HomeMy WebLinkAboutReso 2788-1959370
RESOLUTION OF INTENTION NO. 2788
TO APPROVE AN AMENDMENT TO THE
CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE STATE E~PLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL
OF THE CITY OF SOUTH SAN FRANCISCO
WHEREAS, the State E~ployees' 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, Section 21702 of the Government Code provides that a contract between a public
agency and the Board of Administration may be amended to modify benefits and
adjust contributions if the California State Social Security Agreement of
March 9, 1951, is modified to include employees of the public agency in pos-
itions covered b~ the System; and
WHEREAS, Federal and State law permit the present members (other than policemen and fire-
men) of a retirement system to choose individually whether they wish to be
covered by Federal Old-Age, Survivors, and Disability Insurance; and
WHEREAS, it is the intention of this governing body to allow employees of this agency
to exercise such choice and, further, to provide an appropriately modified pro-
gram of retirement system benefits and contributions for such employees as elect
to be covered by Federal Old-Age, Survivors, and Disability Insurance; and
WHEREAS, it is required that an election be held among members of the system before mem-
bers may be given such choice; and
WHEREAS, one step required in procedures for contract amendment is the adoption by the
governing body of a public agency of a Resolution of Intention giving notice of
intention to amend its contract with the Board of Administration, which Resolu-
tion shall contain a summary of-the major changes to be made in the retirement
plan; and
WHEREAS, a summary of the major changes to be accomplished by this amendment is attached;
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 amend its contract between
said City Council and the Board of Administration of the State Employees' Retire-
ment System to provide for a modification of benefits and adjustment of rates,
a summary of the major provisions of the proposed plan, and a copy of said amend-
ment being attached hereto marked "Exhibits A and B", respectively, and by this
reference made a part hereof; and be it further
RESOLVED, that written explanatory statements be furnished to each employee who is or may
become a retirement system member affected by these changes, which statements
shall contain a summary of the proposed changes and a notice that an election on
the proposed changes and on the question whether members shall be permitted to
choose individually whether to be covered under O.A.S.D.I., will be held among
eligible employees; and be it further
RESOLVED, that such election is hereby authorized to be conducted not less than fifteen
nor more than thirty days after issuance of such explanatory statements, and that
the City Clerk is hereby designated and appOinted to conduct such election in
accordance with law, regulations, and this resolution, including the issUance of
proper explanatory statements and notices to eligible employ~ees.
CITY COUNCIL OF THE
CITY OF SOUTH SAN FRANCISCO
agency and the Board of Administration may be amended to modify benefits and
adjust contributions if the California State Social Security Agreement of
March 9, 1951, is modified to include employees of the public agency in pos-
itions covered b~ the System; and
WHEREAS, Federal and State law permit the present members (other than policemen and fire-
men) of a retirement system to choose individually whether they wish to be
covered by Federal Old-Age, Survivors, and Disability Insurance; and
WHEREAS, it is the intention of this governing body to allow employees of this agency
to exercise such choice and, further, to provide an appropriately modified pro-
gram of retirement system benefits and contributions for such employees as elect
to be covered by Federal Old-Age, Survivors, and Disability Insurance; and
WHEREAS, it is required that an election be held among members of the system before mem-
bers may be given such choice; and
WHEREAS, one step required in procedures for contraot amendment is the adoption by the
governing body of a public agency of a Resolution of Intention giving notice of
intention to amend its contract with the Board of Administrat~on, which Resolu-
tion shall contain a summary of .the major changes to be made in the retirement
plan; and
WHEREAS, a summary of the major changes to be accomplished by this amendment is attached;
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 amend its contract between
said City Council and the Board of Administration of the State Employees' Retire-
ment System to provide for a modification of benefits and adjustment of rates,
a summary of the major provisions of the proposed plan, and a copy of said amend-
ment being attached hereto marked "Exhibits A and B", respectively, and bY this
reference made a part hereof; and be it further
o
RESOLVED, that written explanatory statements be furnished to each employee who is or may
become a retirement system member affected by these changes, which statements
shall contain a summary of the proposed changes and a notice that an election on
the proposed changes and on the question whether members shall be permitted to
choose individually whether to be covered under O.A.S.D.I., will be held among
eligible employees; and be it further
RESOLVED, that such election is hereby authorized to be conducted not less than fifteen
nor more than thirty days after issuance of such explanatory statements, and that
the City Clerk is hereby designated and appOinted to conduct such election in
accordance with law, regulations, and this resolution, including the issuance of
proper explanatory statements and notices to eligible employees.
