Resolution 1988-18
. ~-
.
.
.~.
..
RESOLUTION NO. 88 - 18
RESOLUTION OF INTENTION TO APPOVE 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
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 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 Section 20862.8 (Credit for Unused Sick Leave)
for local miscellaneous members.
NOW, THEREFORE, BE IT RESOLVED that the government 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 4th day of April, 1988 by the following vote:
AYES:
COUNCILMEMBERS: GAGE, HALE, KLOECKER, MUSSALLEM, PALMERLEE, VALDEZ
and HU:; HAN .
COUNCILMEMBERS: None
NOES:
ABSENT: COUNCILMEMBERS: None
A:1~
~ City
RESOLUTION NO. 88 - 18
.
* * *
"EXHIBIT A"
* * *.
. ,
C.O P Jf
o~~
r!~~\
,'~r--:
\G~
\\ s\
o~o
..(. ~ PUBLIC
"'"......\00
~\.\,'t'..,
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
EMPLOYEES' RETIREMENT
AND THE
CITY COUNCIL
OF THE
CITY OF GILROY
SYSTEM
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, July 1, 1982, and January
1, 1987, 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 January 1, 1987, 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 contract-
ing 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).
.
* * *.
* * *
c.o p ,Y
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:
5.
;.,
6~
~
t;;:.
~
it
2~'"
~
(j
(~
(;
.;$
'..
7.
()
<:.j
~
~
q:
8.
a. ELECTED OFFICIALS; AND
b. PERSONS COMPENSATED ON AN HOURLY BASIS.
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 thereun&er. 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.
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).
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).
The following additional provisions 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 Benefits) 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 members
and local miscellaneous member only.
.
,
. * * *
COP Y
* * *.
. .'
, ,
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.
10. Public Agency shall contribute to said Retirement System as follows:
With respect to local miscellaneous members, the
contribute the following percentages of salaries
members of said Retirement System:
;:.
#(1)
a
t-..
~.
(~
.:::'V
a.
agency shall
earned as
0.000 percent on account of the liability for current
service benefits. (Subject to annual change.)
With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
.;::..
(,....
(..~
,)
~
r--"
....~
~
rQ
....;
(~
(.,.)
~
~.
(1) 0.278 percent until June 30, 1988 on account of the
liability for prior service benefits. (Subject to annual
change.)
(2) 16.843 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change. )
c.
A reasonable amount, as fixed by the Board, payable in one in-
stallment 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 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.
.
.
.
* * *
COP Y
* * *.
, .
12. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within 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.
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 effective on the
.,', 19
'J'
BOARD OF ADMINISTRATION :M~
PUBLIC EMPLOYEES' RETIRE~. .SYSTEM
..-~
BY ~.
SANDRA C. LUND ~f
ASSISTANT E~~~TIVE OFFICER
BENEFIT SER~S
~Q.
~,. .
~
~)
day of
,
,.~
~
~
~
BY ~
Presiding Offi~
~':::..
~~
c";f
f:::..
Witness Dat~'
O.
Attest: <::;)
~.
$
Clerk ,.
CITY COUNCIL
OF THE
CITY OF GILROY
'"
PERS-CON-702 (AMENDMENT)
(Rev. 9/86)
..
.
.
I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 88-18
is an original
'.
, '.. ~
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the 4th 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 5th day of April
1 9 88.
i2f!~~t~ilr~Y
(Seal)