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HomeMy WebLinkAbout73-15RESOLUTION NO. 73-15 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEE~ THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES ' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF UKIAH WP[EREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retire- ment System by the execution of a contract, and sets forth the pro- cedure by which said public agencies may elect to subject themselves and their employees to amendments to said law; and WHEREAS, one of the steps required in the procedure to amend this contract is the adoption by the legislative body of the public agency of a reso- lution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the changes pro- posed in said contract; 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 UKIAH gives, and it does hereby give, notice of intention to approve an amendment to contract between said CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment and a summary of the major provisions of the pro- posed change being attached hereto, marked Exhibits "A" and "B" and by this reference made a part hereof. CITY COUNCIL OF THE CITY OF UKIAH (Name) ,,~ Mayor (Title) 9-20-72 (Date adopted and approved') Ret. Form 122 EXHIBIT A Ret. Form 702-1 7~ (1) ~.?~ ~ vat~ ~ ~, 1~)0 en ~ of the b~ Ret. Form 702-2 (2) l?.~-i~ on aeeemnt ~f the lhM~ty fee current serv- ice benofttm. of to be de~efi b~' ~ ~ eo~ m ~ or eaeh 2mm') e d~ emmt of ~ ~u ~betieuo ~equteed ef an~ eqdmSq~ nSF be Bade Thio amendment ohall be a%~ehed te ~ e,~~ and ~l be effective CZff~Z 0~' I~ZAH At%eet, Ret. Form 702-3 EXHIBIT B SU~RY OF MAJOR PROVISIONS Modified 2% at Age 50 Retirement Program Local Safety Members - Membership is compulsory for all employees, except elected officials, who are employed one-half time or more except those excluded under the contract. SERVICE RETIRF2,~T Normal retirement age is 50 (also the earliest retirement age is 50) and the compulsory retirement age is 60. A local safety member may retire any time between these ages, 50 and 60, provided he meets the minimum requirements bhat he have at least 5 years of service, o_Er have attained the compulsory retirement age of 60. The monthly income is determined by age at retirement, years of credited service, and "final compensation". The basic benefit w~ill be 2% of "final compen- sation'' for each year of safety service upon retirement at age 50 with increasing percentages to a maximum of 2.7% at retirement at age 55. In order to coordinate the benefits from the State System with benefits from Social Security, the law provides that the portion of the State System benefits which relates to the first $~00 of monthly salary will be two-thirds of the fu]_l form~f~a with the full formula governing that portion of the benefit which is earned by the excess of "final com- pensation'' over $&OO. F~thematically this is exactly the same as though the salary subject to retirement were reduced by $133.33 for any member earning $~00 a month or more. "Final compensation" is average monthly sals~my (full time rate) earned dur~]g the final 36 consecutive months unless member specifically requests anotb, er 36 consecutive month period. A minimum service retirement a3_lowance of $1OO.OO per month is guaranteed upon compulsory retirement with credit for prior service. DISABILITY EETIEEMENT An employee becom~ng disabled to the extent that he is incapable of performing his duties shall be retired for disability. His disability will be either employ- ment connected (industrial disability) or otherwise (nonindustrial disability). An employee who becomes disabled while a member of this System for reasons arising out of his employment, will be eligible for a life income of fifty (50%) percent of his final compensation. If his disability is such that he is also entitled to a disability income from Social Security, the State System benefit will be reduced by the amount of the Social Security benefit. An employee becoming disabled for reasons not connected with his employment shall be eligible for disabLlity retirement provided he has at least 5 years of service; such disability retirement allowance is equal to 1.5% of final compensation for each year of service, with a guarantee of one-third of such final compensation for most employees who have rendered at least l0 years of service. The "ordinary" disability retirement allowance shall under no circumstances exceed the service re- tirement allowance which would become payable at age 60 if employment could be con- tinued to that age. DEATH BENEFITS Death Before Retirement Basic Death Benefi~t This benefit is a refund of the member's accumulated contributions plus six months' salary provided he has been a member for six years or more. For those who die before complet~Lug s~Lx 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. Industrial Death If death is service-connected in the judgment of the Industrial Accident Commission, a monthly income is paid to the widow for life (or until remarriage) instead of the above basic death benefit. However, if she is also eligible for survivor benefits from Social Security because of the member's death, the State system benefit will be reduced by the amount of such Social Security so long as Social Security benefits are payable (usually until the youngest child reaches 18 and after the widow reaches age 62). The total, including Social Security, would be 50% of "final compensation". If death was caused by external violence or physical force, the total benefit (including Social Security) would be increased to the following percentages of "final com- pensation'' so long as the widow lives and does not rema_.rry: Widow with 3 or more children ~der 18 75% Widow with 2 children under 18 70% Widow with 1 child under 18 62½% ~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 widow c~ elect to receive either the basic death benefit or a monthly in- come equal to one-half the unmodified retirement allowance the employee was eligible for on the date of his death. The monthly income lasts until the widow's death or remarriage with a guarantee that the System will pay as much as under the basic death benefit. -- ,Death After Retirement The death benefit is $500 if death occurs after retirement. This amount w~1~1 be in addition to any payments which might be made under an optional retirement benefit chosen by the member at his retirement. TERMINATION OF EMPLOYMENT __ _ Upon separation from employment, an employee with at least 5 years of service may either leave his contributions with the System and receive, ~pon attaiuing retirement age, the retirement benefit he has earned, or he may withdraw his contri- butions (plus interest), thus, terminating his membership in the System and receiv- ing no retirement benefits. Except, (1) a member with less that 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 separation from 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 withdrawiug his accumulated contributions. EMPLOYEE CONTRIBUTIONS Each local s~fety member, whcthor a new member or a member with years of membership, w~]] start contributing at the uniform rate of 9% of sala~y 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 benefits w~]!, on the average, exceed the cost to the employee. In addition, the employer bears the entire cost of prior service benefits, the industrial death and disability benefits. A31 employer contribution rates are subject to revision by the Board of Administration.