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Resolution 1982- 40 '" '" . . ... . ........ .1 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: ~~~ RESOLUTION NO. 82-~0 ~~ ~" _e.~ ~~.~ Mayor . , . . 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: " ':('~ 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 ....~~. ...,' .-....-..............-.. ..~.....~h,...... r " I . . i i 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- .....1 I ment Law, which apply only upo~~~lection of a contracting agency shall apply to the Public Agency ana91ts employees: ~ a. Section 20952.5 (Age 50 vo~tary retirement) for local safety members only~ () . . 'h b. Sections 21380-21387, (1959 S~ivors Program), excluding Section 21382.2 (Increased 1959 Survivo~ benefits). -0 c. ~Section 21361.5 (Local System Se~'ce Credit) ~or local miscellaneous members only. . ~ -;6 d. Section 21222.1 (Special 5% increas~ 1970). ~ 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.' . ~ . . 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. .. ~ (2) 18.756 percent on ac~ount of th~ liability for current servi ce benefi ts. ~ ~ 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. . . "'t- __._. ~ . ~r- . f 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 19_ BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF GILR~ ~ ~ '" 8 BY C~rl J. Blechinger, Executive Officer BY Presiding Of~er g. ~ ~: Approved as to form: Attest: I ./J~2$.u 3/1 O/t:>. Besemer, Legal Office, Date Clerk ioI! , ~ ~ ~ ~ ~ PERS .CON-702 . . . .. i - ~ 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 , 19 82 .