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HomeMy WebLinkAboutResolutions - No. 2931RESOLUTION NO. 2931 RESOLUTION OF INTENTION TO APPROVE CONTRACT FROVIDIrzrs FOR PARTICIPATION IN STATE EMPLCYF,ES° RETIREMENT SYSTEM WIEREAAS, the State Employees' Retirement Law permits the par- ticipation of Public Agencies in the State Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and Wi1RtEAS, one step in said procedure is the adoption by the Governing Body of the Public Agency of a resolution giving notice of intention to approve a contract for such participation between said Governing Body and the Retirement System Board of Administration, which resolution shall contain a summ.ary of the major pro- visions of the proposed retirement plan; and l'"11-1RrAS, attached is a summary of the major provisions of the proposed plan; NOW, THEREFORE, EE IT RESOLVED, that the CITY COUNCIL of the CITY CF LODI eives. and it does hereby give notice of intention to approve a contract between said CITY COUNCIL and the Board of Administration of the State Employees' Retirement System, providing for participa- tion of said CITY OF LODI in said Retirement System, a copy of said contract snd copies of the summary of major provisions of the proposed plan being attached hsreto, marked "Exhibit A, B, and 0" respectively, and by this reference made a part. hereof. Dated: march 16, 1966 T hereby certify that the foreeoine resolution_ wa — passed and adonted by the City -Council of the City of Lodi in regular meeting held March 16, 1966, by the following vote: AYES: Councilmen - BROWN, CTJLBERTSON, DOW, WALTON and KIrSTEN NOES: Councilmen - None ABSENT: Councilmen - None City Clerlsf'' :;BIT A CONTRACT BETWEEN UR MT IIIPLOIRES' RRIFIRRHERT 3I$T!I AND 41 CITY CODICIL OF THE CIT? OF LORI St/ itA In consideration of the covenants and agreement hereafter oontain.d and on the part sf bath parties to be kept and performed, Pablio Agency and Board hereby agree as follows: 1. 111 words and teras used herein which ars defined in the Stats limg►leyees' Retirement L *hail have the leaning as defined therein unless otherwise specifically provided. *Normal retirement age" shall mean age 60 for miscellaneous members and age 55 for local safety members. 2. Public Agency shall participate in the Stat. Employees' Retirement System from and after , 19making its employees as hereinafter provided, kers of said System snb3eet to all pro- visions of the State Employees' Retirement Law except such as apply only on election of $ oontracting agency and are not provided for Ruin end to all tents to said Lent hereafter enacted except such as by express provision thereof apply only an the election of contracting agencies. 3. Imploy.es of Ptublie Agency in the !olloming classes *hail become members of said Retirement System except such in seek such class as are excluded by lar or this agreement: a. Local firemen (herein referred to es looal safety members); b. Local policemen (herein referred to as local safety ! . , )l c. Employees other than local safetymembers (herein -referred to as miscellaneous members).. The following employees shall be excluded from membership in said Retirement Systems EXCLUDE SI.GCTIV8 O FICILLS 4. Assets heretofore acc:aliilatsd with respect to membersMid retired persons mal. under the lemma retirement system who are transferred to the State Employees' Retirement System shall be transferred to the State Employees' Retirement Systeme within four months after the effective date of this oontract and applied against the liability for prior service incurred hereunder. That portion et the assets so transferred which represents the accumulated contributions (plus interest thereon) reeluired of the employees under said local system shall be credited to the indirideel memberehip amt of each sash employee under the State Employees' Retirement System. S !, 4 7. Sri tfi lens' 4 if 5. OD 'ball be the fraction of find oo■peneatiou to be provided for each year of credited current ..wise as a adaaellao.00r member epos retirement at normal retirement age, subject, however, to the •odifi- @stioa set forth in Paragraph 6 beioer. 6► The fraction of final compensation specified in Paragraph 5 shall be reduced in then case of each member oboes position 3a , ., 1 by federal Social Security to 1/90 for application to the first per month of final oospensstion. 7. Benefits for miscellaneous members en account of each year of prior service shall be as provided in Section 21253, Got Code, except that the fraction of final compensation otherwise provided therein shall be reduced by 1/3 for application to the first $400 per south of final co pensation in tete case of each member whose position is covered by Federal Social Security. 0. Benefits for local safety members on account of prier service shall be 100% of the fraction of final motion for each year of current sees as determined for local safety members under said Retirement Law and this *entrant. 9. The retirement benefits payable on retirement for ordinary disability small not be affected by the modification provided in Paragraph 6 of this contract except that for the purposes of the liait on any such allowance imposed ender Section 21297, Government Code, allowances for retirement for service shall be oosuted scoording to the modified formula est out in Paragraph 6 of the contract. All other provisions of this contract shall be fully applioable to the computation of des upon retirement for disability. 