CITY COUNCIL OF THE
CITY OF SOUTH SAN FRANCISCO
ANDREW ROCCA
MAYOR
I hereby certify that the foregoing resolution was regularly introduced and
adopted by the City Council of the City of South Sa.n Francisco at a regular
meeting held on the 18th day of May, 1959, by the following vote:
Ae
AYES,
NOES, None
ABSENT, '~ , None
Councilmen Andrew Rocca, G. J. Rozzi,.Leo J. Ryan, Emilio.Cortesi and.
Patrick E. Ahern
.......... EXHIBXT'A ' .....
SUMMARY OF MAJOK PRoVisIONs OF
~*~' ~THE P~POS~D KETI~EMENT SYSTEM
Miscellaneous member~ of the retirement system shall'be divided into two groups as
follows:
Group A shall consist of those members who, on division date, do not elect to be
covered by Federal Old-Age, Survivors, and Disability Insurance (OASDI);
Group B shall consist of:
All members who choose to be covered by Federal Old-Age, Survivors, and
Disability Insurance;
All employees who are not miscellaneous members on the date the retire-
ment system is divided, but who become miscellaneous members thereafter;
All Group A members who terminate and re-enter employment as miscellaneous
members; and
4. All future employees who become miscellaneous members.
The effective date of membership in Group B shall be January 1, 1956, or the date of
employment as a miscellaneous member, whichever is later.
RESOLUTION NO. 2788 - EXHIBIT A - (CONT'D)
Benefits for local safety and miscellaneous Group A members shall not be changed
by this amenchnent nor shall there be any change in the benefits of miscellaneous
Group B members on account of service prior to the effectivity of membership.in the
Group B classification.
Benefits earned and rates of contribution on account of service as a Group B member
after the effective date of membership in Group B shall be changed as follows:'"
1/60 shall be the fraction of final compe~sation to be provided for each year
of credited service as a miscellaneous Group B member upon retirement at normal
retirement age except that such fraction of final compensation shall be reduced
as to service in any period after January 1, 1956, which was also covered under
OASDI to 1/90 for application to that part of final compensation which does not
exceed the monthly equivalent of the maximum annual amount included in "wages"
under Section 209, Social Security Act, during such period, it being recognized
that such maximum may be changed from time to time by amenchnents to said Social
Security Act and intended that any such change shall not affect the amount of the
retirement allowance based on service'during any period prior to the date of such
change.
e
Any Group B member retiring for service before age 65 who is fully insured under
Federal Old-Age, Survivors, and Disability Insurance may elect to have the
actuarial equivalent of his unmodified service retirement allowance paid in two
parts as follows:
A temporary annuity which shall not exceed the primary Social Security
benefit which, it is anticipated the member will be entitled to receive at
age 65, plus
A life income such as may be provided by the remaining actuarial value of
his service retirement allowanceJ
3. Contributions to be made by miscellaneous Group B members with respect to service
rendered after the effective date of this amenchnent shall be at two-thirds the
rate provided pursuant to Section 20601, Goverrenent Code, as it relates to that
part of his monthly compensation which does not exceed the monthly equivalent of
the maximum annual amount included in "wages" under Section 209, Social Security
Act, it being recognized that such maximum may be changed from time to time by
amendment to said Social Security Act and 100 per cent of such rate as it applies
to the remainder of his monthly compensation. (Retroactive employee OASDI con-
tributions of Group B members shall be paid during the retroactive period. If
such surplus Retirement System contri~tionsqshould, n~ be sufficient to fully cove~
the retroactive OASDI contributions, ~ne emp£oyee sna~ be bi~ed f~r ~e difference.)
4. Benefits payable for death and disability shall not be affected or modified by modi.
fications in the retirement allowance payable upon retirement for service.
