HomeMy WebLinkAbout78-13 City Employee Retirement SystemORDINANCE NO. 7R-/3
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF COSTA MESA, CALIFORNIA, PROVIDING
RECIPROCAL BENEFITS TO CITY EMPLOYEES
RETIREMENT SYSTEM.
THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1: The City Council of the City of Costa Mesa
finds and declares that this Ordinance is intended to implement
that certain memorandum of understanding with its city employees
respecting reciprocity with the Public Employees' Retirement
System by adoption of Costa Mesa Municipal Code provisions
upon the adoption of this Ordinance and the execution of that
certain agreement, attached hereto, marked Exhibit "A" and
incorporated herein by reference. That upon the adoption of
this Ordinance the Mayor of the City of Costa Mesa is hereby
authorized and directed to execute said Agreement on behalf of
the City Council of the City of Costa Mesa. That Section "2"
hereof shall become effective on acceptance by the Board of
Administration, Public Employees' Retirement System, and as of
the date specified in the Agreement herein approved. That said
Ordinance.is adopted for the general health, safety and welfare
of the public.
SECTION 2: Accordingly, §2,-233 is hereby added to Title
2, Chapter VI of the Costa Mesa Municipal Code to read as follows:
"§2-233 RETIREMENT SYSTEM RECIPROCITY
The purpose of these reciprocal provisions is to
implement an Agreement pursuant to §20042, Government Code,
entered into between the City Council and the Board of Adminis-
tration, Public Employees' Retirement System (hereinafter re-
ferred to as P.E.R.S.).
All provisions of this system are hereby amended to
the extent necessary to provide the following obligations, rights
and benefits with respect to members who become members of P.E.R.S.
ac
or are members of P.E.R.S. and become members of this system;
provided that the termination of and entry into employment re-
sulting in such membership change, occur within a period of
six (6) months.
1. A member whose movement between systems
occurs as herein specified shall have the right to elect to
leave his accumulated contributions on deposit irrespective of
the amount of such contributions or the'length of service cre-
dited to him, such election to be irrevocable while membership
in P.E.R.S. continues.
2. Age.. of entry for a person entrying this
system for purposes of fixing member contribution rates in this
system shall be his age at entry into P.E..R.S. membership.
3. The average monthly salary during any
period of service as a member of P.E.R.S. shall be considered
compensation earnable by a member of this system for purposes
of computing final compensation for such member provided he
retires concurrently under both systems and is credited with
such period of service under P.E.R.S. at the time of retirement.
4. Service, solely for purposes of meeting
minimum service qualifications for benefits and retirement
allowances under this system, shall also include service rendered
as an officer or employee of P.E.R.S'. if the salary for such
service constitutes compensation earnable by a member of this
system.
5. A member shall be retired for disability
and receive a retirement allowance based on the service credited
to him at the time of retirement during any period in which he
receives a disability retirement allowance under P.E.R.S.;
provided, that such allowance shall not exceed an amount which,
when added to the allowance paid under.PE.R.S.; equals the
allowance which would be paid for a non -industrial disability
if all the member's service had been credited under P.E.R.S.;
and provided further, that such allowance shall in no event be
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less than an annuity which is the actuarial equivalent of the
member's contributions, whether or not the disability is for
industrial reasons.
6. The death benefit for a member who dies
from non -industrial causes as a member of P.E.R.S. shall not
exceed an amount which when added to the death benefit paid for
such member under P.E.R.S. equals the maximum death benefit
payable under that system; provided, however, that such death
benefit shall be at least the amount of the accumulated contribu-
tions; and provided further, that if death is caused by indus-
trial injury or disease while a member of P.E.R.S., the death
benefit shall be the amount of the member's accumulated con-
tributions.
7. The governing body of this system shall,
on the request of P.E.R.S., supply information and data necessary
for administration of such system as it is affected by membership
in and service credited under this system.
8. Interpretation of these provisions shall be
made with reference to interpretations that have been made re-
lative to the Public Employees' Retirement System - 1937 Act
County Employees' Retirement reciprocal provisions upon which
they are based.
