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HomeMy WebLinkAboutReso 111-1977RESOLUTION NO. 111-77 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEESt RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject them- selves and their employees to amendments to said law; and WHEREAS, one of the steps in the procedure to amend this contract is the adoption by the legislative body of the public .agency of a resolu- tion giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: 1. Provides 2% at 50 benefits for safety members. 2. Provides service credit under the provisions of Chapter 830, Statutes 1976 for miscellaneous members. NOW, THEREFORE, BE IT RESOLVED, that the governing body of the above agency gives, and it does hereby give notice of intention to approve an amendment to the contract between the said governing body and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO City Clerk (Title) August': 3, 1977 (Date adopted and approved) Ret. Form 122 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 3rd day of August 19' 77 , by the following vote: AYES, COUNCILMEN William A. Borba, Emanuele N. Damonte, Terry J. Mirri and Leo Padreddii NOES, " Richard A. Battaglia ABSENT, " None ATTE S T: Clerk' I1~[ '1~ IIlill il II~r 1:1 'Exhibit to Resolution No. 111-77 A~ T~ CITY COUNCI~ OF. THE CITY OF SOUTH SAN FRANCISCO The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OP 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 effectiv8 September 1, 1949, December 1, 1953, January 1, 1960, January 1, 1963, February 1, 1967, January 1, 1968, January 1, 1969, November 1, 1973, April 19, 1974, and January 21, 1977, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs I through 8 are hereby stricken from said contract as executed effective November 1, 1973, and are hereby replaced by the following paragraphs numbered 1 through 10 inclusive: 5 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 miscellaneous members and age 50 for local safety members. 5 Public Agency shall participate in the Public Employees' Retirement System from and after September 1, 1945, 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 such as by express provision thereof apply only on the election of contracting agencies. .Employees of Public Agency in the following classes and groups shall become members of said Retirement System except such in each such class and group as are excluded by law or this agreement: ' a. ~,ocal 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). In addition to the employees excluded from membership by said Retirement Law, the following employees ~hnll not become members of the Ret~remen~ System: PERSONS WHO ARE COMPENSATED ON AN HGJRLY BASIS WHO ARE EMPLOYED JANUARY 1, 1965 Ret. l~orm 702-1 . ~~%~ Exhibit to Resolution No. 111-77 S[~A~RY OF MAJOR PROVISIONS Local Safety Members - 2% at 50 Retirement Program MEMBERSHIP Compulsory for all employees except those specifically excluded. Exclusions include; (1) special contract exclusions; (2) employees who work less than half time; (3) employees who work half time or more but who will work six months or less; (&) temporary or seasonal full-time employees who will work six months or less. SERVICE RETIRE~I~ The earliest retirement age is 50; the normal retirement age is 50; and the compulsory retirement age is 60. A local safety member may retire any time after age 50 provided he either has at least 5 years of service or has attained the compulsory retirement age. The monthly income is determined by age at retirement, years of credited service, and "final compensation". The latter term means the average monthly salary (excluding overtime) earned during the final 36 consecutive months unless member specifically request another 36 consecutive month period. The unmodified life allowance will be "2% of final compensation" for each year of safety service upon retirement age 50 with increasing percentages to a maximum of 2.7% at retirement at age 55. Service retirement benefit is subject to .a~ limitation of 75% of final compensation. A minimum service retirement allowance of $100 per month is guaranteed upon compulsory retirement with credit for prior service. DISABILITY RETIR~E~ An employee becoming disabled to the extent that he is incapable of performing his daties shall be retired for disability. His disability will be either employment connected (industrial disability) or otherwise (nonindustrial disability). An employee who becomes disabled while a member of this System for reasons arising out of his employment, will be eligible for a life income of fifty (50~.) percent of his final compensation. If his disability is such that he is also, entitled to a disability income from Social Security,, the State System benefit will be reduced by the amount of his Social Security benefit. An employee who becomes disabled while a member of PERS for reasons arising out of his employment, will be eligible for a life income of fifty (50%) percent of his final compensation. If his disability is such that he is also entitled to a disability income from Social S~curity, the PERS benefit will be reduced by the amount of his Social Sec. urity benefit. An employee becoming disabled for reasons not connected with his employment shall be eligible for disability retirement provided he has at least 5 years of service. This disability allowance is equal to 1.8% of final compensation for each year of service, with a guarantee of 1/3 of final compensation for most employees who have rendered at least l0 years of service. The "ordinary dis- ability" retirement allowance shall under no circumstances exceed the service retirement allowance which would become payable to age 60 if employment could be continued to that age. DEATH BENEFITS (1) Death Before Retirement Basic Death Benefit: This benefit is a refund of the member's accumulated contributions plus six months' salary provided he was a member for six years or more. For those who die before completing six years of membership, the benefit is one month's salary for each year of membership plus refund of contributions. The salary referred to is that earned during the year preceding death. Prior service does not count toward this benefit. Industrial Death Benefit: If death is service-connected in the judgment of the Industrial Accident Commission, a monthly income is paid to the spouse for life (or until remarriage) instead of the above basic death benefit. However, if the spouse is also eligible for survivor benefits from Social Security benefits are payable (usually until the youngest child reaches 18). The total, including Social Security, would be 50% of "final compensation". If death was caused by external violence or physical force, the total benefit (including Social Security) would be increased to the following percentages of "final compensation" so long as the spouse lives and does not remarry: Spouse with 3 or more children under 18' 75% Spouse with 2 children under 18 70% Spouse with 1 child under 18 62~ 1957 Survivor Benefit: Members with 5 or more years of service who have reached the minimum age for service retirement have further death protection under this item. Here the surviving spouse can elect .to receive either the Basic Death Benefit or monthly income equal to one-half the unmodified retirement allowance the member was eligible for on the date of his death. The monthly income lasts until the spouse's death or remarriage, with a guarantee that PERS will pay at least as much as is entitled under the Basic Death Benefit. ' 1959 Survivor Benefit: A monthly allowance shall be paid to certain survivors of a member who dies before retirement. (2) Death After Retirement: The death benefit is $500. This is in addition to any remaining "temporary annuity" installments and any benefits payable under an option chose at retirement. Death After Retirement One-half Continuance provides upon the death of a local safety member who has retired for service, or disability, for the continuance of one-half the retirement allowance to certain survivors. TEPJ,4INATION OF ~2~PLOt~NT UPOn termination of employment, a member with at least 5 years of service may either leave his contributions with PERS and receive, upon attaining retirement age, the retirement benefit he has earned, or he may withdraw his contributions (plus interest), thus terminating his membership in the System and receiving no retirement benefits. Exceptions: (1) a member with less than 5 years of service shall Dot.. ~ve the privilege of 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 under the System shall not have the right of withdrawing his accumulated contributions. . ~ CO~IBUTIONS Each member makes monthly contributions to the System which are deducted from his salary. The rate of contribution (percentage of gross pay) is 9%. The employer also contributes toward 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 bears the entire cost of prior service benefits. All employer contribution rates are subject to revision bythe Board of Administration.