10. Contributions for miscellaneous members shall be subject to Section 20601.5, C' ..dent . � �.ent Code, providing for a reduction in rates of contri- bution as it relates to the first $400 of monthly compensation and 100 percent of such rate as it applies to the remainder of the mthly compensation. Miscellaneous member', whose positions are excluded f>n Social Security rage shill contribute in accordance with motion 20601. 11. Benefits paid to pensioners and annuitants under the local system on the effective date of this contract shall be recalculated as of such date as authorised by Section 20520 of tbs Q.r ant code to conform with benefits applicable to persons retiring after the effective date of this contract except that no benefit which would have been payable under the continuation of the local system shall be reduced. 12. The following provisions of the State Employees' Retireeseat Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees' a. Sections 21251.1, 21251.14, and 21.253 (providing for a gnsranteed percentage of final, compensation for each year of current and prior service and a reduction in such percentage for the purpose of com- puting the portion of the benefit wbicb is related to the first Shoo of final compensation). 11, E,,,„ _., ,2 r iii ; b.filiation* 21252.4 sad 21252.45 (providing for a g srantad pereent- sde of final oeelpeneetion for each year of current service for local safety members and a reduction in such percentage for the purpose of oemputing tete portion of the benefit which 3s related to the first of final compensation). s. Section 20026e.01 (defining 'final ceepensationi on the basis of a period of three consecutive years). d. Section 21258(b) (providing a minimete:a retirement ailo anon of $720.00 wrier under certain conditions) . e. Section 21367.51 (providing a $400.00 death benefit upon death atter retirement). f. Section 20025 (providing for inclusion of compensation without limit in computations where compensation is a factor). g. Section 21365.5 (providing a montbli a13owaan in lieu of the basic death benefit for certain survivors of a member who dies in employment after goa1iffing for voluntary service retirement). h. Section 20605.5 (providing that the normal rats of contribution for those employees who were members of the Local Retirement System shall bo based on age at entry into said local aya tem) . i. Section 21361.5 (providing that years of service rendered as a mother of the Local Retirement System prior to the effective date of this contract shall be i:eludad in the computation of the basic death benefit provided in Section 21361 upon the death of any member who mss also a member of said local system). 13. Public Agency shall contributes to said Retirement System as follows: a. 6.346 percent of total salaries reported far members in each payroll reporting period until June 30, 2966 oar account of the liability for prior service befits less 0.523 percent of total salaries paid to sombers for each $100,000 of assets transferred to the State Employees, Retirement Systea to the extent such transferred assets exceed the accumulated ].meal system contributions of memebers transferred under ?aregrsph 4. b. 5.339 psredet of total salaries reported by Public Agency each payroll reporting period for its employees veto ars and hereafter become members of said Retirement System on account of the liability for current service benefits, provided that only salary earned as members of said System: shall bo included in said total salaries. c. A reasonable amount per inn., 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 of the periodical investigation and valuation required by law, presided that said amount .hall be determined on the basis at the Allamr of smployees of Peddle A1" !mgP mho are reported as members on the payroll covering J*n r: 1 of Teary or with respect to the first year of participations on the effective date of said n* d. d rrason.)1e amount as fined by tbs Board, p.ysble in one install- ment ss to occasions arises to corer carts of special valuations on account of employees of Public Agency, and costs of the periodi- cal investigetioa and valuation required by ]sr. 14. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of Vents .to the State E plo ee ! Retirement Lar, and on account of the experience under the Befit System, as deterained by the periodical, investigation and valuation required by said Retirementlass. 15. Contributions required of Public Agency and its employees shall be paid by public agency to the Retirement System within thirty doys after the end of the pariah to shy said oontrtioas refer. If more or bras than the erect amount of contribatioos is paid for n7 pee, pr adjustment shall be made in connection with seb- segment remittaacss, or ad juatments ©n aacount of errors in contri- butions required of any employee hey be made by direct cam payments between the Moyes and Board. Paym.nta by Public! Amy to Board may be made in the form of warrants, bask checks, baulk drafts, certified checks, money orders or cash. Witness our bards this day of BOARD OF ADMINISTRATION CITY COUNCIL STATE r RETIBEMSW1 SMIRK BT William E. Payne, Executive Offieer ThE ia 3! 