9. These provisions shall apply only to a
member whose termination and entry into employment resulting in
a change in membership from this system to such other system
or from such other system to this system occurred after such
acceptance by the Board or after the effective date specified.
in the Agreement; provided, however, that provisions relating to
computation of final compensation shall apply to any other member
if such provision would have applied had the termination and
entry into employment occurred after such acceptance or de-
termination by a system's governing board.
10. All rights under this system are subject
to modification as may be necessary to conform to amendments to
the Public Employees' Retirement Law or the County Employees'
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Retirement Law of 1937 as provided in §20042, Government Code."
SECTION 3: This ordinance shall' -take effect and be in
full force and effect thirty (30) days from and after its passage,
and before the expiration o.f fifteen (15) days after its passage,
shall be published once in the Orange Coast Daily Pilot, a news-
paper of general circulation printed and published in the City
of Costa Mesa, together with the names of the members of the
City Council voting for and against the same.
PASSED AND ADOPTED this day of
1978.
Mayo of the City of Mesa
ATTEST:
City Clerk of the City ofto Mesa
APPROVED AS TO FORM: 67-
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 Ordinance No. '18 /3 was introduced and con-
sidered section by section at a regular meeting of said City Council
held on the _6- k day.of . 1978, and thereafter passed
and adopted as a, -whole at a regula meeting of said City Council
held on the o?/ day ofu 1978 by the following
roll call vote:
AYES:
COUNCIL MEMBERS
NOES: COUNCIL MEMBERS: '
ABSENT: COUNCIL MEMBERS:_
IN WITNESS WHEREOF, I have hereunto set my hand nd affixed
the Seal of the City of Costa Mesa this �_ day of ,
1978.
Ci y Clerk and ex-offici Clerk
of the City Council of tVe City.
of Costa Mesa
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AGREEMENT -FOR RECIPROCAL BENEFITS
BETWEEN. THE BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
THE CITY COUNCIL
OF THE
CITY OF COSTA MESA
The Board of Administration, Public Employees' Retirement
System, hereinafter referred.to as Board, and the. City Council of.
the City of Costa Mesa, hereinafter referred to as Public Agency,
hereby agree to extend each to the other reciprocal benefits as
provided by Sections 20042, 20043, 31840.2, and 45310.5 of the
Government Code, which benefits are more particularly set forth
in the memorandum, Uniform Reciprocal:Provisions, dated May 24,
1977, marked Exhibit "B", attached hereto and incorporated herein.
The parties hereto agree that this agreement shall be in
effect.on and after the effective date of the Public Agency's
ordihance.providing for reciprocal benefits, that date being
April 1, 1978.
WHEREFORE, the.parties have executed this agreement on the
date and place hereinafter set forth.
DATE: February 6, 1978
ATTEST:
EILEEN P. PHINNEY, Cityerk
DATE:
CITY COUNCIL OF THE CITY OF
COSTA M SA
By
NO HERTZOG, -.M
APPROVED AS TO FORM:
ROBRRT R. C1�MPAGA,
City Attorney
BOARD OF ADMINISTRATION,
PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
By
CARL J. BLECHINGER,
Executive Officer
EXHIBIT "A"
�Vcfe of California
Memorcandum
To = All Public Agencies Desiring To Enter into an'
Agreement for Reciprocal Benefits With the
Public Employees' Retirement System
From : Board of Administration --Public Employees' Retirement System
Subject: Uniform Reciprocal Provisions
EXHIBIT '"B"
Date. May 24, 1977
- For the purpose of expediting the conclusion of reciprocal agreements
with the Public Employees' Retirement System or other public agencies main-
taining independent retirement systems, and to avoid problems in interpre-
tation that may arise from a great variation in reciprocal provisions, the
Board of Administration recommends the adoption of the following reciprocal
provisions into the retirement ordinances or plans of public agencies desiring
to enter into a reciprocal agreement with the Public Employees' Retirement
System or other public agencies:
Reciprocity
The purpose of these reciprocal provisions is to extend to the members
of other public agency retirement systems (hereinafter "reciprocal system")
which adopt similar reciprocal provisions into their retirement ordinances or
plans pursuant to Sections ,2001+2, 20043, 31840.2 and 45310.5 of the Government
Code, and who by contract agree to extend the benefits thereof to this system,
the following rights in this -system, provided such,member enters an employ-
ment under this system or the reciprocal system within 6 months of terminating
his employment under such other or this system:
- (1) notwithstanding any provisions of this plan or a reciprocal system
plan in the -matter of vesting, a member whose movement between systems occurs
as herein specified shall have the right to elect to leave his accumulated con-
tributions on deposit irrespective of the amount of such contributions or the
length of service credited to him.
