Public Employeest
Retirement System by the execution of a contract, and sets forth the
procedure by which saidpublic agencies may elect to subject themselves
and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedure to amend this contract
is the adoption by the legislative body of the public agency of a reso-
lution giving notice of its intention to approve an amendment to said
contract, which resolution shall contain a summary of the change pro-
posed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20983.6 (Waiver of Age 70 Compulsory
Retirement) .
NOW, THEREFORE, BE IT RESOLVED, that the governing body of the
above agency gives, and it does hereby give notice of intention to ap-
prove an amendment to the contract between the said governing body and
the Board of Administration of the Public Employees' Retirement System,
a copy of said amendment being attached hereto, as an "Exhibit" and by
this reference made a part hereof.
PASSED AND ADOPTED this 20th day of April, 1981, by the following
vote:
NOES:
ABSENT:
COUNCIL MEMBERS: ALBERT, CUNNINGHAM, HUGHAN, LINK, PATE,
TAYLOR and GOODRICH.
COUNCIL MEMBERS: None
AYES:
COUNCIL MEMBERS: None
APPROVED:
ATTEST: ~~dC{~h~~
4'itd ~ t. At;:;::.. Mayor
7 City Cler~ ~
RESOLUTION NO. 81 - 42
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EXHIBIT
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ANF~NDMI:N'li ;PCJ conTRt,c'r H!:'!'vn';!:~J '[')",:
JY);\FlD OF Ar)MINT~")'II^'I';C1il
Pl)BL~C E:/I,P L()n'F:~)' Hi';':'T !!I':~~F:wr' ::y :',':'!';;~
AND r:'!m
Cl'l'Y COUNCIL
Of frHF~
CI'ry OF GTLHOY
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The Board of Administration, Public Bmployees' Retirement System, herein-
after referred to us Board, and the governing body of above public agency,
hereinafter referred to 8S Public Agency, hav.Lng entered into a contract under
date of May ;~1, 196h, effective July 1, 1968, and 1.1:) amended effective
November 3, 1971, August 1, 197:3, and January 1, 19'115, which provides for
pf"rticipation of Public Ag(:Hlcy in sllid System, Board Hnd Public Agency hereby
agree 88 follows:
A. Paragraphs 1 through 9 are hf::reby stricken frum UIJJd contruct a:1 executed
effective .]nl1uury 1, 1975, and hereby replaced by the following parHgraphs
numbered 1 thr0ul~h 1 1 inclUSIve:
1. 1\.11 words and term,) uucri hure.in which arc defined in the, Pu1;11C
F;mploye8~J' HetJrernmlt Lnw shall have the Jil01tnlng WI defined therein
unless otl'H:r'Wi.:)I~ :.\peCJ fi.cally prl)vide:d. "Norlllld retirement age" shall
mean 11ge 60 fur lor:;nl mIsee Iln.neous and .!lve 5',; ['or .l oea 1 sufety
mernbenJ.
2. Publjc Aw~ncy :3)1811 partIcipate in the Public: Employee:)' Ht,tirement
S.Y:3tem from and after July 1, 1961:J mtlking it') employees as hereinafter
provided, members of Baid System suhject to nIl provisions of the
Publi.c I<:rnployeefl' Retirement Law except. ~,:ch ni\ Ilpnly un.1y on election
of a contracting Ilg,pncy and are not providud for lleri:in IHld to all
amendments to said Law hereafter enacted except Buch DS by express
provisioWl thereof apply only on the clect10n of' contrllcti.ng agencies.
3. E:mployeeH of Public Agency in the followi.ng '~1!l~3seB t~tllill become
mernbenl of said Retirement System except ueh in each such class 8S
are excluded by law or this Ilgrf3ement:
a. Lacs] Firemen (herein referred to as local sufety members);
b. Lochl Policemen (herein referred to us lucal safety members);
c. l':rnployees othl;r than 10cHl ~lll.fet.Y rnember~; (he reln ref,~rred to as
lOCH I miscellaneous members).
Tn llddi. t ion to the classes of employet,s excIudt:,1 from membership by
said Heti l'urnent Lml, the following classen of pH:pl.oye~~s shall not
become :;;umb,'I':.3 of :3uid Heti rement :5ystern:
F: i, !:C'i'!r~ U (IF}''T C1 AL[) .
PI,: H: :(1):: cor1l' F:N ;') A'I'K]) ON AN HUUH LY EA~)l:~,
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4.
Assets accumulated with respect to member8 in the Lucal Retirement
System were trnnsferred to the Public ~mployeBs' Retirement System
w1th1n four months of contract date and applied ngainst the liability
for prior service incurred hereunder.
That portion of the assets so transferred whj,ch l't;fJl.'l:osented 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 Publlc Employees'
Retirement System.
