Resolution 1995-49
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RESOLUTIOII 110. 95 - 49
RESOLUTIOII 01" THB COUNCIL OF TIIB CITY OF GILROY OF IIITBIITIOII TO APPROVE AN
AMBIIDMBIIT TO CONTRACT BBTWBBII TIIB BOARD 01" ADlUIIISTRATIOII 01" TIIB PUBLIC EMPLOYBBS'
RBTIRBMBIIlT SYSTEM AND TRE CITY COUNCIL 01" THB CITY OF GILROY
1IBBRBAS, 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
1IBBRBAS, 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
1IBBRBAS, the following is a statement of the proposed change.
To provide Ssction 21382.4 (Third Level of 1959 Survivor Benefits)
pursuant to Article 6 (commencing with Section 21380) for local
miscellaneous members and local safety members and Section
20930.3 (Military Service Credit as Public Service) for local
miscellaneous members and local police members.
IIOW, 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 19th day of June, 1995, by the following vote.
AYBS. COUIICILMBIIBBRS. GILROY, KLOECKER, MORALES, ROGERS, ROWLISON,
VALDEZ and GAGE.
IIOBS. COUIICILMBIIBBRS. 1I0De
ABSBNT' COUIICILllBMBBRS. 1I0De
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City Clerk ~
>>"lLbi. V
Mayor
RESOLUTION NO. 95 - 49
EXHIBIT
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AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND 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, hereinafter referred to as Public Agency, having entered
into a contract effective July I, 1968, and witnessed May 21, 1968, and as amended effective November
3, 1971, August I, 1973, January 1, 1975, July I, 1981, July I, 1982, January I, 1987, June 2, 1988,
June I, 1990, May 1, 1991, November 19, 1992, June 24, 1993, February 3, 1994 and August 17, 1994,
which provides for participation of Public Agency in said System, Board and Public Agency hereby agree
as follows:
A, Paragraphs 1 through 13 are hereby stricken from said contract as executed effective August 17,
1994, and hereby replaced by the following paragraphs numbered I through 13 inclusive:
I, 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 I, 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),
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. PERSONS COMPENSATED ON AN HOURLY BASIS.
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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 which represent 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 percentage of final compensation to be provided for local miscellaneous members for
each year of credited prior and current service shall be determined in accordance with
Section 21251,13 of said Retirement Law, subject to the reduction provided therein for
service prior to December 31, 1974, termination of Social Security, for members whose
service has been included in Federal Social Security (2 % at age 60 Full and Modified).
7. The percentage 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),
8. Public Agency elected and elects to be subject to the following optional provisions:
a, Section 21382.4 (Third Level of 1959 Survivor Benefits) pursuant to Article 6
(commencing with Section 21380).
b, Section 21361.5 (Local System Service Credit Included in Basic Death Benefit),
c, Section 21222,1 (Special 5 % Increase - 1970). Legislation repealed said Section
effective January 1, 1980.
d, Section 20862,8 (Credit for Unused Sick Leave),
e. Section 20024.2 (One-Year Final Compensation) for local safety members only.
f. Section 20818 (Two Years Additional Service Credit).
g. Section 20930,3 (Military Service Credit as Public Service), Statutes of 1976.
9. Public Agency, in accordance with Government Code Section 20740, ceased to be an
"employer" for purposes of Section 20759 effective on July I, 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 the contributions determined
by actuarial valuations of prior and future service liability with respect to local
miscellaneous members and local safety members of said Retirement System.
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11. Public Agency shall also contribute to said Retirement System as follows:
a. Public Agency shall contribute $2.00 per member, per month on account of the
liability for the 1959 Survivor Benefits provided under Section 21382.4 of said
Retirement Law. (Subject to annual change,) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a single account,
based on term insurance rates, for survivors of all local miscellaneous members
and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one installment 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,
c. A reasonable amount, as fixed by the Board, payable in one installment 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,
12, 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,
13, Contributions required of Public Agency and its employees shall be paid by Public
Agency to the Retirement System within fifteen 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
day of
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BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF GILROY
1'e;
BY -1'<%
Presiding ~er
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Witness Date
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BY ~
CHIEF ACTUARY ~
ACTUARIAL OFFICE <:)0
PUBLIC EMPLOYEES' ~MENT SYSTEM
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Attest:
AMENDMENT
PERS-CON-702A (Rev, 3/95)
Clerk
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 95-49
is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
June
, 19...,2L,
meeting of said Council held on the 19th day of
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
,1995.
June
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