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HomeMy WebLinkAboutReso 4746-1967RESOLUTION NO. 4746 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE STATE EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO. WHEREAS, the State Employees' Retirement Law permits the participation of public agencies and their employees in the State Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said law; and WHEREAS, one of the steps required in the procedure is the adoption by the legislative body of the public agency of a resolution giving notice of its intention to approve an amend- ment to said contract, which resolution shall contain a summary of the changes proposed in said contract; and WHEREAS, the following is a summary of the proposed changes: 1. A monthly allowance shall be paid to certain survivors of Group A and safety members who die before retire- ment. 2. A monthly allowance shall be payable in lieu of the basic death benefit to survivors of a member who dies in employment after qualifying for voluntary service retirement. 3. Provides for age 50 (instead of 55) as the minimum voluntary service retirement age for local safety members with benefit payments commencing prior to age 55 subject to actuarial discount. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco gives, and it does hereby give notice of intention to approve an amendment to contract between said City Council and the Board of Administration of the State Employees' Retirement System, a copy of said amendment being attached hereto, marked "Exhibits A and B" and by this reference made a part hereof. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 2nd day of October , 196% by the following vote: AYES, COUNCILMEN Patrick E. Ahern, Frank J. Bertucelli, Emilio Cortesi, Andrew Rocca. and Guido J. Rozzi. NOES, " None. ABSENT, " None.' ATTEST :~ ~ City e EXHIBIT A AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRA- TION, STATE EMPLOYEES' RETIREMENT SYSTEM, AND THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO The Board of Administration, State Employees' Retirement System, hereinafter referred to as Board, and the City Council of the City of South San Francisco, hereinafter referred to as Public Agency, having entered into a contract under date of September 12, 1945, effective September 1, 1945, and as amended effective September 1, 1949, December 1, 1953, January 1, 1960, January 1, 1963, and February 1, 1967, which provides for par- ticipation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. The following paragraphs shall be added to said Contract: 5(c)(11) Section 21365.5 (providing a monthly allowance in and lieu of the basic death benefit for certain sur- 6(g)(9) vivors of a member who dies in employment after qualifying for voluntary service retirement). 5(c)(12) Section 21380-7 (providing for allowances for survivors of Group A and local safety members covered under the program upon death before retirement). Be 5(c)(13) 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). Paragraphs 7(a) and 7(b) shall be stricken from said contract and the following paragraphs substituted therefor: 7(a) With respect to miscellaneous members, the city shall contribute the following percentages of monthly salaries earned as miscellaneous members of said system: (1) 0.056 percent on account of the liability for prior service benefits. (2) 6.253 percent on account of the liability for current service benefits. (3) $5.00 per month for each member covered under the provisions of Section 21380-7 (SERS Sur- vivor Program). 7(b) With respect to local safety members, the city shall contribute the following percentages of monthly salaries earned as local safety members of said System: (1) 0.150 percent on account of the liability for prior service benefits. (2) 10.552 percent on account of the liability for current service benefits. 1. (Exhibit A) Ret. Form 702-1 (3) $5.00 per month for each member covered under the provisions of Section 21380-7 (SERS Survivor Program). C. This amendment shall be attached to said Contract and shall become effective of the 1st day of January , 19 68 . Witness our hands this 19 67 . 2nd day of October , BOARD OF ADMINISTRATION STATE EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO Mayor/ City Clerk 2. (Exhibit A) Ret. Form 702-2 Benefits to Employees Under SERS SURVIVOR BEA'~EFITS (Benefits provided by SeCtions 21380-21387 of the Retirement Law) BEk~FITS Survivors of members who elect coverage under the SERS survivor program and w~ose death occurs before retirement will receive a monthly life income as follows: Widow and two or more dependent children or Three or more dependent children~ alone Widow and one dependent child or Two dependent children, alone Widow, alone, age 62 (widower age 65) or One dependent child, alone If there is no widow or dependent child, then to each dependent parent (mother 62, father 65) $250 $180 $ 90 $ 90 Conditions: 1. A dependent child is one under the age of 18 and unmarried, or a disabled child of any age who has been continuously disabled since age l§. 2. A widow ceases to be eligible for a benefit upon her remarriage. 5 A widower will be eligible for a benefit the same as a widow orovided he was dependent upon the deceased member for at least one-half of his support. 