EXHIBIT B
AMENDMENT TO CONTI~ACT BETWEEN THE BOARD
OF ADMINISTRATION - STATE EI~PLOYEES'
RETIREMENT SYSTE~ AND THE CITY COUNCIL OF
THE CITY OF SOUTH SAN FRANCISCO
The Board of Ad~inistration, 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, and December 1,
1953, which provides for participation of Public Agency in said System,'Board and Public
Agency hereby agree as follows:
Wherever in said agreement the word "City" appears, the term "Public Agency" is
hereby substituted.
Bo
The following phrase is added to the sentence which constitutes Paragraph Number
of said agreement:
',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."
Paragraphs 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15 are hereby stricken
from said contract as executed effective September 1, 1945, and as amended effec-
tive September 1, 1949, and December 1, 1953, and are hereby replaced by the
following paragraphs numbered 3 through, 9 inclusive.:
E~ployees 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. Local Firemen (herein referred to as local safety members);
Local Policemen (herein referred to as local safety members);
E~ployees other than local safety members whose positions are not sub-
ject to Federal SoCial Security coverage (herein referred to as
miscellaneous Group A members);
Employees other than local safety members who~e positions are subject
2o Federal Social Security coverage (herein referred to as Group B
members),
RESOLUTION NO. 2788 - EXHIBIT B (CONT'D)
In addition to the employees excluded from membership by said Retire-
ment Law, the following employees shall not become members of the
Retirement System:
NO ADDITIONAL EXCLUSIONS
All words and terms used herein which are defined in the State Employees'
Retirement Law shall have the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age" shall mean age 60 for mis-
cellaneous members in Group A, age 60 for miscellaneous members in Group B,
and age 55 for local safety members. "OASDI" shall mean Old-Age, Survivors,
and Disability Insurance provisions of the Social Security Act.
The following provisions shall apply to local safety and miscellaneous
Group A members only: ·
1/60 shall be the fraction of final compensation to be provided for
each year of credited current service as a miscellaneous Group A mem-
ber upon retirement at normal retirement age.
Benefits on account of each year of prior service shall be 100 per cent
of the fraction of final compensation provided under the Law and this
contract for each year of current service upon retirement for service.
The following provisions of the State Employees' Retirement Law which
apply only upon election of a contracting agency shall apply:
(1) Section 21251.1 (providing for a guaranteed percentage of final
compensation for each year of current service as a miscellaneous
Group A member).
(2) Section 21252.4 (providing for a guaranteed percentage of final
compensation for each year of current service as a local safety
member).
(3)
Section 20024.01 (defining 'final compensation" on the basis of
a period of three consecutive years)·
(4)
Section 21258(b) (providing a minimum retirement allowance of
$720.00 per year subject to certain conditions).
(5)
Section 21367.51 (providing a $400.00 death benefit upon death
after retirement).
(6)
Section 20025 (providing for ~clusion of compensation without
limit in computations in which compensation is a factor).
(7)
Section 21251.3 (providing for the recalculation of allowances to
persons retired prior to December 1, 1953, for time commencing on
December 1, 1953, in accordance with this contract as amended on
December 1, 1953, provided that no allowances are to be decreased
by such recalculation· "Final compensation" for such recalculation
shall be determined in accordance with Section 20024 instead of
Section 20024.01).
The following provisions shall apply to miscellaneous Group B members only:
1/60 shall be the fraction of final compensation to be provided upon
retirement at normal retirement age for each cre~ted.year of current
service subject to the modification set forth in subparagraph c. below.
be
Benefits on account of each year of prior service shall be 100 per cent
of the fraction of final compensation provided under the Law and this
contract for current service benefits earned by service at the date of
membership.
The fraction of final compensation specified in subparagraph a. above
shall be reduced as to service in any period after January 1, 1956, which
was also covered under OASDI to 1/90 for application to that part of
final compensation which does not exceed the monthly equivalent of the
maximum annual amount included in "wages" under Section 209, Social
Security Act, during such period, it being recognized that such maxi-
mum may be changed from time to time by amendments to said Social Secur-
ity Act and intended that any Such change'shall not affect the amount
of the retirement allowance based on service during any period prior
to the date of such change.
de
Any miscellaneous member who, upon retir~ment for service before age
65, ~ fully insured under Federal Old-Age, Survivors, and Disability
Insurance may elect to receive the actuarial equivalent of his
modified service retirement allowance in the form of an increased
monthly income until he reaches age 65, and a reduced income there-
after in accordance with Government Code, Section 21703.
