Ordinance 987
ORDINANCE NO. 987
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING AN AMEND-
MENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
The City Council of the City of Gilroy does ordain as follows:
SECTION I.
That an amendment to the Contract between the City
Council of the City of Gilroy and the Board of Administration, California
Public Employees. Retirement System is hereby authorized, a copy of said
amendment 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 of the City Council is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said
Agency.
SECTION 3. This Ordinance shall take effect 30 days after the
date of its adoption, and prior to the expiration of 3 days from the passage
thereof shall be published at least once in the Gilroy Dispatch, a newspaper
of general circulation, published and circulated in the City of Gilroy and
thenceforth and thereafter the same shall be in full force and effect.
PASSED AND ADOPTED this 2nd day of July, 1973 by the following vote:
NOES:
COUNCIL MEMBERS: DeBELL, DUFFIN, HUGHAN, PATE, SILVA,STOUT
and GOODRICH.
COUNCIL MEMBERS: None
AYES:
ABS ENT:
COUNCIL MEMBERS: None
APPROVED:
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ORDINANCE NO. 987
AMENDHENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
,PUBLIC EMPLOYEES' RE'rIREMENT SYSTEM
MID THE
EXHIBIT A
C.ITY COUNCIL
OF THE
CITY OF GILROY
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the CITY COUNCIL of the CITY OF GILROY, hereinafter referred
to as Public Agency having entered into: a contract under date of May 21, 1968, effec-
tive July 1, 1968, and as amendedeffec~ive November 3, 1971, and as provided by
Chapters 170 and 316, Statutes of 1971,1 which provide for participation of Public
Agency in .said System, Board and publici Agency hereby agree as follows:
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A. Paragraphs 1 through 12 are he~eby stricken from,said contr~ct as executed
effective July 1, 1968, and ar~ hereby replaced by the following paragraphs
numbered 1 through 11 inclusii: ' :
1. All words and terms used ~erein which are defined in th~ Public Employees'
R~tirement Law shall have ~he meaning as defined therei* unless otherwise
specifically provided. "~ormal retirement age" shall mean age 60 for
miscellaneous members and lage 55 for local safety members.
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2. Public Agency shall parti9ipate in the Public Employees 1 Retirement
System from and after ,Tuly 1, 1968, making its employe~s as herein-
after provided, members o~ said System subject to all provisions of
the Public Employees' Ret~rement Law except such as apply only on
election of a contracting ,agency and are not provided fbr herein and
to all amendments to said I Law hereafter enacted except such as by ex-
press,provisions thereof apply only on the ~lection of fontracting
agencles.; .
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3. Employees of Public AgenCr in the following classes shall become
members of said Retiremen~ System except such in each such class as
are excluded by law or this agreement:
a. Local firemen (herein referred to as local safety members);
b. Local policemen (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to
as miscellaneous members).
The following employees shall be exciuded from membership in said
Retirement System:
PERSONS COMPENSATED ON AN HOURLY BASIS.
ELECTED OFFICIALS.
Yor::. -:-.~---
4.
Assets accumulated with respect to members in the local Retirement
System were transferred to the Public Employees' Retirement System
within four months after the effective date of 'this contract and
, applied against the liability for prior service incurred hereunder.
5.
That portion of .the assets so transferred which represented the
accumulated contributions (plus interest thereon) required of the
employees under said 10ca.:L system were credited to the individual
membership account of each such employee under the Public Employees'
Retirement System. I
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The fraction of 'final compensation to be provided for each year of
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credited prior and curren~ service as a misc~llaneous member upon
retirement at normal reti~ement age shall be, applied as provided in
Section 21251.13 of said ~etirement Law and Fhall be reduced by one-
trird for application to ~he first $400 of mpnthly compensation of
members covered under Soc~al Security, provi~ed however, that said
r~duced fraction shall ap~lY with respect to all service,. of such
member whether or not the Iservice is included in Federa~ Social
Securi ty . I i
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~he f~action of final comrlensation to be provided for each year of
dredited prior and curren~ service as a local safety me~ber shall be
determined in accordance vfith Section 21252.1 of the Retirement Law
and shall be reduced for ~embers covered under Federal $ocial Security
in accordance with Section 21252.45 of said Retirement taw providing
that said fraction shall *e reduced by one-third for application to
the first $400 per month q,f final compensation of any m~mber whose
position is covered by Federal Social Security for all ~ervice of such
member, whether' ~ not th$ service is included in Feder~l Social
Security. i! !