(2) The age of entry for a person entering his system for purposes of
fixing member contribution rates from a reciprocal system shall be his age at
entry into such reciprocal system.
(3) The average monthly salary during any period of service as a member
of a reciprocal system shall be considered compensation earnable by a member
of this system for purposes of computing final compensation for.such member,
provided he retires concurrently under both systems and is credited with such
period of service under one reciprocal system at the time of retirement.
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Re: Uniform Reciprocal Provisions
(4) Service, solely for purposes of meeting minimum service quali-
fications for benefits and retirement allowances under this system, shall
also include service rendered as an officer or employee of a reciprocal
system if the salary for such service constitutes compensation earnable
by a member of this system.
(5) A member shall be retired for disability and receive a retirement
allowance based on the service credited to him at the time of retirement
during any period in which.he receives a disability retirement allowance
under a reciprocal system; provided, that such allowance shall not exceed
an amount which when added to the allowance paid under the reciprocal system
equals the allowance which would be paid for a nonindustrial disability if
all the member's service had been credited under the reciprocal system; and
provided further, that such allowance shall in no event be less than an
annuity which is the actuarial equivalent of the member's contributions,
whether or not the disability is for industrial reasons.
(6) The death benefit for a member who dies from nonindustrial causes
as a member of a reciprocal-system.shall not exceed an amount which when
added to the death benefit paid for such member under the reciprocal system
equals the maximum death benefit payable under that system; provided, however,
that such death benefit shall be at least the amount of the accumulated contri-
butions; and, provided further, that -if death is caused by industrial injury
or disease in the reciprocal system the death benefit shall be the amount of
the member's accumulated contributions.
(7) The governing'body of this system shall.on the request of a reciprocal
system supply information and date necessary for administration of such system
as it is affected by membership in and service credited under this system.
(8) Interpretation of these provisions shall be made with reference to
interpretations that have been made relative to the Public Employees' Retirement
System - 1937 Act County Employees' Retirement reciprocal provisions upon which
they are based.
(9) These provisions shall apply only to a member whose termination
and entry into employment resulting in a change in membership from this system
to such other system or from such other system to this system occurred after
such acceptance by the board or after the effective date specified in the
agreement; provided, however, that provisions relating to computation of final
compensation shall apply to any other member if such provision would have
applied had the termination and entry into employment occurred after such
acceptance or determination by a system's governing board.
5/24/77
RECIPROCITY PROVISIONS
Public Employees' Retirement Law
Government Code
ReciArocity With Cities
20042. The provisions of this part extending rights to a member of this
system, or subjecting him to any limitation by reason of his membership
in a retirement system established under the County Employees' Retirement
Law of 1937, shall apply in like manner and under like conditions to a member
of this system by reason of his membership in any retirement system established
under Chapter 2 (commencing with Section 45300) of Division 5, Title 4 with
respect to which an ordinance complying with Section 45310.5 of this code
has been filed with and accepted by the board or by reason of his membership
in a retirement system established by or pursuant to the charter of a city
or city and county or by any other public agency of this state which system,
in the opinion of the board, provides a similar modification of rights and
benefits because of membership in this system and with respect to which the
governing body of such city, city and county or public agency and the board
have entered into agreement pursuant to this section. An agreement under
this section shall provide that the governing body shall modify its retirement
system to conform to any amendments to this part affecting a member's right
because of membership in a retirement system established under the County
Employees' Retirement Law of 1937, and may contain such other provisions
consistent with this section as the board deems appropriate. This section
shall apply only to a member whose termination and entry into employment
resulting in a change in membership from this system to such other system
or from such other system to this system occurred after such acceptance by the
board or after the effective date specified in the agreement; provided,
however, that provisions relating to computation of final compensation shall
apply to any other member if such provision would have applied had the
termination and entry into employment occurred after such acceptance or
determination by the board.