4 ! Presiding O fi Attests Clerk EXHIBIT B SUMMARY OF MAJOR Pli)VISI0i8 1/90.1/60 at 60 Retirement Program Local Miscellaneous Members MEt4BIRSKIP Membership is compulsory for all employees, who are employed one --halt time or more., except those excluded under the contract. SERVICE notAmnriENT The earliest retirement age is 55; the normal retirement age is 60; and the compulsory retirement age is 70. An e-ixp1c r e may retire any time between these ages, 55 and 70, provided he meets the cdnizum requirement -s that he either hate more than $500.44 of accumulated contributions, or 20 years of service, or have attained the compulsory retirement age of 70. At normal. retirement age &? j the unmodified allowance is 1/90 of that portion of "final compensation" up to and including $400 per month and 1/60 of that portion of 'final compensation" as is in excess of $4002 for each year of credited service. If retirement is deferred beyond age 6, the percentages of "final compensation° for each year of service are increased actua-rially up to age 65 but not beyond. If retirement is earlier than age 60, the percentages of "final compensation" for each year of service are actuarially decreased. "Final compensation' is average ronth17 salary (full time rate) earned during that period of three consecutive yeas of highest earnings, excluding overtime oonn- pensation. A minimum service retirement allowa e of $60400 per month is guaranteed upon compulsory retire lent with credit for prior service, or upon retirement at age 65 with txenty years of service. DIUBILITT REIIREXEKT An employee becorzing disabled to the extent that he is incapable of performing his duties shall be eligible for disability retirement pr-ovided he has at least $500 of accu sulated contributions, .cs at least 10 years of service. The ronthly retirement allowance is 1,50% of "final coarpensation° for each ;rear of service, with a'snimts guarantee of one-third of final compensation for woet employees who have rendered at leastlO years of service. The disability retirement allowance shall under no circumstances exceed the service retirement allowance payable upon retirement for service a t age 60. DEATH BENEFITS The death benefit, there death occurs before retirement, consists of a refund of the ii,z..1,zA accumulated contributions (including interest earned), plus an ad- ditional benefit equal to six months' salary where he has been a for six years or more. For those who have been a member for less than six years, the additional benefit is ori month's salary for each year of membership. If death occurs after retirement a lump area of COQ will be paid, This amount will be in addition to any benefits Mich be paid from Social Security or any payments which might be' made under an optional retire ent benefit chosen by the member at his retirement. 1957 SURVIVOR RE { FI'Z' Employees who have at least 5 years of service and who are at least age 55 have further death protection under the 1957 Survivor Program. Should such an employee die before retirement, his surviving widow may elect to receive either the basic death benefit or a monthly income equal to one-half the Codified retirement allowance the employee was eligible for on the date of his death. The monthly inn -oras is payable until the widow's death or remarriage with a guarantee that she will receive at least as much as she would have received under the basic death benefit. TERMINATION OF DIPLOTI T Op -on termination of employment, en ealrployee may either leave his contributions with the System and receive, upon attaining retirement age, the retirement benefit he has earned, or he may withdraw his contributions (plus interest), thgs terminat- ing his membership in the System and r€}eeiving no retirement 'oensfit. Except, (1) a r*e ber with $500 or less in accumulated contributions and less than 20 years of service shall not have the privilege of leaving his contributions with the System, but shall automatically have his contributions, plus interest, refunded upon termina- tion of employment, and (2) a mecaber who is transferring to employment with another agency which is covered under the System shall not have the right of withdrawing his accumulated contributions. EMPLOYEE CONTRIBUTIONS Each raecaber makes monthly contributions to the System which are deducted gran his salary. The rate of contribution (percentage of pay) depends upon a member's aex and age (nearest birthday) on the date of becoming a member and varies from a minimum of 352% to a ma.ld.raus, of less than 11.56%. The eeployer also contributes tovard the cost of the benefits. The amount contributed by the employer for current service benefits will, on the average, exceed the cost to the employee. In addition, the employer bears the entire cost of prior service benefits. All contribution rates are subject to revision by the Board of Administration. EXHIBIT C $tit of iA.IO= PROVISIONS Local Safety Members - Wined One -Half Pay at 55 Retirement Program $sbership is compulsory for all employees, who are employed one --half time or more, except tee. excluded Stader the contrast. SWIGS g*TIHRICA T The earliest retirement age is 55; the normal retirement age is 55; and the cc Iso Miriam -at 410 is 65. d loeal safety member may retire any time after age 55 provided ha either has 4500 of accumulated contributions, or has attained the oppiptilsory retirement age of 65. The monthly imam is determined by age at retirement, years of credited serviee and "final mors aensatioo'. The latter term means the average monthly salary (excluding overtime) during the 36 coneecutivw highest paid mouths. The beide benefit formula is designed to provide an age 55 allovanse equal to 50% of 'stinal compensation° for all who eater safety service at age 35 or uader and con- tinue to be so employed until age 55. In order to coordinate the benefits from the State System with benefits from Social Security, the