Resolution No. 4184
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RESOLUTION NO. 4184
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2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON OF INTENTIO
TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF -ADMINIS-
:5 TRATION OF THE PUBLIC EMPLOYEES' RETIRltMENT SYSTEM AND 'rHECITY
COUNCIL OF THE CITY OF VERNON
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5 THE CITY COUNCIL OF THE CITY OF VERNON RESOLVES AS FOLLOWS:
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6 WHEREAS, the Public Employees' Retirement Law permits the
7 participation of public agencies and their employees in the Public
8 Emp loyees' Retirement System by the execution of a contract, and
9 sets forth the procedure by which said public agencies may elect
10 to subject themselves and their employees to amendments to said
11 law; and
12 WHEREAS, one of the steps required in the procedure to
13 amend this contract is the adoption by the legislative body of
14 the public agency of a &esolution giving notice of its intention
15 to approve an amendment to said contract, which Resolution shall
16 contain a summary of the changes proposed in said contract; and
17 WHEREAS, attached is a summary of the major provisions
18 of the proposed plan;
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NOW, THEREFORE, BE IT RESOLVED:
SECTION 1: That the City Council of the City of Vernon
21 gives, and it does hereby give, notice of intention to approve an
22 amendment to contract between said City Council and the Board of
23 Administration of the Public Employees' Retirement System, a copy
24 of said amendment and a stlmPJary of the major provisions of the
25 proposed change being attached hereto, marked Exhibits "An and
26 "B", and by this reference made a part hereof.
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SECTION 2: The City Clerk of the City of Vernon shall
28 certify to the passage of this Resolution and thereupon and there-
29 after the same shall be in full force and effect.
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ADOPTED AND APPROVED this
6th day of November, 1973.
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LeonisC.M burg,
Mayor Pro Tempore
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EXHIBIT A
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AMF..NDr!.ENT TO conTRACT BET',VE~ THE
BOARD OF A,D~,mn':ST?ATIOIi
PUBLIC E:.JPLOYEES' RETI1Ei,~ENT SYSTEM
AUD Till:
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CITY COUliCIL
OF THE
CITY OF VEillTON
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The Board of Adninistration, Public Employees' Retirement System, hereinafter
referred to as PAJard end the CITY COUliCIL of the CITY OF v-s.:mo:'l, hereinafter referred
to as Public A~ency r~vinz entered into a con~Tact underda~e of October 23, 1948,
effective November 1, 1948, and as amended effecti~e April 1, 1956, October 1, 1960,
July 1, 1966, and October 1, 1972, Rnd as provided by C~2.pters 170 and 316, Sta~tes
of 1971, which provide for participatio:J. of Public Agency in said System, Boarci &'1d
Public Agency hereby agree as follows:
A. Paragraphs 1 through 10 are hereby stricken from said contract as executed
effectj.ve liovember 1, 1948, and are hereby replaced by the follo?nng para-
graphs numbered 1 through 8 inclusive:
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1. All words and terms used herein which are defined in the Public Employ-
ees' Retirement Law shall haye ~he mear..ing as defined therein unless
otherwise speCifically provided. lINom.al ~etirement age" shall mean
age 60 for miscellaneous members, age 55 for local policemen, and age
50 for local firemen.
2. Public Agency shall participate in the Public Employees' Retirement
System fron and after November 1, 1948, makL~g its employees as here-
inafter provided, members of said system subject to all proviaioTIa
of the Public Employees' Retirement La-.v except such as ~ply 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 mem-
bers 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 follovr~g employees shall be excluded from membership in said
Retirement System:
NO ADDITIONAL EXCLUSIONS
Exhibit "A"
Ret. Form 702-1
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4. ~h~ fraction of final conpensation to be provided ~or each year of
credited prior and current serv~ce ~s a miscellaneous member upon
retirement at nor:n..al retirement age shall be that provided in
Section 21251.13 of said Retirement Law.
5. The following additional provisions of the Public Employees' Retire-
ment Law which apply only upon election of a contractir~ agency shall
apply to the Public Agency a-Tld its enployees:
a. The fraction of final compensation to be provided for each year
of credited prior and current service as a local safety Demoer
shall be that provided in Section 21252.1 of said Retire:1ent Law
for local policemen and Section 21252.01 fo;;:, local firemen.
b. Section 21380-7 (providing for allo....ranees for survivors of reenbers
covered under the prograc upon death before retirement).
c. Section 21263 (providing upon death of a local miscellaneous and
safety member ,'.'ho re tired for r;ervice or dis3.'t;i.li ty for the con-
tinuation of one-half the retirement allowance to certain survivors).
6. Public Agency shall contribute to said Retirement System as follows:
a. With respect to miscellaneous members, the agency shall contri-
bute the fOllOwing percentages of uonthly salaries earned as
miscellaneous members of said System:
(1) 0.40 percent until June 30, 2000 on account of the liability
for prior service benefits.
(2) lO.21 percent on account of the liability for current service
benefi te.
(3) l.39 percent on account of the liability for the 1959 Survivor
p-rogram.
b. With respect to local safety members, the agency shall contribute
the following percentages of monthly salaries earned as local
eafety members of said Sys1;em:
(1) '). S!+S ::,ercent until June 30, 200'J on account of the liability
for prior service benefits.
'(2) 20.297 percent on account of the liability for current service
benefi ts.
(3) .145 percent on account of the 11abili ty for the 1959 Survivor
program.
c. A reasonable amount per annum, as fixed by Board to cover the costs
of administering said Sys tem as i t ~..ffec'ts the emoloyees of l.:>uolic
Agency, not includir~ the cOs~S of ~pecial valuations or or the
periodical investigation and valuation required by law.