t
20043• Any public agency which has pursuant to the provisions of Section
20042 entered into an agreement to establish a reciprocal retirement system
with this system shall be deemed to have obtained the same rights and limi-
tations with respect to all other public agencies who have entered into such
agreements and established reciprocity as well as with respect to retirement
systems established under the County Employees' Retirement Law of 19379 and
under Chapter 2 (commencing with Section 45300) of Division 5 of Title 4 of
this code which have established reciprocity with this system pursuant to
Section 20042.
Break in Service
20045. Maximum period of break in service extended. Wherever in this part
the rights of a member, because of membership in another retirement system,
are conditioned upon employment within 90 days of termination of membership
in this system or another retirement system, with respect to such employment
which occurs on and after January 1, 1976, such period shall be six months
rather than 90 days.
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Reciprocity Provisions (continued)
20045(cont.)
This section shall also be applicable to members who were permanent
employees of the state who were laid off because of a reduction in work
force and whose break in service between retirement systems occurred prior
to January 19 1976, -but not before April 19 1970.
20046. Break in service by elective officers. PJheneve r in this part the
rights of a local member, because of membership in another retirement
system, are conditioned upon employment within six months of termination of
membership in this system or another retirement system, such period shall
be one year rather than six months if the local member was an elective
officer and becomes a member of another retirement system upon commencement
of service in another elective office on and after January 1, 1977.
This section shall not apply unless the other employer in a reciprocal system
elects a similar provision, nor shall it apply to any contracting agency nor to
the employees of any contracting agency unless and until the agency elects
to be subject to the provisions of this section by amendment to its contract
made in the manner prescribed for approval of contracts, except that an
election among the employees is not required or, in the case of contracts
made after January 11 1977, by express provision in such contract making
the, contracting agency subject to the provisions of this section.
Membership Rate Age
20600.5. For purposes of this chapter, the age of entry into this system
as a member in any membership category for a person who enters on or after
October 11 1957, and within 90 days after last rendering service as a member
of a retirement system established under the County Employees' Retirement
Law of 1937 and who retains his membership in such system shall be his age
at entry into such county retirement system.
Deferred Retirement
20393. Any other provision in this part to the contrary notwithstanding, a
member who is credited with five or more years of service shall have the
right to elect, not later than 90 days after the date upon which notice o2
said right is mailed by this system to the member's latest address on file
in the office of this system, whether to leave such accumulated contributions
on deosit in the Retirement Fund under any of the following conditions:
If his state service is discontinued by reason of resignation or
dischare.
(2� If his state service is discontinued by reason of layoff or 'Leave of
absence deemed by the board to have resulted in permanent discontinuance (and
in such case, as of the date of the determination by the board that the dis-
continuance is permanent).
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Reciprocity Provisions (continued)
20393 (cont.)
(3) If a member ceases to be entitled to credit in this system for
future service because he has become entitled to credit for such service
in another retirement system supported wholly or in part by funds of the
United States government, or any state government or political subdivision
thereof.
(4) If the disability retirement of a member is followed by cessation
of the disability and by cancellation of the disability allowance, but the
member does not reenter state service.
A member who is credited with less than five years of service shall have
such right to elect if he enters employment as a member of a retirement
system established under the County Employees' Retirement Law of 1937
on or after October 1, 1957, and within 90 days of leaving state service.
