Resolution No. 1893
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Rl!SOLUTION OF INTENTION To APPROVE
AMENIl4ENT TO CONTRACT PROVIDING FOR
PARTICIPATION IN
STATE EMPLOYEES' RETIREMENT SYSTEM
RESOLUfION NO. 1893
OF THE CITY COUNCIL
OF THE CITY OF VERNON
WHEREAS, the State Employees' Retirement Law permits the participation of public
agencies in the state Errlployees' Retirement System, by the execution of a contract
making their employees members of said System, and sets forth the procedure by which
said public agencies may elect to subject themselves and their employees to amendments
to said law, providing for a guaranteed percentage of final compensation for each
year of service as "Member", and providing for the portion of compensation to be in-
cluded in computations under said law; and
WHEREAS, one. step in said procedure is the adoption by the legislative body of
the public agency, of a re.solution giving notice of its intention to approve an amend-
ment to a contract between said governing board and the Board of Administration of
said Retirement System, providing for said participation, which said resolution shall
contain a summary of the major provisions of the proposed Retirement System; and
WHEREAS, the following is a summary of the major provisions of the proposed
Retirement System:
1. The System is administered by a board of eightmembers, composed of
three members of the System, an official of a bank, an official of a
life insurance company, the Director of Finance, a member of the State
Personnel Board, and an official of the University of California.
2. Retirement for service is optional upon attainment of age S, by 10-
cal firemen and 10cal policemen, and a.ge 60 or age ,!) at the election
of the Public Agency, by other employees, and completion of twenty
years of service for the Public Agency, and is compulsory at age 6,
~or local firemen and local policemen, and at age 70 for other employees.
3. The monthly retirement allowance payable upon retirement for service
is dependent upon such factors as age, sex, salary and years of ser....
vice.. For local firemen and local policemen, retiring at age S5 in
paragraph 2, or at a higher age with 20 years of service, the month-
ly allowance is approximately one-half' the average monthly salary
during the five years immediately preceding retirement, unless the
Public Agency elects to provide prior service benefits at less than
the full amount. For other Agency employees, the monthly allowance,
upon retirement at age 65 if the Agency elects 60 as the lowest op-
tional service retirement age, is approximately 1/70th of the aver-
age monthly salary during the five years immediately preceding
retirement, for each year of service after the effective date of
participation, plus approximately 1/70th, or less as may be pro-
vided in said contract by the Public Agency for its employees, of
"final compensation" or of the average monthly salary during the
three years immediately preceding the effective date of partici-
pation, for each year of service prior to that date. Upon retire-
ment at age 60, if' the agency elects S5 as the lowest optional
serv1ceretirernent age, the fraction is approximately l/60th instead
of l!701ih.
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4. A minimum service retirement allowance of $40 per month is guaranteed
upon retirement at age 70 with credit for service rendered prior to
said effective date, if the Public Agency elects age 60 as the lowest
optional service retirement age, or a minimum allowance of $60 per
month upon retirement at age 6, or over with twenty years of service,
or upon retirement at age 70 with credit for prior service, if the Pub-
lic Agency elects age " as the lowest optional service retirement age.
,. Retirement for disability, except in the case of local firemen and lo-
cal policemen' disabled :trom injury arising out of and in the course
of employment, is permitted only after ten years of service and upon
proof of incapacity for the performance of duty.
6. The monthly retirement alllowance payable upon disability retirement,
described in preceding item $, is dependent upon such factors as age,
salaxy and years of service, but generally is equal to 90% of 1/70th,
or 1/60th as the case may be, of the average monthly salary during
the five years ilmnediately preceding retirement, for each year of
service , with a guarantee of 2,% of said salaxy, subject to certain
restrictions and modifications.
7. Disability retirement of local firemen and local policemen, in the
event of disability arising out of and in the course of employment,
is permitted regardless of age and service, the monthly retirement
allowance being one-half the average monthly salary during the f1 ve
years ilmnediately preceding retirement.
8. The benefit payable at death before retirement, except in the case of
local firemen and local policemen dying from injury arising out of
and in the course of. employment, consists of the contributions of the
member plus interest, and plus 1/12th of the member's annual salary
during the year immediately preceding death, for each year, not ex-
ceeding six years, of service as a member of the System. Upon death
after retirement, and at the election of the Public Agency, a bene-
fit of #aaa- is payable.
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9. The monthly allowance payable to the widow and ch11dren, at the death
of local firemen and local policemen arising out of and in the course
of employment, is one-half the average monthly salary during the five
years immediately preceding death.