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Contributions for miscell~neous and local safety member's shall be sub-
ject to Sectio~s 20603 ana 20612 of said Retirement La~ respectively,
said sections providing fpr a reduction in ra.tes of contribution as
such rates relate to the first$l~O of monthly compensation and 100%
of such rates as they app~y to the remainder of the monthly compensa-
tion. Members whose positions are excluded from Social Security cover-
age shall contribute in accordance with Sections 20603 and 20602 of
said Retirement Law as applied to the full formula without modification.
6.
7.
, 8.
The following additional provisions of the Public Employees' Retirement
La,., which apply only upon' election of a contracting agency shall apply
to the Public Agency and its employees:
a. Tbat portion of Section 21251.13 'which provides for reduction in
the percentage of final compensation for miscellaneous members
covered under Social Security.
b. 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 inclucled in the comput.ation of the basic
death benefit provided in Section 21361 upon the death of any meUl-
ber who was also a member of said local system).
c. Section 20952.5 (providing for age 50 as the minimum voluntary
retirement age for local safety members with benefit payments
commencing prior to age 55 subject to actuarial discount).
9. Public Agency shall contribute to said Retirement System as follows:
a.
With respect to misceflaneous members, the agency shall contribute
the following percentages of monthly salaries earned as miscella-
neous memb~rs of said! System:
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(1) 1.63 percent untlil June 30, 1980 on account of the liability
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for ptior servide benefits. I
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(2) 7.18 percent on ,account of the liafility for current service
benefits. I I
With respect to loca~ safety members, the agency shall contribute
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the fOllOWi.Dg perce%ges of monthly sataries,earnjd as local
safety members of sa.d System: . .
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(1) 2.9B4ipercent til June 30, 1988 on account hf the liability
for "prior aervi e benefits.' I
(2) 10.749 percent In account of the ~iability fOr: current service
benefits. I I I
(3) A lum~ sum of $~,432 payable with~n 30 days of the effective
date of this am4ndment on account lof the prov~sions of
Sectibn 21222.110f the Government !Code. I
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A reasonabiLe amount JPer a.nnum, as fixeq by Board tp cover the
costs of a~ministeri~g said System as it affects the employees
of Public ~gency, not including the co~ts of speci~l valuations
or of the periodical: investigation and:valuation r~equired by law.
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A reasonable amount ~a fixed by the Board, payable in one install-
ment as the occasions arise, to cover costs of special valuations
on account of employees of Public Agency, and costs of the period-
ical investigation and valuation required by law.
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10.
Contributions required of Public Agency and its employees shall be
subject to adjustment by: Board,on account of ~nendments to the Public
Employees' Retirement Law, and on account of experience under the
Retirement System as determined by the periodical investigation and
valuation required by said Retirement Law.
11. Contributions required of Public Agency and its employees shall be
paid by pw)lic 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
Fon:, 'i', ~-~~
') subsequent remittances, or adjustment on account of errors in contri-
butions required of any employee may be made by direct cash payments
between the emp;loyee and Board. Payments by Public Agency to Board
may be made in ~he form of warrants, bank checks,bank drafts, certi-
fied checks, mopey orders, or cash. .
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This amendment sha~l be atta.c~ed to
on the I
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B.
Witness our hands this
BOARD OF ADMI~ISTRATION .
PUBLIC EJ.1PLOYEES' RETIREMEN'lj
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SYSTEM
BY
William E. Payne, Executive Officer
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said contradt and shall be effective
day of I
day of
CITY C0UNCIL
OF THE!
CITY OF GILROY
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BY i (',
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Pres?-ding Off~c~r ,,,,;Jj\,'~ .
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Attest:
Fo;:-'.:.:;, "r:'/2 -,\
I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby
certify that the attached Ordinance No. 987 is an original ordinance,
duly adopted by the Council of the City of Gilroy at a regular meeting of
said Council held on the 2nd
da y of
July
, 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
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City Clerk of the of Gilroy
July
, 19 li.
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