Failure to make such election shall be deemed an irrevocable election to
withdraw his accumulated contributions. An election to allow accumulated
contributions to remain in the Retirement Fund may be revoked by the
member at any"time except while he is employed in state service in a position
in which he is not excluded from membership with respect to such service, or
while he is in service, entered on or after October 1, 1957, and within 90
days after discontinuing state service, as a member of a retirement system
established under the County Employees' Retirement Zaw of 1937. All contri-
butions accumulated up to the time of revocation may then be withdrawn. A
member whose membership continues under this section is subject to the same
age and disability requirements as apply to other members for service or
for disability retirement. After the qualification of such member for
retirement by reason of age, which shall be the lowest age applicable to
any membership category in which he has credited service, or disability,
he shall be entitled to receive a retirement allowance based upon the
amount of his accumulated contributions and service standing to his credit
at the time of retirement and on the employer contributions held for him
and calculated in the same manner as for other members, except that the
provisions in this part for mine service and disability retirement
allowances do not apply to him, unless he meets such minimum service require-
ments. If a basic death benefit becomes payable under Article 5 of
Chapter 9 of this part because of death before retirement of such a member,
the average annual compensation earnable in the year preceding the date of
termination of such service rather than in the year preceding death shall
be used in computing such benefit under such Article 5 of Chapter 9.
The provisions of this section as it read prior to the operative date of the
amendment to this section at the 1971 Regular Session shall continue with
respect to a member whose membership continued under this section on such
operative date.
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Reciprocity Provisions (continued)
Final Compensation
20023.1. The average monthly salary during any period of service as a
member of a county retirement system established under the County
Employees' Retirement Law of 1937 shall be considered compensation
earnable by a member of this system for purposes of computing final
compensation for such member provided:
(1) Entry into membership in one system occurred on or after
October 1, 1957, and within 90 days of discontinuance of employment as a
member of the other system.
This subsection shall not deny the benefit of this section to any
person retiring after October 11 1963, who entered such membership prior
to October 1, 1957, provided he entered the employment in which he became
a member within 90 days of termination of employment in which he was a
member of the other system, and he became a member within seven months of
entry into such employment, or, if an employee of a district as defined in
Section 31468, became a member at the time the district was included in
a county retirement system established under the County Employees'
Retirement Law of 1937.
(2) He retire concurrently under both systems and is credited with
such period of service under the county system at the time of retirement.
Qualification For Benefits
20801.1. "State service," solely for purposes of qualification for
benefits and retirement allowances under this system, shall also include
service rendered as an officer or employee of a county if the salary for
such service constitutes compensation earnable by a member of this system
under Section 20023.1.
Disability Retirement
21021.5. A member whose membership continues under Section 20393 shall be
retired for disability and receive a retirement allowance based on the
service credited to him at time of retirement during any period in which he
receives a disability retirement allowance under a retirement system
established under the County Employees' Retirement Law of 1937, subject to
the following conditions:
(1) That such allowance shall not be paid if entry into membership
of such county system occurred prior to October 1, 1957, or after more
than 90 days of discontinuance of state service.
(2) That such allowance shall not exceed an amount which when added
to the allowance paid under such other system equals the allowance which
would be paid if the member's state service were credited under such other
system where retirement is for disability not arising out of or in the course
of employment subject to such other system; provided, however, that the
allowance shall in any event be no less than an annuity which is the
actuarial equivalent of member's contributions.
Reciprocity Provisions (continued)
21021.5'(cont.)
That such allowance shall be an annuity which is -the actuarial
of accumulated contributions where retirement under such other
for disability arising out of and.in the course of employment
such other system.
(3)
equivalent
system is
subject to
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Death Benefits
21360. This system is liable for either the basic or special death benefit
upon. -the death of a member -(.a) before the effective,date of retirement, and
(1) while in state service, or (2) while absent on military service and who...,
makes contributions ander Section 20891 or 20891.1 or for whom contributions
will be made under Section 20894.59 or (3) within four months after dis-
continuance of state service, or while on an approved leave of absence, or
(4) while physically or mentally incapacitated for the performance of duty,
if such incapacity has been continuous from discontinuance of state service,
or (5) while employed as a member of a retirement system established-under-
the
stablished-underthe County Employees' Retirement haw of 1937 (commencing with Section 31450);
provided, such employment as a member was begun on or after October 1, 19579
and within 90 days of discontinuance of state service, or (b) after the
effective date and before approval of retirement and either within four
months of discontinuance of state service or while-. physically or mentally.