10. The benefit upon separation from service by other cause than death
or retirement, is the refund of the member's contributions, with in-
terest. Members having accumulated contributions of at least $,00
upon resignation or discharge, may elect irrevocably, within ninety
days, to leave contributions in the Retirement Fund, and then upon
reaching the lowest optional service retirement age or becoming dis-
abled, to be entitled to receive such retirement allowance as will
be provided by their and the Agency's contributions and their
credited service, regardless of service rendered.
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11. Contributions required of local firemen and 10cal policemen, without
credit for prior service, depend upon salary and upon age of entry into
the Retirement System, the contributions per $100 of salary varying
from $7.63 at entry age 21, to $14.35 at entry age 35. Contributions
of firemen and policemen having credit for prior service depend on
salary, entry age, and amount of prior service, the amount of contribu-
tions per $100 being $16.33 for example, at entry age 54, with 19 years
of prior service.
12. For other Agency employees, the contributions depend upon salary, sex
and age of entry into the Retirement System, the contributions per $.100
of salary varying from $4.62 at age 20, to $7.99 at age 64, for men,
and from $5.36 at age 20, to $9.45 at age 64, for women, all based on
the Public Agency's election of age 60 as the Imvest optional service
retirement age. If the Public Agency elects age 55 as the lowest op-
tional service retirement age, the contributions per $100 of salary
vary from $7.36 at age 20, to $10.88 at age 59, for men, and from
$8.35 at age 20, to $12.81 at age 59, for women.
13. The Agen~ is required to contribute the balance of funds necessary to
meet the cost of the benefits provided under the Retirement System for
the Agency employees. The Agency also is required to pay its propor-
tionate share of the administrative costs of the System.
14. Ability of the Retirement System to pay benefits is safeguarded by a
provision authorizing the Board of Administration to revise contribu-
tions of both employees and the Agency, in the light of experience
under the System.
BE IT RESOLVED, that the
CITY COUNCIL
(Name of Governing Body)
, give, and it hereby gives notice of inten-
of
CITY OF VERNON
(Name of Public Agency)
tion to approve an amendment to the contract between said
CITY COUNCIL
CName of Governing Body)
and the Board of Administration of the State Employees' Retirement System, providing
for the participation of said CITY OF VERNON in said Retire-
(Name of Public Agency)
ment System, a copy of said amendment being attached hereto, marked uExhibit AU, and
by reference made a part hereof.
CITY COUNCIL
(Name of Governing Body)
By
CITY OF VERNON
(Name of Public Agency)
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Y0f7 Title)
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Februa ry 7, , 19 56
lDate Adopted and Approved)
ttest:
G. A. AN ERSON, CITY CLERK
By . r~Ld
City Clerk
Fl22d - 3 (Guar. % & Comp.)
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AMElmMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
STATE >>1PLOIEES' RETIREMENT SYSTEM
AND THE CITY COUNCIL
OF THE CITY OF VERNON
.
The Board of Administration, State Employees I Retirement System, and the City Council
of theCi ty of Vernon" hereinai'ter referred to as Agency" having entered into a con-
tract under date of October 23, 1948, effective November 1, 1948, which provides for
the participation of said Agency in said Retirement System, and said Contract being
based on the Retirement Law, exclusive of amendments thereto which changed benefits
and ages of retirement, said Board of Administration. and said City Council hereby
agree as follows:
1. Paragraphs 4, 5, 6, 7, 8, 9, 10, 11 and 12 of said Contract shall be and
are hereby" stricken from said Contract.
2. The following paragraphs shall be added. to said Contract:
4. Age 60 shall be the normal age for retirement tor service, of persons
who are miscellaneous members because of employment by PI1blic AgenC7,
that is, members other than Local Firemen or Local Policemen, and one-
sixtieth shall be the fraction ot final compensation, as defined in said
Retirement Law, to be provided .for each year of service as a member upon
retirement at age 60" and the provisions of Section 21251.1 of said
Retirement Law" providing for a guaranteed percentage of said final com-
pensation" SHALL .APPLY.
5. Prior service benefits to miscellaneous members employed by Public Agency;
that is, members other than Local Firemen or Local Policemen, upon retire-
ment tor service" shall be allowed only as a percentage of the average sal.a17
specified in Section 21253 of said Retirement Law, for each year of such
service, aDd said percentage shall be 100 percent of the percentage deter-
mined under said section for the age at retirement.
6. Age 55 shall be the minimum age for retirement for service, of persons
who are members because of employment by Public AgencY' as Local Firemen"
Local Policemen or CountY' Peace Officers and the provisions of Section
21252.4 of the state Emplo;rees I Retirement Law, providing for a guaranteed
percentage of final compensa.tion tor ea.ch year of current service as a
member SHALL .APPLY to such members.
