Ordinance 818
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ORDINANCE NO. 818
AN ORDINANCE OF THE
CITY COUNCIL
(Name of Governing Body)
of the
CITY OF GILROY
(Name of Public Agency)
authorizing a
CONTRACT BE~EEN THE City Counc i 1
(Governing Body)
AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA STATE EMPLOYEES'
RETIREMENT SYSTEM.
The City Counci 1
(Name of Governing Body)
does ordain as follows:
of the
City of G i 1 roy
(Name of Public Agency)
SECTION 1.
That a Contract between the
City Counci 1
(Name of Governing Body)
and the Board of Administration,
of the City of G i I roy
(Name of Public Agency)
California State Employees' Retirement System is hereby authorized, a copy of
said Contract being attached hereto, marked "Exhibit A," and by such reference
made a part hereof as though herein set out in full.
SECTION 2.
The
Mayor
(Title of Presiding Officer)
is hereby authorized, empowered, and
of the City Counci I
(Name of Governing Body)
directed to execute said Contract for and on behalf of said Agency.
SECTION 3. This Ordinance ~al~ take effect ~ days after the date of its
adopti on, and pri or to the -e-Jf'~:i:-~~!?cM ~ -..:=.:.: ""'lia-j"8- -:f.p.em -1;ae. -1'a-8-8-&~ thereof shall
be published at least once in the Gilr00 Evenin9 Dispatch
Name of Newspaper)
a newspaper of general circulation, publis~ed and circulated in the City of
(Name of
and thenceforth and thereafter the same shall be in full
,
Gi lroy
Public Agency)
force and effect.
Adopted and approved this
the following vote:
Ayes: Councilmembers: Allemand,Kennedy,Quartiroli,Silva,Wentworth, and
Goodrich.
Councilmembers: None
20th
day of
May
1968 ~ by
Absent:
Councilmembers: Duffin
~~~
Noes:
Attest:
l_ ,.f
UJ a?Y'v?w) Y P t:;;;~
(Contract)
8/8
Ret. Form 128 (Rev. 3/57) 300
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EXHIBIT A
CONTRACT
BET1:JEEN THE
BOAHD OF ADEINISTRATION
PUBLIC :E.l1PLOYEES' RETlREI:1ENT SYSTEM
AND THE
CITY COUl-JCIL
OF THE ,
CITY OF GILROY
In consideration of the covenants and agreement hereafter contained and on
the part of both parties to be kept and performed, the CITY COUNCIL of the CITY OF
GILROY, hereafter referred to as "Public Agency" and the Board of Administration,
Public Bmployees' Retirement System, hereafter referred to as "Board" hereby agree
as follows:
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. If Normal retirement agelf
shall mean age 60 for miscellaneous members and age 55 for local
safety members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after JuL1y Il , 19...Q.a, making its employees
as hereinafter provided, members of said System subject to all pro-
visions 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
such as by express provisions thereof apply only on the election of
contracting agencies.
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 firemen (herein referre:d to as local safety members);
b.
Local policemen (herein referred to as local safety members);
c.
Emolovees other than local safety members (herein referred to
as-mi~cellaneous members).
The following employees shall be excluded from memb~rship in said
Retirement System:
EXCLUDE PERSONS COI'1PENSA TED ON AN HOURLY BASIS
EXCLUDE ELECTIVE OFFICIALS
4. Assets heretofore accumulated with respect to members in the local
Retirement System shall be trans.ferred to the Public Employees' Re-
tirement System within four months after the effective date of this
contract and applied against the liability for prior service incurred
Ret. l<'orm 126-1
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hereunder. That portion of the assets so transferred which represents
the accumulated contributions (plus interest thereon) required of the
employees under said local system shall be credited to the individual
membership account of each such employee under the Public Employees'
Retirement System.
5. The fraction of final compensation to be provided for each year of
credited service as a miscellaneous member upon retirement at normal
retirement age shall be 1/60 and shall be applied as provided in
Section 21251.1 of said Retirement Law and reduced to 1/90 for members
covered under Federal Social Security in accordance with Section 21251.14
of said Retirement Law.
6. The fraction of final compensation to be provided for each year of
credited service as a local safety member shall be determined in accord-
ance with Section 21252.i~ and shall be reduced for members covered under
Federal Social Security in accordance with Section 21252.45 of said
Retirement Law.
