HomeMy WebLinkAboutCity Council - 3221 RESOLUTION NO. 3221
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH OF NOTICE OF INTENTION TO APPROVE
AN AMENDMENT TO CONTRACT WITH THE BOARD OF ADMINI-
STRATION OF THE PUBLIC EMPLOYEES ' RETIREMENT SYSTEM
AND THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
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 Procedures by which said public agencies may elect
to subject themselves and their employees to amendments to said
law; and
One of the steps required in the procedure to amend this con-
tract 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
The following is a summary of the proposed change :
1 . 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 .
2 . A monthly allowance shall be paid to certain survivors of
a member who dies before retirement .
NOW, THEREFORE, BE IT RESOLVED, that the City Council of
the City of Huntington Beach hereby gives notice of intention to
approve an amendment to the contract between the City Council and
the Board of Administration of the Public Employees ' Retirement
System, a copy of said amendment and a summary of the major provi-
sions of the proposed changes being attached hereto, marked Exhibits
1 .
"A" and "B" and by this reference made a part hereof.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting thereof held on the 5th
day of October, 1970 .
Mayor
ATTEST:
Pail C. Jones
City Clerk
B - �\
Assistant ity er
APPROVED AS TO FORM:
City Attorney
2 .
, . EXHIBIT A
AIMIDME_'JT TO CO 1T?�t C_ BETtIEE_T THE
BOARD OF AD T Ir:ISTRATIOIt
PUBLIC EMPLOYS I RLTIREII22NT SYST 1
. ` AND THE
CITY COUNTCIL
. : , OF T��E
+ CITY OF I-;tj lTl tGTO v BEACH
CH
The Board of Administration, Public Employees! Retirement System, hereinafter
referred to as Board and the CITY C0U'dCL`of the CITY Or iu::TTNGTOPdACh, herein-
after referred to as Public Agency having entered into a contract under date of
October 27! 1945, effective October 1, 1945, and as amended effective January 1,
1950, March 1, 1952 November 1, 1957, larch 1, 1958, and October 1, 1961, which
provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
A. -Paragraphs 1 through 10 are hereby stricken from said contract as executed
effective October 1,;1945, and are hereby replaced by the following paragraphs
numbered 1 through 11 inclusive:
1. All words and terms used herein unich are defined in the Public Employees'
Retirement Law shall have the meaning as defined therein unless otheinwise
specifically provided. "Normal retirement age" shall mean age 60 for
miscellaneous members and age 55 for local safety mernbers.
2. Public Agency shall participate in the Public Emloyeesi Retirement'
System from and after October 1, 1945, making its employees as here-
inafter provided, members of said system subject to all provisions
of the Dublic E.�z�loyees I y etirerent 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 nereaiter enacted except such as by
express provision 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 lake or this agreement:
a. Local firemen (herein referred to as local safety members);
b. Local policemen (herein referred to as local safety members);
c. City Life -cards employed on ocean beaches (herein referred to
as local safety members);
d. Employees other than local firemen and local-policemen and city
lifeguards (herein referred -to as miscellaneous members).
The following employes shall be excluded from : embership in said
Retirement System:
NO ADDITIONAL EXCLUSIO'is
R.et. 10orm 702-1
f..
.rj 4. The fraction of final compensation to be provided for each year of
credited current service as a miscellaneous Member upon retirement
at normal retirement age shall be 1/60 and shall be applied as pro-
vided in Section 21251.1 of said .Retirement Law.
5. The fraction of final compensation to be provided for each year of
credited current service as a local safety member shall be determined
in accordance with Section 21252.1 of said Retirement Law.
b. Benefits on account of prior service shall be 100% of the fraction
of final com,_oensation speci pied for miscellaneous members in Para-
graph 4 above, but computed in accordance with Section 21253 of said
Retirement Law, and for local safety members shall be 100'(, of the
fraction established in accordance with 2 aragraph ?.
7. Contributions for miscellaneous and local safety members shall be
subjcct to Sections 20601 and 20602 respectively of said Retirement
Law.
8. The following additional -provisions of the Public Rmoloreesr Retire-
.11
ment Law Vrcich apply only upon election of a contracting agency shall
apply to the PublicAgency and its employees:
a. Section 20024.01 (defining -"final compensation" on the basis of
a period of three consecutive years),
b. Section 21258(b) (providing a minimum retirement allowance of
720.00 per year under certain conditions).
c. -Section 21367 51 (providing a death benefit upon death
after retirement)
d. Section 20025 (providing for inclusion of co Densation without
limit in computations where compensation is a factor).
e. Section 20952.5 (providing for age 50 as the minimum voluntary
retirement age for local safety members with benefit payments
commencin prior to a e 55 subject to actuarial discount),
f. Section 20019.3 (providing for the inclusion of lifeguards on
ocean beaches as local safety : eabers)
Ret. Form 702-2
ction 21251.3 (providing for the recalculation of allowances
o persons retired prior to March 1, 1952, for time commencing
on March 1 1952 in accordance with this contract as amended
on March I, 1952, provided that no allowances are to be decreased
by such recalculation).