Ret. Form 702-2
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d. A reasonable amount as fixed by the Board, payable in one instaJ.l-
ment as ~~e occasior.s arise, to cover costs of special valuations
on account of e~ployees of Public Agency, and costs of tie period-
ical investigation and valuation required by law.
7. Contributions required of Public Agency and its employees shall be
subject to adjustment oy Eoard on account of amenillments to ~c Public
.E:mployees' 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.
8. Contributions reqtured of Public Agency ~~d its employees shall be
paid by Public Agency to the Hetirement System. wi thin thirty days
after the end of t.i-J.e period to which said con tri ba tions refer. If
more or less than the correct ~j.Dunt of contribution3 is paid for
any period, proper ad,iustment shall be m:1.de in connection with CLtb-
sequent re;:rl. tt~"1ces, or adjus't'.:wnts on account of errors in con-cri-
butions required of any e=:ola,:ree and Board. Payments by Public Agency
to Board n<-'1.y be made in the :::'O::"ill of warrants, bank checks, bank ciro.::'<;s,
certified cheeks, money orders, or cash.
B. Th:i.s amendment shall be attached to said contract and shall become effective
on the day of .
Witness our hands this
day of
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BOARD OF Am,rrnrSTRATIOU
PUBLIC EMPLOYI.;ES I RETlflE:,lENT SYSTEM
CITY COUnCIL
OF THE
CITY OF VERNON
BY
William E. Payne, Executive Officer
BY
Presiding Officer .
Attest:
Clerk
Ret. Fora. 702-3
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EXHIBIT B
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SUHHARY OF ~1AJOR PROVISIONS
Local Firemen - - - - 2% at 50
Retirement Program
f.1E1'-tBERSHIP
4 ~!'embership is co~pulsory for all e~ployees, other than elective officials, who
arc enployed or.e-half ti;;:e or more except those excluded under the contract.
SERVICE RETIPP'!E~;T
The earliest retirement age is 50; the normal retirement age is 50~ and the
compulsory retireoent age is 60. A Local Fireman may retire any time after
age 50 provided he has at least 5 years of service.
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The monthly income is determined by age at retirement. years of credited service,
and !lfinal compensaticn". The latter term - means the average monthly salary (excluding
overtime) earned during the final 36 consecutive months unless member specifically
requests another 36 consecutive month period.
The unmodified life allowance will be ':2% of final compensation:' for each year of
safety service upon retirement at age SO with increasing percentages to a maximum of
2.7% at retirement at age 55. Service retirement benefit is subject to a limitation
of 75% of final compensation.
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A minimum service retirement allowance of SIOa per month is guaranteed upon
compulsory retirement with credit for prior service.
DISABI UTY RETIPD1ENT
An employee becoming disabled to the extent that he is incanable of performing
. his duties shall be retired for disability. liis disability \...i11 bc either e:1iplo~ent
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connected (industrial disability) or otherwise (nonindustrial disability).
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An employee who becomes disabled while a ~eDber of t~is SystCD for reasons
arising out of his c:.'.p1 oy::1cnt , \'li11 be eligible for a life inccme of fifty (50g..i) !1er-
cent of his final co~ncnsation. If his dis~bilitv is s~ch that he is also cntitled
to a disability income from Social Security, the ~tatc System bencfit will Le reduced
by the amount ~f his Social Security benefit. .
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An employee becoming disnbled for reasons not connected with his employment shall
be eligible for disability retirement provided he has at least 5 years of service;
such disability allowance is eq11al to 1.8% of final compensation for each year of
service, with a guarantee of 1/3 of such final compensation for most employees who have
rendered at least 10 years of service. The "ordinary" disability retirement allowance
shall under no circ~stances exceed the service retirement allowance which would
become payable at age 60 if employment could be continued to that age.
DEATH BENEFITS
Death Before Retirement
Basic Death Benefit 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 nore. For those who die before completing six years
of membership, the benefi t is one month I 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 T'i1ember'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 a."1d 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 follow-
ing percentages of "final compensation" so long as the widow lives
and does not remarry:
Widow with 3 or more children under 18
Widow with 2 children under 18
Widow wi th 1 child under 18
75%
70%
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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 can elect to
receive either the basic death benefit or a monthly income equal to
one-half the unmodified retirement allowance the employee was eligible
for on the date of his death. The monthly incone lasts until the
widow's death or remarriage with a guarantee that the System will pay
as much as under the basic death benefit.
1959 Survivor Benefit A mcnthly allowance shall be paid to certain sur-
vivors of a member who dies before retirement.
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Death After Retirement
. The death benefit is $500. This is in addition to any payments which
might be made under an optional retirement benefit chosen by the
member at retirement.
One-half Continuance provides upon the death of a local safety member who
has retired for service, or disability, for the
continuation of one-half the retirement allovance to certain survivors.
TERMINATION OF EMPLOYMENT
Upon termination of employment, an employee with at least 5 years of service 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 terminatin~ his membership in the System and receiving no retirement
benefits. Except, (1) a member with less than 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 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) is 9% of salary earned,
exclusive of overtime, on the date this formula becomes effective.
The employer also contributes toward the cost of the benefits. The amount con-
tributed 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 industrial death and disability benefits.
All contribution rates are subject to revision by the Board of Administration.
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1 I STATE OF CAL IFORNIA
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COUNTY OF LOS ANGELES )
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I, F. A. ZIEMER, City Clerk of the City of Vernon, do
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hereby certify that the foregoing resolution, being Resolution
No. 4184 ,was duly adopted by the City Council of the City of
Vernon, and approved by the Mayor of said City, at a regular
meeting of the City Council held on
November 6, 1973
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City Clerk