The retirement benefits payable upon retirement for ordinary disability
shall not be affected by paragraph 6.c. of this contract as amended and
for the purposes of the limit on any such allowance imposed under Section
21297, Government Code, allowances for retirement for service shall be
computed according to the formula set out in paragraph 6.a. of the con-
tract as amended both as to service before and after the effectivity of
membership in the Group B classification. All other provisions of this
amendment shall be fully applicable to the computation of allowances
upon retirement for disability· ~
37
RESOLUTION 2788 - EXHIBIT B (CONT'D)
6. (Cont'd)
Contributions to be made by miscellaneous Group B members with respect to
service rendered after the effective date of this amendment shall be at two-
thirds the rate provided pursuant to Section 20601, Government Code, as it
relates to that part of his monthly compensation which does not exceed the
monthly equivalent of the maximum annual amount included in "wages" under
Section 209, Social Security Act, it being recognized that such maximum may be
Cbar~d from time to time by amenc~ent to said .Social Security Act and 100
per cent of such rate as it applies to the remainder of his monthly compen-
sation.
The following provisions of the state Employees' Retirement Law which ,apply
only upon election of a contracting agency shall apply:
(1)
Section 21251.1 (providing for a guaranteed percentage of final compen-
sation for each year of current service as a miscellaneous member).
(2)
Section 20024.01 (defining 'Final Compensation" on the basis of a period
of three consecutive years).
(3)
Section 21258(b) (providing a minimum retirement allowance of $720.00
per year)
(4). Section 21367.51 (providing a $400.00 death benefit upon death after
retirement).
(5)
Section 20025 (providing for inclusion of compensation without limit in
computations in which compensation is a factor).
7. Public Agency shall contribute to said Retirement System as follows:
ae
per cent of total salaries each month for 20 years,
less the years elapsed between the effective date of the contract and the
effective date of this amendment, on account of the liability for prior service
be
per cent of total salaries paid by Public Agency each
month to its employees who are and hereafter become members of said Retirement
System, provided that only salary earned as members of said System shall be
included in said total salaries.
A reasonable amount Per annum, as fixed by Board to cover the costs of ad~in-
istering said System as it affects the employees of Public Agency, not includ-
ing the costs of special valuations or of the periodical investigation and
valuation required by law, provided that said amount shall be determined on
the basis of the number of employees of Public Agency who are members on July 1
of the respective fiscal years, or with respect to the first year of partici-
pation, on the effective date of said participation.
A reasonable amount as fixed by the Board, payable in one installment as the
occasions arise, to cover costs of special valuations on account of employees
of Public Agency, and costs of the periodical investigation and valuation
required by law.
Se
Contributions required of Public Agency and its employees shall be subject to ad-
justment by Board on account of amend~ants, to the State 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.
Contributions required of Public Agency and its employees shall be paid by Public
Agency to the Retirement System within thirty days after the end of the per-
iod to which said contributions refer. If more or less than the correct amount
of contribution is paid for any period, proper adjustment shall be made in con-.
necti0n with subsequent remittances, or adjustments on account of errors in con-
tributions required of any employee may be made by direct cash payments between
the employee and Board. Payments by Public Agency to'Board may'be made in the
form of warrants, bank checks, bank drafts, Certified checks, money orders, or
cash.
This amen~ent shall be attached to said contract and shall become effective On the
first day of the month during which the Federal Control date, or in the absence of
a Federal Control, the Federal Approval date falls.
Witness our hands this
day of
BOARD OF ADMINISTRATION
STATE EMPLOYEES' RETIREMENT SYSTE~
(Na~e of Governing Body)
BY
William E. Payne, Executive Officer
OF THE
BY
(Name of l~ublic Agency)
Presiding Officer
Attest:
Clerk
**** ** ** ** ** **
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by
the City Council of the City of South San Francisco on ~ay 18, 1959, appearing at Page 397,
¥olume 9 of the ~inutes of the City Council.
ARTHUR A. RODONDI
CITY CLERK '~