7. Benefits on account o~ prior service" that is" service credited herEJ1:'U1der
as rendered. to Public .Agency prior to the effective date of participation"
to respective persons who are members because of employment by Public
Agency as Local Firemen or Local Policemen, shall be allowed only as a
percentage of the average salary specified in said Reirl.rem.ent Law" for
each year ot such service" and said percentage shall be 100 percent of the
fraction of final compensation" as defined in the state Elaployees I Retire-
ment Law" for each yep- of such service rendered after said date" as
determined for said respective members under said law" for retirement for
service at age S5" or upon qualification for service retirement ata
higher age. If a. member retires for service before ai;i;a.iniBg age 55, his
prior service pension shall be reduced to that amount which the value of
the pension as deferred to age 55 will purchase at the actual ageef retire...
mente
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a.. The provisions of Section 21256b oftha state Employees' Retirement Law,
guaranteeing a m1'\illlUlll retirement allowance UIJder certain conditions
SHALL APPLY to persons 1-rho are members because of employment by Public
Agency.
9. The provisions of Section 21.367.51 of the state Employees' Retirement
Law, providing afhOO death benefit after retirement SHALL APPLY to
persons who are members because of empJ.oyment bY' Public Agency.
10. The prov.Lsions of Section 20025 of the State >>aployees' Retirement Law,
providing that there shall be no ~:rllllUlll limitation in the compensation
which shall be included in computations under the Retirement Law, SHALL
.APPLY to employees of Public Agency who become members of said RetireDSnt
System.
11. The provisions of Section 20024.0l. of the state Employees' Retirement Law,
which provide that "final compensation" sbaJ.l mean the highest average
amw.al compensation earnable b.r a member during a:rq period of three con-
secutive years during his membership in the System, SHALL APPLY to employees
of Public Agency who become members of said Retirement System..
12. The retirement allowances of persons who were members because of e~
ment by Public Agency- and who were retired prior to the effective date
of this amendment shall be recalculated on the basis of this contract,
except that paragraph 11 of this amendment shall not apply to this reca1.-
culation. In no event shall. a:rry allowance be decreased, and said alJ.owances;
shall be paid for time beginning with the effective date of this amendment
in the recalculated amounts. Paragraph 9 of this contract shall apply to
persons retired prl.or to the effecti.. date of this amendment and whose
death occurs while receiving a retirement allowance based on time after
said effective date because of employment by Pnblic !gena:!.
13. Pu.blic Agency shall contribute to said Retirement System as followsf
a. The SWI1 of $.37,680.12 per at'1nUlll, or more frequent insta.l.1ments
as Board. shall require, for the period of years stated in said
contract, less the time elapsed from. the date of participation
to the effective date hereof.
b. 6.132 percent of total. salaries paid by Pu.blic Agency each month
to its employees who are members of said Retirement System, pro-
vided that only saJ.ar;y earned as members of said System s.hall be
included in said total saJ.ar:tes, and the employees who are members
of said System shall include employees who are members upon the
eUective date hereof and employees who become members thereafter.
c. A reasonable atllOl.J.nt per annum, as fixed by Board, to cover the
costs of administering said System as it affects the employees ot
Public Agency not including the costs of special valuations or of
the periodical investigation and valuation required by law, pre-
vided that said amount shall be determined on the basis of the
number of employees of Public Agency- who are members on July 1st
of the respective years.
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d. A reasonabJ.e amount as fixed by the Board, payable in one instaJ.l.ment
from time to time as the ocoasions arise, to cover the costs of special.
valuations on acoount of empJ.oyees of Public AgencY', and the costs of
the periodical. investigation into the experience under said Rstirement
System as it affects said employees, and the vaJ.uation of assets and
liabilities of said System on account of said empJ.oyees.
Contributions required of PubJ.io Agenq and its em.pJ.oyees shall be subje.t
to adjustment by the Board of Pinistration on account of amendments to
the state >>aployees:f Retirement Law, and on account of experience under
the Retirement System, as determined by the periodioal. investigation"
valuation and determination provided ffYr by said Retirement Law.
Cont.ributions required of Publio Agenoy under the paragraph immediately
preceding, and oontribu.tions required of Public Agenay- I s employees who
are members of said System" shall be paid by Public AgenDY to the state
l!mpJ.oyees' Retirement System, wi thin thirty days after the end of the month
or J.onger period to which said contribu.tions refer. If more or less than
the correct amount of contribution required of Publio Agency or its
employees is paid for any period, proper adjusbnent shall be made in
connection with the subsequent reJd.ttanoes of Public .Agency to the Board,
to rectify the errors) or suoh adjustments on account of errors made in
contributions required of empJ.oyees" may be made by direct cash p~ts
between the employee in connection with whom the error was made" and
Board. Payments of' Public Agency to Board may be made in the form of
warrants" bank checks, bank drafts" certif'ied cheeks"lDIl!l.67 orders" or
cash.