7. Benefits on account of prior service shall be 100% of the fraction of
final compensation specified for miscellaneous members in Paragraph 5
above, but computed in accordance with Section 21253 of said Retirement
Law, and for local safety members shall be 100% of the fraction established
in accordance with Paragraph 6; provided, however, as to both miscellaneous
and local safety members that said fraction shall be reduced qy one-third
for application to the first $400.00 per month of final compensation of
any member whose position is covered qy Federal Social Security for all
prior service of such member, whether or not the service is included in
Federal Social Security.
8. The retirement benefits payable upon retirement for ordinary disability
shall not be affected by the modification provided in Paragraph 5 and 6
of this contract except that for the purposes of the limit on any such
allowance imposed under Section 21297, Government Code, allowances for
retirement for service shall be computed according to the modified
formula set out in Paragraph 5 and 6 of the contract. All other provi-
sions of this contract shall be fully applicable to the computation of
allowances upon retirement for disability.
9. Contributions for miscellaneous and local safety members shall be sub-
ject to Sections 20601.5 and 20612 of said Retirement Law respectively,
said sections providing for a reduction in rates of contribution as such
rates relate to the first $400.00 of monthly co~oensation and 100% of
such rates as they apply to the remainder of the monthly compensation.
Members whose positions are excluded from Social Security coverage
shall contribute in accordance with Sections 20601 and 20607.5 of said
Retirement Law.
10. The following additional provlslons of the Public Employees' Retirement
Law which apply only upon election of a contracting agency shall apply
to the Public Agency and its employees:
Ret. Form 126-2
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a. Section 20024.01 (defining ufinal compensationtl on the basis of a
period of three consecutive years).
b. Section 21258(b) (providing a minimum retirement allowance of $720.00
per year under certain conditions).
c. Section 21367.51 (providing a $400.00 death benefit upon death after
retirement) .
d. Section 20025 (providing for inclusion of compensation without limit
in computations where conpensation is a factor).
e. Section 21365.5 (providing a monthly allowance in lieu of the basic
death benefit for certain survivors of a member who dies in employ-
ment after qualifying for voluntary service retirement).
f. Section 20605.5 (providing that the normal rate of contribution for
those employees who were members of the Local Retirement System
shall be based on age at entry into said local system).
g. Section 21361.5 (providing that years of service rendered as a member
of the Local Retirement System prior to the effective date of this
contract shall be included in the computation of the basic death
benefit provided in Section 21361 upon the death of any member who
was also a member of said local system).
11. Public Agency shall contribute to said Retirement System as follows:
a. With respect to miscellaneous members, the city shall contribute
the following percentages of monthly salaries earned as miscellaneous
members of said System:
(1) 3.880 percent until June 30, 1988 on account of the liability
for prior service benefits less 0.361 percefit of total salaries
paid to members for each $10,000 of assets transferred to the
Public Employees' Retirement System to the extent such transferred
assets exceed the accumulated local system contributions of melnbers
transferred under Paragraph 4.
(2) 4.711 percent on account of the liability for current service
benefits.
b. With respect to local safety members, the city shall contribute the
followi_ng percentages of monthly salaries earned as local safety
members of said System:
(1) 5.922 percent until June 30, 1988 on account of the liability
for prior service benefits less 0.369 percent of total salaries
paid to members for each $10,000 of assets transferred to the
Public Employees' Retirement System to the extent such trans-
ferred assets exceed the accumulated local system contribution:s
of members transferred under Paragraph 4.
Ret. Form 126-3
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(2) 8.790 percent on account of the liability for current service
benefits.
c. A reasonable amount per annum, as fixed by Board to cover the costs
of administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or the period-
ical investiGations and valuation required by law, provided that said
amount shall be determined on the basis of the number of employees
of Public Agency who are reported as members on a payroll to be
designa.ted by this System covering one month of each year, or with
respect to the first year of participation, on the effective date of
said participation.
d. A reasonable amount as fixed by the Board, payable in one installment
as the occasions arise, to cover costs of special valuations on
account of employees of Public Agency, and costs of the periodical
investi.'1'ation and valuation required by law.
12. Contributions required of Public Agency and its employees shall be sub-
,ject to adjustment by Board on al~count of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System, as determined by the periodical 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 thirty days
after the end of the period to which said contributions refer. 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 re-
quired of any employee may be made by direct cash payments between
the employee and Board. Payments by Public Agency to Board may be
made in the form of warrants, bank checks, bank drafts, certified
checks, money orders, or cash.
Witness our hands this
day of
.
BOARD OF ADMINISTRATION
PUBLIC EHPLOYEES' Rl!~TIlEMENT SYSTEr1
CITY COUNCIL
OF THE
CITY OF GILROY
Attest:
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BY
William E. Payne, Executive Officer
BY
Presiding
Ret. Form l26-h