5. The fraction of f1nal 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 reduct:lon provided by said flection.
6. 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).
7. 'The following additional provisions of the T'ubl.i c E~mplo'yees I Hdire-
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 voluntEHY ret.Lrement) for local safety
members only.
b. SecUons 2U80-215f37, (1959 SurV.lvon, Progl'Elm).
c. SecUon 21:>;61.5 (Local System ;jervice Credit).
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d. Section 21222.1 (SpeCial 5% inCre[l::Je - 1970).
8. Section 20983.6 (Waiver of age 70 retirement) for local
miscellaneous members only.
B. Public Agenc'y, 1n accordance wi th ~)ection 20740, Government Code,
shall cease to, be an "employer" for purpo:Jes of Chapter 6 of the
Public Employees' Retirement Law effective as of the effective date of
this amendment t9 contract. Accumulated contributions of PublIC
Agency 88 of the date of such amendment shall be fixed and detennined
as provided in Section 20759, Government Code, and such accumulated
contributions and contributions hereafter made shall be held by the
Hoard as provided in Section 20759, Government Cude.
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\\J\d. Pub~H' Ai:~tIIl"Y ~lhll,U contl'lbutu to :lilid netLrenu'IJ!. ::;Y~ltem /1t.l 1'0:.10w8:
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El. I':i th renpect t,) IfJI:.1Cfd lanel)u~l m8ub/"''l. the h('t:ncy shall con-
tribute the foJ.lowJng percent/:lgl;:' '.It' lI:onthly :w.l.aJ'..Lu:] HHrned as
mi~Jcellilneous mt~mbers of ~31ti.d Retlreml;nt :)Y~ltem:
(1) 4.447 pGrcent untll June ~O, lqH~ on account of the
liabL:::.ity for pr.Lor ~;,n'vi.ce ben(;r'it~l.
(2) 8.?68 percent on nccaunt of the liabIlity for current
service benefits.
(3) 0.227 percent on account of the llability for the 1959
Survivor Progrllm.
b. 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 :)0, 1988 on account of the
liability for prior service benefits.
(2) 10.561 percent on account of the liability for current
service benefits.
c. A reasonable amount per Annum, as fixed by the Board to cover the
coats of administering aa.Ld 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 rensonable amount HS fixed by the Hoard, pnYBbl." in one in~ltall-
ment as the occasions arise, to cover the costs of special valua-
tions on /Jccount of employee[J of F'ubJ.LC Agency. and costs of the
periodic Lnves~iglltj.on aud v:lluatjlltl~; requirud by law.
10. Contributiom~ re'ju.Lred of Public Agency and It~J employee~3 shall be
subject to adjustment by Board on account of amendments to the Public
Smployees' Ret.Lrement Law, and on account of the experience under the
Retirement System as determined by the IlerlodLc Lnv'-:::3tlgntion /Iud
valuation rc'qu.i. red by ~3Ili.d H et i renl(:n t Lnw.
11. Contri bu bons required of Public Agency un,j 1 U, :!mployees shall be
puid by Public Agency to the ReLLf'BlIlent ~;Y[jtern wLtllin thirty duys
after the end of the period to which suid contributions refer or as
may be IH't;~;\:rib(;d by Board regulation. If more or less thHn the
correct umount of contributions is paid for any period, proper
Ild.lustment ~jhA.ll be made in connt~ction with subsequent rClnlttances, or
adjustments on account of errors Ln contrIbutions required of Bny
employee muy be mHde by d.irect cash pnYIllenb3 between the employee Ilnd
the BOllrd. Payments by Public Agency to 1hlard lflllj' be made 111 the ['vrm
of warrants, bunk checks, bank drafts, certifl"d check:l, money ord 1'8
or cash.
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B. 'nLLs amendment ~;lillll b" utlached to :w.Ld C'lmt:l'i1ct :.nd ~llwl1 lJl: "ffective on
the ...______'___'____..______.___'.____ d ny of _.. .. __._. ___...dH__.. .__..._ .____ _ __ 1l)
Witnes~ our hands the
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BOARD OF ADMINI:3'l'HA'l'ION
PUBLIC ~jMPlOn~g~;' REfrTRl~MENf1' ~WS'I'!.:\l
(' I'!'Y COUNCIL
OF rj'HE
Ci'I'Y OF G'~l.HOY
BY
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Carl J. Dlechinger, Executive Officer
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Presidi-~g Officer a ,,-
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Attest:
BY
Approved as to form:
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t;~J0 &~LiJJ&l_
tythia G. BeB~t;;:; Legal Office. Date
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I, SUSANNE Eo STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution Noo 81-42 is an
original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held an the 20rb
day of April , 19~, 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 21st day of April
, 19 8 ~