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3. This amendment shall be attached to said contract and shall be effeoti w
as of
.
Witness our hand this
day of
.
BOARD OF ADMINISTRA.TION
STATE EMPLOYEES' RETIRF1-IEN'l' SYSTEM
BY
President
CITY COUNCIL OF TI:1E
CITY OF VERNON
BY
Presiding Officer
Attest1
Attest:
Executive Officer
Clerk
1f'.
TELEPHONES
J. B. MOORE, AOMINISTRATIVE ASSISTANT
TO THE CITY COUNCIL
LOGAN 8.336\
CITY CLERK LAFAYETTE 8878
POLICE DEPT. JEFFERSON 5287
ENGR. DEPT. LOGAN 8-\666
FIRE DEPT. KIMBALL 2522
CITY HALL
4305 SANTA FE AVENUE
fEB 7 1956
VERNON 58, CALIFORNIA
l
s
February 6, 1956
City Council
4305 Santa Fe Avenue
Vernon 58, California
Re: Procedures to amend contract of the
City of Vernon for participating in
State Employees' Retirement System
To the Honorable City Council:
Pursuant to plans previously discussed with the City Council,
I flew to Sacramento Friday, February 3, 1956, to obtain cur-
rent information with regard to the above subject.
While at the offices of the Retirement Board I was supplied
with the necessary forms for resolution of intention, which
would be the first step to be undertaken from a procedural
standpoint, should the Council elect at this time to proceed
with the amendment of the contract.
The City's retirement system cost was budgeted in the 1955-56
budget at $100,000, and the quotation of the Retirement Board
for the amendments requested by the City is $75,027.68.
The form of resolution of intention required by the State Re-
tirement Board is submitted, in duplicate, with this letter
and numbered, "Resolution No. 1893 of the City Council". One
executed copy is to be returned to the State Retirement Board.
After the resolution of intention has been acted upon by the
Council and an executed copy of that resolution has been for-
warded to the State Employees' Retirement System, the proper
procedure is to hold an election among the affected City em-
ployees. (In this instance, the proposed amendments are
deemed to affect only miscellaneous employees.) The election
is presided over by the City Clerk's office, and results of
the election are certified by the City Clerk to the City
Council. If the results of the election are favorable to the
- CITY ~ VERNON CALIFORNIA
IN REPLY REFER TO:
City Council
-2-
6 Feb 56
proposed amendments and if the City Council then decides to
adopt the amendments, it does so by passing a final resolution
authorizing the execution of the amendment on behalf of the
City.
If the foregoing procedure seems somewhat complicated, it is
important to bear in mind that the matter before the Council
at this time is merely to set the initial procedures in motion
by the passage of a resolution of intention, after which there
will be ample time for a visit by a member of the staff of the
State Retirement Board to address the employees as a group and
individually with reference to the amendments. There will also
be time to have the City Attorney check on the procedures to be
followed in setting up the election.
It is recommended that, if the Council should see its way
clear to act favorably on the proposed amendment,
1. An executed copy of the resolution of intention be for-
warded to the State Employees' Retirement System;
2. This matter be referred to the City Attorney and the Ad-
ministrative Assistant for the purpose of working out the
detailed procedures to be followed subsequently, including
the obtaining of an appearance by a member of the State
Retirement Board to address the City employees concerning
the amendment and making the proper arrangements for an
election to be held among the affected employees.
Yours very truly,
Enclosures
JBM:dme
strative Assistant
he City Council
CITY OF VEllNON
CA,LIFORNIA
Fcbrual"1 10. 1956
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f:':nolo~; you. will t: 'xeouted FlY . of Resolution
No. 1893 of the Oity Oouncilot 01ty: Vem. entitled.
"A Resoluti.m of Intent1.onto IaPP ..' tto oontra.ct.
Prorid1ng. tor pani.Ol.~', '. ...... -~.... Stat .' flo. ..1"s'. Retirement
~;yst.emJt I whioh was ~W"'ted .o~~'~1956.
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By
State E.1plo;'(ee.' ~t~nt'S'J8ttb"fl
1)20 K Street
SacftU;i.ento 14, CalU'oma
Attentiont Hr. I&tNn Ha:ieht
lien tlefi'lAn I
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F. A. Ziemer,
Deputy City Clerk