41. Section 21380-7 (providing for allowances for survivors of
a members covered under the program upon death before retirement).
Public Agency shall contribute to said Retirement System as follows:
a. With respect to miscellaneous members, the public agency shall
contribute the following percentages of monthly salaries earned
as miscellaneous members of said System;
(1) 5.692 percent on account of the liability for current service
benefits.
(2) ° 95.00 per month for each member covered under the provisions
of Section 21380-7 (1959 Survivors Program)
b. With respect to local safety members, the public agency shall
contribute the following percentages of monthly salaries earned
as local safety members of said System:
(1) 9.882 percent on account of the liability for current service
benefits.
(2) S5.00 per month for each member covered under the provisions
of Section 21380-7 (1959 Survivors Program).
c. A reasonable amount per annum, as fixed by 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 the periodical investigations 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 reported as
members on a payroll designated by the System covering one month
of each year, or with respect to the first year of participation,
on the effective date of said participation.
d. A reasonable amount as fixed by the Board, payable in one install-
ment as the occasions arise, to cover costs of special valuations
on account of employees of Public Agency, and costs of the period-
ical investigation and valuation required by law.
10. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
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.
Ret. Form 702-3
ll. 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 contributions refer. If
more or less than the correct amount of contribution is paid for any
neriod, proper adjustment shall be made in connection with subsequent
remittances or adjustment on account of errors in contributions re-
quired 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, bark drafts, certified
checks, money orders, or cash.
B. This amendment shall be effective on the day of
Witness our hands this day of
BO'D OF AD.�IINIST.U-TIO.; CITY COUNCIL
PUBLIC , -7LOY=S' R TIPME7,11T SYSM
Or TIC
CITY OF h` ,1TINGTON BMACH
BY
William E. Payne, :executive Officer
Presidin;,of A pp
Atte t �'
Paul C. Jones
Clerk
B
stant Tt _er
Ret. Form 702-
MIBIT B
Benefits to Employees Under
PERS SURVIVOR BENEFITS
(Benefits provided by Sections 21380-21387 of the Retirement Law)
BENEFITS
Survivors of members who elect coverage under the PERS survivor program and
whose death occurs before retirement will receive a monthly life income as follows:
Widow and two or more dependent children $250
or
Three or more dependent children, alone
Widow and one dependent child w180
or
Two dependent children, atone
Widow, alone, age 62 (widower age 65) $fi 90
or
One dependent child, alone
If there is no widow or dependent child, then 90
to each dependent parent (mother 62, father 65)
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. (For
purposes of the 1959 Survivor allowance, a person shall be considered
under the age of 18 if he is an unmarried, full-time student betweenthe
ages of 18 and 22.)
2. A widow ceases to be eligible for a benefit upon her remarriage.
3. A widower will be eligible for a benefit the same as a widow -provided he
was dependent upon the deceased member for at least one-half of his support.
4. 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 accumulated contributions plus an additional
amount equal to one-month's salary for each year of service, up to a max-
imum of six months. The above survivor benefits will be payable in addition
to any basic death benefit the survivor may be entitled to receive.
5. If a member is covered under both the PERS 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.
6. Section 21383 - If survivor is entitled to special death benefit and at
the same time is entitled to receive a survivor allowance, the survivor
allowance payable in any month shall be reduced by the amount of the
special death benefit allowance.
Ret. Form 1171-1 (Rev.1/70)
COST TO THE EMPLOYEE
Each employee will contribute $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 these
contributions be refundable.
EFFECTIVE DATE
These survivor benefits will become effective on (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 NOT NOW PROVIDED that
persons, who do not choose coverage will be allowed to choose coverage at a later
date.
For agencies not covered under QASDI 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 not eligible for
the PERS survivor benefits.
EXAMPLE
Under the PERS survivor program, if a member passes away before retirement
leaving a widow and four children, the widow would receive a monthly income of $250
until such time as the three oldest children have passed age 18 (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 passes 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.
For purposes of the 1959 Survivor allowance, a person shall be considered
under the age of 18 if he is an unmarried, full-time student between the ages of
18 and 22.
Ret. Form 1171-2 (Rev. 10/69)
Res. No.
3221
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss :
CITY OF HUNTINGTON BEACH )
I , PAUL C. JONES, the duly elected, qualified and
acting City Clerk of the City of Huntington Beach, and ex-
officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council
of the City of Huntington Beach is seven; that the foregoing
resolution was passed and adopted by the affirmative vote of
more than a majority of all the members of said City Council
at a regular meeting thereof held on the Sth
day of October lO 70 , by the following voter
AYES: Councilmen:
Gibbs, McCracken, Green, Matney, Coen, Shipley
NOES: Councilmen:
None
ABSENT: Councilmen:
Bartlett
Paul C. Jones
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach,,. California
Asszsban Czt er