Resolution 1996-56
. . RESOLUTION NO: 96 - 51
RESOLUTION OF INTENTI
TO APPROVE AN AMENDMENT TO CONTRACI'
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 procedUR 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 procedures to amend this contrBct 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 $lImma'Y
of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide 2% @ 55 Full and Modified formula for local
miscellaneous members, including an extension of the funtHng
period to the year 2011.
, NOW, TIIEREFORE, 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
said public agency 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.
By &yt<-U J ~
Presiding Officer
Mayor
Title
September 3, 1996
Date adopted and approved
(AmondmonQ PASSED AND ADOPTED this 3rd day of September, 1996 by the following vote:
CON-302 (Rev. 4196) AYES: COUNCILMEMBERS: GILROY, MORALES, ROGERS, ROWLISON, SPRINGER,
VALDEZ and GAGE.
COUNCILMEMBERS: None
COUNCILMEMBERS: None
NOES:
ABSENT:
96 - 56
RESOLUTION NO.
.
.
EXIllBIT
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 1, 1968, and witnessed May 21, 1968, and as amended
effective November 3,1971, August 1, 1973, January 1, 1975, July 1, 1981, July I, 1982, January
1,1987, June 2,1988, June 1,1990, May 1, 1991, November 19, 1992, June 24,1993, February 3,
1994, August 17, 1994, and August 17, 1995 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, 1995, and hereby replaced by the following paragraphs numbered 1 through 13
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 55 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);
.
.
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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.
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 t1iereunder. 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 fina1 compensation to be provided for local miscellaneous
members for each year of credited prior and current service shall be determined in
accordance with Section 21354 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 hasbeen included in Federal Social Security
(2% at age 55 Full and Modified).
7. The percentage of fina1 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 21362 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 2 I 573 (Third Level of 1959 Survivor Benefits).
b. Section 21536 (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 20965 (Credit for Unused Sick Leave).
e. Section 20042 (One-Year Final Compensation) for local safety members
only.
.
.
r' ~I (''" "n ~ir'T C""~1"EXH1BIT ONLY"
t'L~; t,.::;t Uv Ii\) 0HJI\
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.
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
asse.ts 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 21354 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 55 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 21362 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 21573 (Third Level of 1959 Survivor Benefits).
b. Section 21536 (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 20965 (Credit for Unused Sick Leave).
e. Section 20042 (One-Year Final Compensation) for local safety members
only.
.
.
PLU,2E DQ NOT SIGN "EXHIBIT ONLY"
f. Section 20903 (Two Years Additional Service Credit).
g. Section 21024 (Military Service Credit as Public Service), Statutes of 1976.
9. Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on July 1, 1981.
Accumulated contributions of Public Agency shall be fixed and determined as
provided in Government Code Section 20834, and accumulated contributions
thereafter shall be held by the Board as provided in Government Code Section
20834.
10. Public Agency shall contribute to said Retirement System the contributions
determined by actuaria1 valuations of prior and future service liability with respect
to local miscellaneous members and local safety members of said Retirement
System.
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 21573 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
bylaw.
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
,19_.
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BOARD OF ADMlNlSTRATION ~
PUBLIC EMPLOYEES' RETIREMENT ~TEM
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BY ~ BY
KENNETH W. MARZlON, ~F
ACTUARIAL & EMPL~"~'.~~RVICES DIVISION
PUBLIC EMPLOYEES' ~J.K.CMENT SYSTEM
~
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CITY COUNCIL
OF TIIE
CITY OF GILROY
PRESIDING OFFICER
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Attest:
Clerk
AMENDMENT
PERS-CON.702A (Rev. 8\96)
.
.
~
I, SUSANNE E. STEINMETZ, city Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 96-56
is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the
3rd
day of
September, 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 september
19 96.
(Seal)