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HomeMy WebLinkAbout78-32 - Contract PERS, Retirement SystemRESOLUTION NO. 78-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, TO APPROVE A CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUB- LIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF COSTA MESA. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the Public Employees' Retirement Law permits the par- ticipation of public agencies in the Public Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and WHEREAS, one of the steps required in the 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 Adminis- tration, which resolution shall contain a summary of the major provi- sions of the proposed Retirement Plan; and WHEREAS, attached is a summary of the major provisions of the proposed plan; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Costa Mesa, who is the Governing Body of the above Agency, does hereby give notice of intention to approve a contract between said Governing Body and the Board of Administration of the Public Employees' Retirement System, providing for participation of said Agency and certain of its employees in said Retirement System, a copy of said contract and a copy of the summary of the major provisions of the proposed plan being attached hereto, as an "Exhibit", and by this reference made a part hereof. PASSED AND ADOPTED this 6th day of March, 1978. ATTEST: City Clerk of the City of sta MesaMa or of the City of Mesa STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. 78-32 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof, held on the 6th day of March, 1978. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 7th day of March, 1978. _ p City Clerk and ex -officio Clerk o he City Council of the City of Costa esa f J CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF COSTA MESA In consideration of the covenants and agreement hereafter contained and on the part of both parties to be kept and performed, the governing body of above public agency, hereafter referred to as "Public Agency", and the Board of Administration, Public Employees' Retirement System, hereafter referred to as "Board", hereby agree as follows: 1. 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. 2. Public Agency shall participate in the Public Employees' Retirement System from and after , 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 provisions thereof apply only on the election of contracting agencies. 3. 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. Employees other than local safety members (herein re- ferred to as miscellaneous members). In addition to the classes of employees excluded from member- ship by said Retirement Law, the following classes of em- ployees shall not become members of said Retirement System: NO ADDITIONAL EXCLUSIONS 4. The fraction of final compensation to be provided for each year of credited prior and current service as a miscellaneous member shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60). 5. The following additional provisions of the Public Employees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Section 20024.2 (defining "final compensation" on the basis of average compensation earnable during the year immediately preceding retirement or any other one year period elected by the member). b. Section 20862.8 (providing service credit at retirement for unused sick leave). 6. Public Agency, in accordance with Section 20759.1, Government Code, shall not be considered an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law. Contribu- tions of the Public Agency shall be fixed and determined as provided in Section 20759, Government Code, and such con- tributions hereafter made shall be held by the Board as provided in Section 20759, Government Code. EXHIBIT ONLY for Resolution No. 78-32 7. Public Agency shall contribute to said Retirement. System as follows: a. With respect to miscellaneous members, the agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said Retirement System: (1) 2.558 percent until June 30, 2000, on account of the liability for prior service benefits. (2) 7.758 percent on account of the liability for current service benefits. b. A reasonable amount per annum, as fixed by the 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 in- vestigation and valuations required by law. C. A reasonable amount as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodical investigation and valuations required by law. 8. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amend- ments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodical investigation and valuation required by said Retirement Law. 9. 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 period to which said con- tributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, or adjustments on account of errors in contributions required of any employee may be made by direct cash payments between the employee and the 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. Witness our hands this day of , 19 BOARD OF ADMINISTRATION CITY COUNCIL OF THE CITY PUBLIC EMPLOYEES' RETIREMENT OF COSTA MESA SYSTEM Carl J. Blechinger, Presiding Officer Executive Officer Approved as to form: Attest: Legal Office, PERS Clerk EXHIBIT ONLY .for Resolution No. 78-32 (Continued) SUMMARY OF MAJOR PROVISIONS 2% at 60 (1/50) Retirement Program Local Miscellaneous Members 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; (4) temporary or seasonal full-time employees who will work six months or less. SERVICE RETIREMENT The earliest retirement age is 50; the normal retirement age is 60; and the compulsory retirement age is 67. An employee may retire any time between these ages, 50 and 67, provided he meets the minimum requirements that he either have 5 years of service or have attained the compulsory retirement age of 67. The monthly income is determined by age at retirement, years of credited service, and "final compensation". The basic benefit will be 2% of "final compensation for each year of credited service upon re- tirement at age 60. If retirement is deferred beyond age 60, the percentages of "final compensation" for each year of service are in- creased up to age 63 but not beyond. If retirement is earlier than age 60 the percentages of "final compensation" for each year of service are decreased. "Final compensation" is average monthly salary (full time rate excluding overtime) earned during the final 12 consecutive months unless member specifically requests another 12 consecutive month period. A minimum service retirement allowance of $100 per month is guar- anteed upon compulsory retirement with credit for prior service. DISABILITY RETIREMENT An employee becoming disabled to the extent that he is incapable of performing his duties shall be eligible for disability retirement pro- vided he has at least 5 years of service. The monthly retirement allowance is 1.80% of "final compensation" for each year of service, with a minimum guarantee of one-third of "final compensation" for most employees who have rendered at least 10 years of service, the disability retirement allowance shall under no circumstances exceed the service retirement allowance payable upon retirement for service at age 60 if employment could be continued to that age. CREDIT FOR UNUSED SICK LEAVE Credit is provided at retirement for unused sick leave. DEATH BENEFITS Death Before Retirement Basic Death Benefit: This benefit is a refund of the memb- ber's accumulated contributions plus six months' salary provided he has been 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. 1957 Survivor Benefit: Employees 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 EXHIBIT ONLY for Resolution No. 78-32 (Continued) basic death benefit or a monthly income equal to one-half the unmodified retirement allowance the employee was eligible for on the date of his death. The monthly income last until the spouse's death or remarriage with a guarantee that the System will pay as much under the basic death benefit. Death After Retirement The death benefit is $500 if death occurs after retirement. This amount will be in addition to any payment which might be made under an optional retirement benefit chosen by the member at his retirement. TERMINATION OF EMPLOYMENT Upon termination of employment, an employee with 5 or more years of service 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), thus, terminating his membership in the System and receiving no retirement benefits. Except, (1) a member with less than 5 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 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. EMPLOYEE CONTRIBUTIONS Each miscellaneous member, whether a new member or a member with years of membership, will start contributing at the uniform rate of 7% of salary earned, exclusive of overtime on the date this formula becomes effective. The employer also contributes toward the cost of the benefits. The amount contributed by the employer for current service retirement bene- fits 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 by the Board of Administration. EXHIBIT ONLY for Resolution No. 78-32 (Continued)