law provides that the portion of the Sate System benefit whichrelates to the first 4I&OO of monthly salary will be two-thirds et the full formula with the full forma* governing that portion of the befit which is earned by the excessof *final compensation" over $4400. Mathematically this is exactly the same as than the salary subject to retire- ment were reduced by 1133.33 for any member earning a month or more, Therefore, tablas and worksheets in this material present simplified computations based on "adjusted copsnsation" which produces results identical to the formula specified in the law. PTTZ An employee becoming disabled to the eatsat that he is idle of perform. tog his ditties shall be retired for disability* His disability will be either employment connected (industrial disability) or otherwise (nonindustrial disability). As employee oho becomes disabled while a member of Haien System for reasons arising out or bis employment, will be eligible for a liter income of tifty (50%) percent of his final compensation. If his disability is such that be is also entitled to a disability income from Social Security, the Mate System benefit will be reduced by the sant of its Social Security benefit. An employee becoming disabled for reasons not connected with his emaploymdeut shell be eligible for disability retirement provided he has at least MO of accumulated contributions or at lomat 10 years of service) such disability sUow- ance is equal to 1.57 of final compensation for each year of service, with a guarantee of 1/3 of such final compensation for most ampler'ss who have rendered at levet lA years of •ezwiee, The 'ord1narye disability retirement allowance shall under no circumstances exceed the service retirement allowance which would bocce a payable at age 55 if employment could be continued to that age. Th BRUM= Death Before Retirement Resale Death feaefit :This benefit is a refund of the member's ane mutated contributions plus tis mentos' salary provided be hos been a meatier for sir years or more. Per those who die before completing six years of dips the benefit is one month 1 salary for each year of membership plus reread of eentribtrtions. The eller, referred to is that earned during the year preluding death. Prior service does not count toward this benefit. Irrdustr4al Breath If death is service.cennected in the judges of the Industrial Accident Commission, a monthly income is paid to the widow for lifer (ar until remarriage) instead of the above beaeio death benefits however, if she is also eligible for survivor benefits frommi Social Security because of the member's death, the State systen benefit mill be seed hy the amount of such Socia Security eo long as Social Security benefit* are payable (usually until the youngest child reaches 18 need after the rt eiow reaches age 62) . The total, iac1w tng Social Security, would be 50% of 'final eaepensati+en•. If death was caused by external viols ce or physical force, the total benefit (including Social Security) could be increased to the following percentages of 'final mom. pensat lona ' so long as the widow lives and does not remarry: Widow with 3 or more children under IS 75% Widow with 2 children under 18 7 Widow with 1 child under 18 62 fttb Atm Seamed /he death benefit is 1100. This is in addition to soy remaining 'temporary annuity" installments and any benefits pysbie ander an option chosen st retirement. gl Survivor Desalt l p] ay.ss with 5 or more fears of service who have reached the minimum age for Beavis, retirement have further death protection under this item. Here the surviving widow can Bleat to receive either the basic death benefit or a monthly incomes equal to owe -half the unmodified ren• tiremest allowance the employee was eligible for an the date of his death. The monthly income lasts until the widow's death or remarriage with a grantee that the System will psy as such as under the basic death benefit. =swam* cr tan.0100111T [loon termination of employment, an employee may either leave flit ceetributions with the System and receive, open attaining retirement age, the retirement benefit he hes earned, or he waxy withdraw hie contributions (plus i z tsrest), thus, termit air. - Jag his membership in the System and receiring no retirement benefits. &wept, (1) a member with $500 or less in aacrae.ulated contributions end with leen than 20 years of service shall not have the privilege if leaving his contributions with the System, but shall automatically have his contributions, plus interest, refunded upon termination of employment and (2) a member who is transferring to employment with another agency which is covered wader the system shall not have the right of itthdrtiering his aesuesalated contributions. #E4LOT10 COVIILINTIONS gseh member makes monthly contributions to the System tech are deducted from his salary. The rate of contribution (percentage of pay) depends upon a member's sea, age at *fir into the agates and amount of service prior to the contract date. Such contributions, for male employees, with no prior service, currently raspe from a minimum of 5.20 of salary to a maximum of 12.3 of salary. The app also contributes Lewd the cost of the benefits. The amount contributed by the employer for current service retirement benefits will, on the average, exceed the cost to the employee. In addition, the employer bars the entire cost of prior service benefits, the industrial death and disability benefits. All contribution rates are subject to revision by the Hoard of Adainiatratios.