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Resolution No. 443RESOLUTION NO. 443 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS DECLARING ITS INTENTION TO APPROVE CONTRACT PROVIDING FOR PARTICIPATION IN THE STATE EMPLOYEES' RETIREMENT SYSTEM WHEREAS, the State Employees' Retirement Law permits the participation of Public Agencies in the State Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and WHEREAS, one step in said 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 Administration, which resolution shall contain a summary of the major provision 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 Cypress gives, and it does hereby give notice of intention to approve a contract between said City Council and the Board of Administration of the State Employees' Retirement System, providing for participation of said City of Cypress in said Retirement System, a copy of said contract being attached hereto, marked "Exhibits A., B, and C" respectively, and by this reference made a part hereof. APPROVED, PASED AND ADOPTED this 27th day of January, 1964, by the following roll call vote: AYES: 4 COUNCILMEN: Kanel, Van Dyke, Wright and Noe NOES: 0 COUNCILMEN: None ABSENT: 1 COUNCILMEN: Gorzeman MAY /OR OF THE CI TY'F CYPRESS ATTEST: CITY C RK OF THE` CIT OF CYPRESS I hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of Cypress at a regular meeting thereof held on the 27th day of January, 1964. J';2 J c TY CLERK OF THE C OlITY OF CYPRESS Rcanl ,ti nn Nn_ li A4 028 EXHIBIT A CONTRACT BETWEEN THE STATE EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF CYPRESS In consideration of the covenants and agreement hereafter contained and on the part of both parties to be kept and performed, Public Agency and Board hereby agree as follows: 1. 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 miscellaneous members and age 60 for local safety members. 2. Public Agency shall participate in the State Employees' Retirement System from and after May 21 , 19 64 making its employees as hereinafter provided, members of said System subject to all provisions of the State 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. 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. Local 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). The following employees shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS 4. 1/60 shall be 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, subject however, to the modification set forth in Paragraph 5 below. 5. The fraction of final compensation specified in paragraph 4 shall be reduced in the case of each member whose position is covered by Federal Social Security 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, it being recognized that such maximum may be changed.from'time to time by amendment to said Social Security Act and intended that any such change subsequent to the effective date of this contract shall not affect the amount of any retirement allowance based on service during any period prior to the date of such change. n .,...�....t.... /.G4 _ .Ail 6. Benefits on account of each year of prior service shall be as provided in Section 21253 except that the fraction of final compensation otherwise provided therein shall be reduced by 1/3 for application to the first $400 per month of final compensation in the case of each member whose position is covered by Federal Social Security. 7. The retirement benefits payable upon retirement for ordinary disability shall not be affected by the modification provided in Paragraph 5 of this contract except that 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 modified formula set out in Paragraph 5 of the contract. All other provisions of this contract shall be fully applicable to the computation of allowances upon retirement for disability. 8. Contributions shall be subject to Section 20601.5 providing for a reduction in rates of contributions as it relates to that part of the monthly compensation which does not exceed the monthly equivalent of the maximum annual amount included in "wages" under Section 209, Social Security Act, and 100 percent of such rate as it applies to the remainder of the monthly compensation. Miscellaneous members whose positions are excluded from Social Security coverage shall contribute in accordance with Section 20601. 9. The following provisions of the State Employees' Retirement Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Sections 21251.1 and 21253 (providing for a guaranteed percentage of final compensation for each year of current and prior service). b. Section 21252.5 (providing for a guaranteed percentage of final compensation for each year of current service for local safety members and a temporary annuity to age 65). c. Section 20024.01 (defining "final compensation" on the basis of a period of three consecutive years). d. Section 21258(b) (providing a minimum retirement allowance of $720.00 per year under certain conditions). e. Section 21367.51 (providing a $400.00 death benefit upon death after retirement). f. Section 20025 (providing for inclusion of compensation without limit in computations where compensation is a factor). g. Section 21365.5 (providing a monthly allowance in lieu of the basic death benefit for certain survivors of a member who dies in employment after qualifying for voluntary service retirement). 