incapacitated for the performance of.duty if such incapacity has been con-
tinuous from discontinuance of state service and providing all of the
following conditions exist: (1) the retirement of the member was not compul-
sory under Article 2 of Chapter 89 and (2) he has not elected optional
settlement 2 or 3 or an optional settlement'4 involving payment of an allowance
throughout the life of a beneficiary under Article 4 of Chapter 9, and (3)
an allowance under Section 212639 21263.1 or 21264 is not payable. Upon the
death of a member before the effective date of his retirement or, with respect
to (1) any member whose retirement was not compulsory under Article 2 of
Chapter 8, and (2) any member who has not elected optional settlement 2 or
3 or an optional settlement 4 involving payment of an allowance throughout
the life of a beneficiary under Article 4 of Chapter 9, after such effective
date and before his retirement' is approved, , under circumstances in which
this system is not so liable for either the basic or special death benefit
and an allowance under Section 21263, 21263..1 or 21264 is not payable, this
system is liable for a limited death benefit which consists only. of the
accumulated contributions of the member payable to his beneficiary or to
his estate. f
Liability imposed on the system with respect to the death of a member while
on approved leave of absence by amendment to this section in the 1965 General
Session shall extend -to death of members occurring on or after July 1, 1964,.and
to any benefit for which there would have been liability with respect to such
death had such amendment been effective on 'that date.
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Reciprocity Provisions (continued)
21361. Basic death benefit
The basic death benefit is payable in all cases where the retirement
system is liable under Section 21360 for either the basic or -a special
death benefit and the special death benefit is not payable.
The basic death benefit shall consist of:
(a) The accumulated contributions of the member.
(b) An amount, provided from contributions by the -state, or a contracting
agency, ,equal to one -twelfth of the annual compensation earnable by the
deceased during the 12 months immediately preceding his death, multiplied
by the number of completed years of current:service credited to the member,
but mot to exceed one` -half of such compensation.
The basic death benefit for a member who dies under the circumstances
described in subdivision (a)(5) of Section 21360 shall not exceed an amount
which when added to the death benefit paid for such member under such other
system equals the maximum death benefit payable under that system, if the
death is not the result of injury or disease arising out of and in the
course of his employment under that system; provided, however, that such
benefit shall be at least equal to his accumulated contributions. The
basic death benefit for such member shall be the amount of his accumulated
contributions if death is the result of disease or injury arising out_of
and in the course of employment under such other system.
Information Exchange
20129. The board shall, on the request of a board of retirement of a
retirement system established under the County Employees' Retirement Law
of 1937, supply information and data necessary for administration of such
system as it is affected by membership in and service credited under this
system.
r
w. ,
J
STATE OF CALIFORNIA—BOARD OF ADMINISTRATION EDMUND G. BROWN JR., Governor
PUBLIC EMPLOYEES' RETIREMENT SYSTEM =; ,
1416 NINTH STREET, P.O. BOX 1953
SACRAMENTO, CALIFORNIA 95809
Telephone (916) 445-7276 Reply to Section 032
March 24, 1978 —? 7
Ms. Eileen P. Phinney, City Clerk __ � --
City of Costa Mesa
P. 0. Box 1200 _-
Costa Mesa, California 92626
Dear Ms. Phinney:
The Board of Administration, Public Employees' Retirement System, at
its March 22, 1978 meeting adopted the attached Resolution accepting
the Ordinance adding Section 2-233 to Title 2, Chapter VT of the Costa
Mesa Municipal Code and authorizing the Executive Officer to execute
the Agreement for Reciprocal Benefits Between the Board of Administra-
tion, Public Employees' Retirement System and the City Council of the
City of Costa Mesa.
The Agreement will be effective as of the date specified in the
Agreement, April 1, 1978.
Very truly yours
arles I. Gibbs; Staff Counsel
Legal Office
CIG:af
Enclosures
1.) Resolution
2.) Ordinance 78-13
Exhibit "A" - Agreement
Exhibit "B" - Uniform Reciprocal Provisions
3.) List of Contracting Agencies
4.) List of Reciprocity Agencies