Ordinance 1986-23 ORDINANCE NO. 86-23
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE
CITY COUNCIL OF THE CITY OF GILROY AND THE BOARD OF ADMINIS-
TRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
The City Council of the City of Gilroy does
ordain as follows:
Section 1. 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 thereof as though herein set out in full.
S'eCtion 2. The Mayor of the City is hereby authorized,
empowered, and directed to execute said amendment fur and
on behalf of the City.
Section 3. This ordinance shall take effect
January 1, 198~.
Section 4. This is an Emergency Ordinance which
shall take effect immediately upon its passage and approval.
The facts and circumstances giving rise to the emergency are
as follows:
Adoption of this Ordinance to take effect
January 1, 1987, is necessary to comply with
wage agreement with the Police Bargaining
Unit. Under normal adoption procedures, this
Ordinance would not be effective until January 14,
1987.
This Ordinance was introduced as an emergency
measure and passed and adopted to become effective immediately
ORDINANCE NO. 86-,23 -1-
and ordered published by title and summary in accordance
with provisions of the City Charter at a regular session of
the City Council held on the 1st day of December 1986, by
the following vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS: ALBERT, GAGE, KLOECKER,MUSSALLEM,
PALMERLEE, VALDEZ and HUGHAN
COUNCILMEMBERS: NONE
COUNCILMEMBERS: NONE
APPROVED:
~Mayor
ATTEST:
ORDINANCE NO. 86-23 -2-
EXHIBIT "A"
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 am Boerd, 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 and July 1, 1982, which
provides for participation of.Public Agency in said System, Board and Public
Agency hereby agree as follows:
Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective July 1, 1982, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
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 lo·al miscellaneous members and age 50 for
local safety members.
Public Agency shall participate in the Public Employees' Retirement
System fro~ 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 ~hereof~ apply only on the election of a contracting agency.
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);
LoCal Police Officers (hereim referred to as local safety
members);
Employees other than local safety members (hereim' referred to as
local miscellaneous members).
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:
ELECTED OFFICIALS; AND
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 thereunder. 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, 197q, 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'
~etirement Law, which apply only upon election of a contracting
agency, shall apply to the Public Agency and its employees:
Sections 21380 - 21387 (1959 Survivor Program) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits).
Section 21381.3 (Local System Service Credit), for local
miscellaneous members only.
Section 21222.1 (Special 53 Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
d4
3action 20862.8 (Unused Sick Leave Credit), for local fire
.members only.
Public Agency, in accordance with Government Code SeCtion 20740,
ceased to. be an "employer" for purposes of Section 20759 effective om
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.
11.
12.
Public Agency shall contribute to said Retirement System as follows:
With respect to local miscellaneous members, the agency shall
contribute the following perccntages of salaries earned as
members of said Retirement System:
(1)
0.09# percent until June 30, 2000 on account of the lia-
bility for prior service benefits. (Subject to annual
change.)
(2)
7.384 percent until June 30, 2000 on account of the lia-
bility for current service benefits. (Subject to annual
change.)
be
With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
(1)
1.382 percent until June 30, 1988 on account of the lia-
bility for prior service benefits. (Subject to annual
change.)
(2)
18.562 percent until June 30, 2000 on account of the lia-
bility for c~rrent service benefits. (Subject to annual
change.)
i reasonable amount, as fixed by the Board, payable in one
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 ~oard, 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.
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.
Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within thirty days
affcer the end of the period to which said contributions refer or aa
may be prescribed by Board regulation. If more or less than the
correct amount :Sf contributions is paid for any period, proper
adjustment shall be made in connection with subsequent remittances.
Adjustments cn account of errors in contributions required of amy
employee may be made by direct payments between the employee and the
Board.
B. This amendment shall be effective on the
day of
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF GILROY
BY
KENNETH G. THOMASON,
ACTING EXECUTIVE OFFICER
BY
Presiding Officer
Witness Date
Approved s~ to form:
Legal Office,
Date
Attest:
Clerk
Date
PERS--CON-702 (AMEHDMENT)
(Rev. 9/85)
I, SUSANNE E. STEINMETZ, City Clerk of the City of
Gilroy, do hereby certify that the attached Ordinance No. 86-23
is an original ordinance, duly adopted by the Council of the City
of Gilroy at a regular meeting of said Council held on the 1st
day of
present.
December , 19 86
, at which meeting a quorum was
affixed the Officia'l Seal of the City of Gilroy, this
of December , 19 86
~ty Clerk of the City of Gilroy ~
IN WITNESS WHEREOF, I have hereunto set my hand and
3rd day
(Seal)