10. Public Agency shall contribute to said Retirement System as follows: a. 0.644 percent of total salaries paid monthly to members until June 30, 1984 on account of the liability for prior service benefits. b. 5.369 percent of total salaries paid by Public Agency each month to its employees who are and hereafter become members of said Retirement System on account of the liability for current service benefits provided that only salary earned as members of said System shall be included in said total salaries. RPsnlutin, Nn_ GI L1 - "A. c. A Reasonable amount per annum, as fix ed 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 of the periodical investigation and valuations 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 the payroll covering January 1 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 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. 11. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the State 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. 12. Contribtuions 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 contribtuions refer. If more or less than the correct amount of contribution 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 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 BOARD OF ADMINISTRATION STATE EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF CYPRESS By "/ ,'z _ C /c" `. i 7 (Presiding Officer) BY Attest: William E. Payne, Executive Officer I f • .P i4 Clerk / EXHIBIT B SUMMARY OF MAJOR PROVISIONS 1/90 -1/60 at _60 Retirement Program Local Miscellaneous Members MEMBERSHIP Membership is compulsory for all employees, other than elected officals, who are employed one -half time or more. SERVICE RETIREMENT: The earliest retirement age is 55; the normal retirement age is 60; and the compulsory retirement age is 70. An employee may retire any time between these ages, 55 and 70, provided he meets the minimum requirements that he either have more than $500.00 of accumulated contributions, or 20 years of services, or have attained the compulsory retirement age of 70. At normal retirement age 60, the unmodified allowance is 1/90 of that portion of "final compensation" up to and including the monthly equivalent of the maximum annual amount included in wages under Social Security, and 1/60 of that portion of "final compensation" as is in excess of that amount, for each year of credited service. If retire- ment is deferred beyond age 60, the percentage of "final compensation" for each year of service are increased actuarially up to age 65 but not beyond. If retirement is earlier than age 60, the percentages of "final compensation" for each year of service are actuarially decreased. "Final compensation" is average monthly salary (full time rate) earned during the period of three consecutive years of highest earnings excluding overtime compensation. A minimum service retirement allowance of $60.00 per month is guaranteed upon compulsory retirement with credit for prior service or upon retirement at age 65 with twenty years of service. DISABILITY RETIREMENT An employee becoming disabled to the extent that he is incapable of performing his duties shall be eligible for disability retirement provided he has at least $500 of accumulated contributions, or at least 10 years of service. The monthly retirement allowance is 1.50% of "Final compensation" for each year of service, with a minimum guarantee of 25% of final compensation for most employees who have rendered at least 10 years of service. The disability retiremen t allowance shall under no circumstances exceed the service retirement allowance payable upon retire- ment for service at age 60. DEATH BENEFITS The death benefit, where death occurs before retirement, consists of a refund of the member's accumulated contributions (including interest earned), plus an additional benefit equal to six months' salary where he has been a member for six years or more. For those who have been a member for less than six years, the additional benefit is one month's salary for each year of membership. If death occurs after retirement a lump sum of $400. will be paid. This amount will be in addition to any benefits which may be paid from Social Security or any payments which might be made under an optional retirement benefit chosen by the member at his retirement. D .... ..7 ...-i .... At.. 441 _ 1"1211 SURVIVORS BENEFIT A monthly allowance, in lieu of the death benefit otherwise provided, for certain survivors of a member who dies in employment after qualifying for voluntary service retirement. TERMINATION OF EMPLOYMENT Upon termination of employment, an employee may either leave his contributions with the System and receive, upon attaining retirement age, the retirement benefit he has earned, or his may withdraw his contributions (plus interest), thus terminating his membership in the System and receiving no retirement benefit. Except, (1) a member with $500.00 or less in accumulated contributions and less than 20 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 member makes monthly contributions to the System which are deducted from his salary. The rate of contribution (percentage of pay) depends upon a member's sex and age (nearest birthday) on the date of becoming a member and varies from a minimum of 3.52% to a maximum of less than 11.56%. The employer also contributes toward the cost of the benefits. The amount