5 The basic death benefit currently included in your retirement program pro- vides that should a member die prior to his retirement, his beneficiary would be paid the member's accmnulated contributions plus an additional amount equal to one-month's salary for each year of service, up to a maximum of six months. The above survivor benefits will be payable in addition to any basic death benefit the survivor may be entitled to receive. If a member is covered under both the S~S 1959 Survivor Benefit described above and the survivor benefits as provided in Section 21365.5 (1957 Survivors Benefit) of the Retirement Law, the survivor will be paid both benefits. Ret. Form 1171-1 (10/66) 209 (Exhibit B to Amendment to 1. Contract between Board of Administration, SERS, and City of S.S.F.) COST TO THE ~4PLOYEE Each employee will contribute ~i,2.00 a month in addition to his normal retire- ment contributions. He will continue to pay this additional amount until either termination of employment or retirement and under no circumstances will they be refundable. EFFECTIVE DATE These survivor benefits will become effective on January l, 1968 (Date). All present members of the System will be given the opportunity by written ballot to select this survivor coverage. Persons who choose coverage will remain covered until they terminate their employment or retire, iT IS dOT NOW P'.;OVIDED that persons, who do not choose coverage will be allowed to choose coverage at a later date. For agencies not covered under OASDI all future employees would be mandatorily covered under this program. For ager~cies who are covered under OASDI all future employees are mandatorily covered under OASDI and, therefore, are not eligible for the SERS survivor benefits. EXAMPLE Under the SERS survivor program, if a member passes away sefore retirement leaving a ~dow and four children, the widow would receive a .~o~thly income of ~2~O until such time as the three oldest children have passed age 18 (so zhat she now only has one child under the age of 18) at which time her benefit would be reduced to ~180. The ~180 would continue to be oaid until the lasv child passes ~he age of 18 at which time the payment would cease until the widow reaches the age of 62. She would then receive $90 a month for the remainder of her lifeV~me. T~e widow ceases to be eligible for her benefit when she remarries although benefits would continue to any remaining children under the age of 18. Ret. Form 1171-2 (8/66) 200 (Exhibit B to Amendment 2.~ to Contract between SERS and City of S.S.F.) Benefits to Employees Under SERS SURViVOR BE~iEFITS (Benefits provided by Sections 21330-21387 of the Retirement Law) BEFITS Survivors of members who elect coverage under the SERS survivor program and whose death occurs before retirement will receive a monthly life income as follows: Widow and two or more dependent children or Three or more dependent children, alone $25o Widow and one dependent child or Two dependent children, alone Widow, alone, age 62 (~*ldower age 65) or One dependent child, alone If there is no widow or dependent child, then to each dependent parent (mother 62, father 65) $180 $ 90 $ 90 Conditions: 1. A dependent child is one under the age of 18 and unmarried, or a disabled child of any age who has been continuously disabled since age 18. 2. A widow ceases to be eligible for a benefit upon her remarriage. 0 A widower will be eligible for a benefit the same as a widow orovided he was dependent upon the deceased member for at least one-half of his support. 5 The basic death benefit currently included in your retirement program pro- vides that should a member die prior to his retirement, his beneficiary would be paid the memberts acc~nulated contributions plus an additional amount equal to one-month's salary for each year of service, up to a maximum of six months. The above survivor benefits will be payable in addition to any basic death benefit the survivor may be entitled to receive. If a member is covered under both the SfL~S 1959 Survivor Benefit described above and the survivor benefits as 'orovided in Section 21365.5 (1957 Survivors Benefit) of the Retirement Law, the survivor will be paid both benefits. Ret. Form 1171-1 (10/66) 200 (Exhibit B to Amendment to Contract between SERS and City of S.S.F.) COST TO THE ~,~LOYEE Each employee will contribute ~i,2.00 a month in addition to his normal retire- ment contributions. He will continue to pay this additional amount until either termination of employment or retirement and under no circumstances will they be refundable. EFFZCTIV£ DATE These survivor benefits will become effective on January 1, 1968 (Date). All present members of the System will be given the opportunity by written ballot to select this survivor coverage. Persons who choose coverage will remain covered until they terminate their employment or retire, iT IS ~OT NOW P ~OVIDED that persons, who do not choose coverage will be allowed to choose coverage at a later date. For agencies not covered under OASDI all future employees would be mandatorily covered under this program. For agencies who are covered under OASDI all future employees are mandatorily covered under OASDI and, therefore, are no~ eligible for the SERS survivor benefits. EXAMPLE Under the SERS survivor program, if a member passes away before retirement leaving a widow and four children, the widow would receive a ~%onvhiy income of until such time as the three oldest children have passed age !6 (so that she now only has one child under the age of 18) at which time her benefit would be reduced to $180. The ~180 would continue to be paid until the last child oasses the age of 18 at which time the payment would cease until the widow reaches the age of 62. She would then receive $90 a month for the remainder of her lifetime. The widow ceases to be eligible for her benefit when she remarries although benefits would continue to any remaining children under the age of 18. Ret. Form 1171-2 (8/66) 20O (Exhibit B to Amendment to Contract between SERS and City of S.S.F.) e