Resolution 1986-40
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RESOLUTION NO. 86 - 40
RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY OF INTENTION TO
APPROVE AN A}lliNDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRA-
TION OF THE PUBLIC EMPLOYEES' RETIREllliNT 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
WHEREAS, one of the steps in the procedure to amend this
contract is the adoption by the governing body of the public agency
of a resolution giving notice of its intention to approve an amend-
ment 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 2% @ 50 Full formula (from 1/2 @
55 Full formula) for local police members and
Section 20862.8 (Credit for Unused Sick Leave)
for local fire members only.
NOW THEREFORE, BE IT RESOLVED that the governing body of
the above agency does hereby give notice of intention to approve
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 7th day of July, 1986, by the
following vote:
AYES: COUNCIL}lliMBERS: GAGE, KLOECKER, HUSSALLEM, PALMERLEE,
VALDEZ and HUG~~N.
NOES: COUNCILMEMBERS: None
ABSENT: COUNCIL~}ffiERS:
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AHENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AN D THE
CITY COUNCIL
OF THE
CITY OF GILROY
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above public agency, herein-
after 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 and July 1, 1982, which
provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective July 1, 1982, and hereby replaced by the following paragraphs
numbered 1 through 12 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 60 for local miscellaneous members and age 50 for
local safety members.
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).
Pl& DC NOT SIGN "EXHIBit ON~
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. ELECTED OFFICIALS; AND
b. PERSONS COt-1PENSATED 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
representing 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 fraction of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member
shall be determined in accordance with Section 21251.13 of said
Retirement Law with all service prior to Federal Social Security
termination December 31, 1974, subject to the reduction provided by
said section (2% at age 60 Full and Modified).
7. The fraction of final compensation to be provided~or 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).
8. The following additional prov1s10ns of the Public Employees'
Retirement Law, which apply only upon election of a contracting
agency, shall apply to the Public Agency and its employees:
a. Sections 21380 - 21387 (1959 Survivor Program) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits).
b. Section 21361.5 (Local System Service Credit), for local
miscellaneous members only.
c. Section 21222.1 (Special 5% Increase - 1970), Legislation
repealed said Section effective January 1, 1980.
d. Section 20862.8 (Unused Sick Leave Credit), for local fire
member s only.
9. Public Agency, in accordance with Government Code Section 20740,
ceased to be an "employer" for purposes of Section 20759 effective on
July 1, 1981. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20759, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20759.
Plle DO NOT SICN
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'1EXHf~lt ONLY"
10. Public Agency shall contribute to said Retirement System as follows:
a. With respect to local miscellaneous members, the agency shall
contribute the following percentages of salaries earned as
members of said Retirement, System:
(1) 0.094 percent until June 30, 2000 on account of the lia-
bility for prior service benefits. (Subject to annual
change.)
(2)
7.384 percent un
bility for current
change.)
~ 200C on ace_unt of the Ij~-
servic~ oenefits. (Subject~) ann~al
b. With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
(1) 1.382 percent until June 30, 1988 on account of the lia-
bility for prior service benefits. (Subject to annual
change.)
(2) 18.562 percent until June 30, 2000 on account of the lia-
bility for current service benefits. (Subject to annual
change.)
c. A reasonable amount, a~ fixed bv the Board, payable in one in-
stallment within 60 d2!~ oi dat: of contract to cover the costs
of administering said System ~s 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 in-
stallment 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.
11. 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.
12. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within thirty~ays
after the end of the period to Which said contributio~s refer or as
may be prescribed by Board regulation. If mere or less than the
correct amount of contribution~ 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 e~ployee and the
Board.
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B. This amendment shall be effective on the
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BOARD OF ADMINISTRATION uw~
PUBLIC EMPLOYEES' RETIRE~l SYSTEM
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BY -4
SIDNEY C. M~uSLAND,
EXECUTIVE~FICER
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Approved as to form:
'C~ 8, ~ [" ~ 1..1- g(,
Legal Office,
Date
PERS-CON-702 (AMENDMENT)
(Rev. 9/85)
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CITY COUNCIL
OF THE
CITY OF GILROY
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BY ~ '..t
Presiding ~~ er
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day of
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I, SUSANNE E. STEINMETZ; City Clerk of the City of Gilroy, do
hereby, certify that the attached Resolution No.
86-40
is an
original resolution, duly adopted by -the Council of the City of
Gilroy at a regular meeting of said Council held on the 7th
day of July , 19 ~, at which meeting a quorum was'
pres ent.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this 8th day of July
19 ~.