contributed by the employer for current service benefits will, on the average, exceed the cost to the employee. In addition, the employer bears the entire cost of prior service benefits. All contributions rates are subject to revision by the Board of Administration. D .. .. ..7 ....3 .. �, m- /./.Z _ fruit EXHIBIT C SUMMARY OF MAJOR PROVISIONS LOCAL SAFETY MEMBERS 13/4% AT 60 RETIREMENT PROGRAM MEMBERSHIP Membership is compulsory for all employees, other than elected officials, who are employed one -half time or more. SERVICE RETIREMENT The earliest retirement age is 55; the normal retirement age is 60; and the compulsory retirement age is 65. An employee may retire any time between these ages, 55 and 65, provided he meets the minimum requirement that he either have more than $500 of accumulated contributions, or 20 years of service, or have attained the compulsory retirement age of 65. At normal retirement age 60, the unmodified life allowance is 13/47 of "final compensation" for each year of credited service. If retire- ment is deferred beyond age 60, the percentage of "final compensation" for each year of service will be increased; if retirement is earlier than age 60, the percentage of "final compensation" for each year of service will be decreased. Where retirement is earlier than age 65, a temporary annuity will be payable until age 65 is reached. "Final compensation" is average monthly salary (full time rate) earned during that period of three consecutive years of highest earnings, excluding overtime compensation. A minimum service retirement allowance of $60.00 per month is guaranteed upon compulsory retirement with credit for prior service. DISABILITY An employee becoming disabled to the extent that he is incapable of performing his duties shall be retired for disability. His disability will be either employement- connected (industrial disability) or otherwise (nonindustrial disability). If disability is employment- connected he will be eligible for a life income equal to 50% of his "final compensation ".. If he is also entitled to receive a monthly disability benefit from Social Security the benefit payable from the State Employees' Retirement System will be reduced by the amount he is entitled to receive from Social Security. An employee becoming disabled for reasons not connected with his employment shall be eligible for disability retirement provided he has at least $500. of accumulated contributions or at least 10 years of service; such disability retirement allowance is 1.57. of "final compensation" for each year of service, with a guarantee of 257. of such compensation for most employees who have rendered at least 10 years of service. However, the disability retirement allowance can- not exceed the service retirement allowance which would be payable if employment could continue until age 60 retirement. DEATH BENEFITS If death before retirement is employment- connected (industrial death) the state system will pay a monthly income to the widow equal to 50% of the member's "final compensation" until death or remarriage of the widow. However, if he is also eligible for survivor benefit payments from Social Security because of the member's death the state system benefit will be reduced by the amount of such survivor benefits so long as Social S ecurity benefits are payable (usually until the youngest child reaches 18 if the widow is not then age 62). Upon discontinuance of Social restored to the full 50% or remarries while there system benefit is paid to Security benefits the state system payment is level. If there is no widow or if she dies are unmarried children under 18, the state the children. If the death is not service - connected, the benefit consists of a refund of the member's accumulated contributions plus an additional benefit equal to six months salary, provided, he has been a member for at least six years. For those who have been members less than six years, the additional benefit is equal to one month's salary for each year of membership. If death occurs after retirement a lump sum of $400 will be paid. This amount will be in addition to any benefits which may be paid from Social Security or any payments which might be made under an optional retirement benefit chosen by the member at his retirement. SURVIVOR BENEFITS A monthly allowance, in lieu of the death benefit otherwise provided, for certain survivors of a member who dies in employment after qualifying for service retirement. TERMINATION OF EMPLOYMENT Upon termination of employment, an employee 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 benefit. Except, (1) a member with $500 or less in accumulated contributions and with less than 20 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 member makes monthly contributions to the System which are deducted from his salary. The rate of contribution (percentage of pay) depends upon a members' sex and age (nearest birthday) on the date of becoming a member. Such contributions for make employees currently range from a minimum of 3.64% of salary to a maximum of 7.08% of salary. The employer also contributes toward the cost of the benefit. 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, the temporary annuity, and the industrial death and disability benefits. All contribution rates are subject to revision by the Board of Administration. Nn_ LLLll - "C"