Resolution 1982- 40
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RESOLUTION NO. 82 - 40
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY OF I~TENTION TO
APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE
CITY OF GILROY.
WHEREAS, the Public Employees' Retirement Law permits the
participation of public agencies and their employees in the Public
Employees' Retirement System by the execution of a contract, and sets
forth the procedure by which said public agencies may elect to subject
themselves and their employees to amendments to said Law; and
TiJHEREAS, one of the steps in the procedure to amend this
contract is the adoption by the legislative body of the public agency
of a resolution giving notice of its intention to approve an amendment
to said contract, which resolution shall contain a summary of the
change proposed in said contract; and
WHEREAS, the following is a statement of the proposed
change:
To provide a formula change from 7z at 55
full Formula to 2% at 50 Full Formula for
local safety members.
NOW, THEP~FORE, BE IT RESOLVED, that the governing body
of the above agency gives, and it does hereby give notice of inten-
tion to approve an amendment to the contract between the said govern-
ing 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 22nd day of March, 1982, by the
following vote:
NOES:
COUNCIL MEMBERS: ALBERT, GAGE, HUGHAN, LINK,
TAYLOR, VALDEZ and GOODRICH.
COUNCIL MEMBERS: None
AYES:
ABSENT:
COUNCIL MEMBERS: None
APPROVED:
ATTEST:
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RESOLUTION NO. 82-~0
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Mayor
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AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY -COUNCIL
OF THE
CITY OF GILROY
The Boaro of Administration, Public Employees' Retirement System, herp-in-
after referred to as Board, and the governing body of above public agency, here-
inafter 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, 'January 1, 1975, and July 1, 1981, which provides for
participation of Public Agency in said System, Bo&rd and Public Agency hereby
agree as follows:
A.
Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective July 1, 1981, and hereby replaced by the following paragraphs
pumbered 1 through 11 ~n~lusive:
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All words and term~sed herein which are defined in the Public
Employees' Retireme~~ Law shall have the meaning as defined therein
unless othe:r.vise sp~fically provided. "Normal retirement age" shall
mean age 60 for loca~miscellaneous and age 50 for local safety
members. ~
9.
Public Agency shall pa~icipate in the Public Employees' Retirement
System from and after ~y 1, 1968 making its employees as hereinafter
provided, members of s~ System subject to all provisions of the
Public Employees' Retire~nt Law except such as apply only on election
of a-contracting agency~d are not provided for herein and to all
amendments to said Law h~after enacted except such as by express
provisions ther~of apply ~lY on the' ele~tion of contracting agencies.
Employees of Public AgencBn the following classes sha.ll become
members of said Retiremen~~stem except such in ~ach such class as
are excluded by law or this :greement: ". .
1.
2.
3.
a. Local Firemen (herein'referred to as local safety members);
b. Local Policemen (herein .ref~rred 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
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4. 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 thereunder. That portion of the assets so
transferred which represented the accumulated contributions (plus
interest thereuP9n) required of the employees under said local system
has been credited to the individual membership account of each such
emp10yee under the Public Employees' Retirement System.
5. 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.
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 21252.01 of said Retirement Law
(2% at age 50 Full).
7. The following additional provlslons of the Public Employees' Retire-
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ment Law, which apply only upo~~~lection of a contracting agency shall
apply to the Public Agency ana91ts employees:
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a. Section 20952.5 (Age 50 vo~tary retirement) for local safety
members only~ ()
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b. Sections 21380-21387, (1959 S~ivors Program), excluding Section
21382.2 (Increased 1959 Survivo~ benefits).
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c. ~Section 21361.5 (Local System Se~'ce Credit) ~or local
miscellaneous members only. . ~
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d. Section 21222.1 (Special 5% increas~ 1970).
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e. Section 20983.6 (Waiver of age 70 ret~ment)'for local miscel-
laneous members only. ~'. '..
8. Public Agency, in accordance with Section 20740, Government Code,
ceased to be an "employer" for purposes of Chapt~r 6 of t~e Public
Employees' Retirement Law effacH ve~on July .1, 1981. Accumulated
contributions of Public Agency as of the ~forementioned date shall be
fixed and determined as provided in Section 20759, Government Code,
and accumulated contributions as of the aforementioned date and
contributions thereafter made shall be held by the Board as provided
in Section 20759, Government Code.'
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9. Public Agency shall contribute to said Retirement System as follows:
a. 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.
b.
(3) 0.227 percent on account of the liability for the 1959
Survi vor program~
Wi th respect to local s1~y members', the agency shall contribute
the following percentages ~monthly salaries earned as local ".
sa~ety members of sai? Reti~~nt System:
(1) 3.215 percent until June~" 1988 on account "of the
liabili ty for prior servic~~nefi ts. ..
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(2) 18.756 percent on ac~ount of th~ liability for current
servi ce benefi ts. ~
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A reasonable amount per annum, as fixe~~he Board to cover the
costs of administering said System as it fects the employees of
Public Agertcy, not including the costs of cial valuations or
of the periodic investigation and valuations~equired by law.
c.
d.
A reasonable amount as fixed by the Board, payable in one install-
~ent as the occasions arise, to cov~r the costs of special valua-
.tions on account of employees of Public Agency~ and cOsts of the
periodic investigation and valua,tions required by law.
10. 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 s~id Retirement ~aw.
11. Contributions required of Public Agency and its ~mployees shall be
paid by Public Agency to the Retirement System wi thin 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
~he Board. Payments by Public Agency to Board may be made in the form
of warrants, bank checks, bank drafts, cer.tifi~d checks, money orders
or cash.
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B. This amendment shall be attached to said contract and shall be effective on
the day of 1 9
Witness our hands the
day of
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BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF
GILR~
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BY
C~rl J. Blechinger, Executive Officer
BY
Presiding
Of~er
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Approved as to form:
Attest:
I ./J~2$.u 3/1 O/t:>.
Besemer, Legal Office, Date
Clerk
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PERS .CON-702
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 82-40
is an
original resolution, duly adopted by the Council of the City of
adjourned
Gilroy at a/regular meeting of said Council held on the 22nd
day of
March
, 198L, 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
23rd
day of March
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