HomeMy WebLinkAboutRES NO 11-72RESOLUTION NO. 11-72
A RESOLUTION OF INTENTION TO APPROVE AN
AMENDMENT TO CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION OF THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEMAND THE CITY COUNCIL OF
THE CITY OF BAKERSFIELD.
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 procedure 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 resolution giving notice of its intention to
approve an amendment to said contract, which resolution shall con-
tain a summary of the changes proposed 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 Bakersfield 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 proposed change being attached hereto,
marked Exhibits '~" and "B" and by this reference made a part hereof.
o0o
I HEREBY CERTIFY that the,foregoing Resolution was passed
and adopted by the Council of the City of Bakersfield at a regular
meeting thereof held on the 13th day of March, 1972, by the following
vote:
AYES: COUNCILMEN BL,EECKER, HEISEY, MEDDERS, REES, RUCKER, THOMA,% V~III'I'EMORE
NOES: COUNCILMEN:
ABSENT COUNCILMEN~
ABSTAINING COUNCILMEN:
Council of the City of Bakersfield
APPROVED this
kersfield
APPROVED:
CITY ~T
CiTY
CITY OF B,'~CEPSFIELD
POOR ORIGINAL
THe 5sard of AimJumi~t~'ation, Public ~nployee~, Rctt~,a~sn~Syst~m,
re~d to ~s ~ard and the C~Y C~UMOiL'of th~ CRY OF B~SFE~, herei~:~r
refcrr~i to ~ hbllc Agency, ~-h~ entered h~o ~ cont~ac~ u~der ~te of J~ 17,
19~, ~fo~ve J~y i~ 19~, ~d as ~nded effective j~mu~7 l, 1950, November
1957, 0cto~r 1, 195S, April 1, 1965~ Octo~ar 1, 1967, and janua~ 1, 1971, ~d
prodded by Cha~.e~ 170, St~tu~es of 19~ v~ich provides for pa~icipatt~n of
A. Po~agra~s 1 th~ouF~ E m'e h~ek~ stricken f~ said c~tmct as
~fective J~y t, !0'-4 ~d ~ hereby x~ephc~d '~ the fono,~fh~g
1.. ;~ ~Ms ~ tern~s used hereh wl~ich ~-e defh~ h the ~b!ie Zmp!oyees,
R~irement hw shall have %he ~g as def~ thefeb ~les oh-hen-rise
epecifica]/y ~ovh!~. '~Nor~ reti~nt age~ sb~ ~n aEo ~ for
.m~ce~eoue m~-Jo~-s ~ a~{c 5~ fO~ lo~ safety
2. ~blic AEmqcy sb~! ~,ICipate h the ~blic beloyee~, Retir,~nent
System from ~und ~%~- O~y 1, t9~, m~king its ~sD!oyees as
after pz~ddcd, me~ers of ~d sys~a ~ubJcet to'all provisions of
the ~ablic El=~0~yees, Re:bh~ont l~ except such as apply on3~ on
ciection of a cont~eti~g agency ~ are not y~o-~ided for herein
to ~ e~nt~sn~$ to said Ie;w he~fftor enact~ ~cep~ such as by
¢<px'ess ~'o~ion thez~f apply only cn the election of contractL~
~loyees of T~bLic Ag~my h the foiledring c!~3ses sh~ become
of ss, l~ ~tire$~;~ Systci~.'lxcept such f~ each such ~ss as ~e ~xcl~d
by law or "Lh~
b. D~C~.I ~emen (heroin referred to as ~c~ s~ety m~bers);
C. ~mp!~yeOs other th~ loc,~ f~,~ ~d iocsl ~licem~ (herein
The fo!!~3mg ~:~ploy~es sha~ l~ e~Clt,aed'fi~ membership h se~d Sys t ,m:
Ret.. ~brm l?O2;1
the Pa]>li~ r~:$1oyees® fletire:~enb S~T.t~md~ t]~
t~ tr~fc~'~ to t~e ~tc ~raployees~ ~ct~'eaent
~ d~xs ~ter the eff~tive e~e of t~e cgn~r~-5 ej~
""~'~. jT~ '~ l~l~n o~ the assas ~o t~sfe~r~ ~e~ich re~es~Y~ the
'.~ a~c~t-~l cc~t~butiens (p.i~ ~tcrest thorough) r~r~l of the
e~plc~es ~der said !Oc~ ~ystm~ ~h~ be credit~ to the
~be~Mp aceerror of ~ach s~ch emp!~e m~der the h~c Emp!oy~s'
0
0
0
$
The fraction o~ ~msl com~noation to b~ p~dded for ~ch y~- of
cr~:Y~' prior ~l c'~t oor~ice as ~ ~isce,~n~us ~nber
~t~r~n~ at nora~ ret.h'~ent age ~E ~ 1/~0
~i~ a p~vided ~ Section ~,13 of ~:1 ~t~a~n~
The fi~d. ica. of f~a! c~Dm~tion ~ be D~vid~ for each y~ of
credited pl-io~ s~d cur~nt em'~ce as a l~al ~f~'by
~ detem~hed h ac:ce~e ~h Section ~2.1 of sa~ P:et~ent'
~nt~ibuti.~$ D~r misceLl~ sad e~oty r~omm eh~ be subJ~
~ S~t~i~ 2~O3 and 2~Oa respective!y, el' ~.Id
The folR~wing addltion~, p~visions of the Public [mI~oyees' PBttr~
ment ~w ~ii~i apply only ui>on elect. io~of a ~nt~othg ag~icy
apP~ to the i~hEc ~ y a'zd it~
reti~e;a~mt a~e ~ local ~e,f~y ~L~ul~,a ~dth ~nefit
confronting ~'ior to ~e ~ ~bJe~ to
~ sctus~i~ ~scount ),
b. S~ctf.cn 2~I,5 (proVldLu8 thaZt y~ of satdee
~aber of tl'~ Pakers~oE Fire DoI~nent Disab~ty a~l Eetir~
m~t Syst~n prior to the effective date of this &~=~m~ %o con-
ti~t shall be inc!~ la the ccmF~tation of the b~iO death
~?n~It p~vid~l ~ Section ~6! upon the dr~h Of
~ ~5 ~ ~m~r o~ said local S~~' .. )
C, Seal>ion ~26~. (~ovid~ u~n d~th ef ~ ioc~
~-~ rcti~d for so~!ce or Lnd~tri~ ~sabiltty for the con-
t~.uati~ of one-h~f the ret~e~ent $~ow~cs to
9- ~ic Agency sk~. contribut-o to aid
With re~-peCt tO miscellaneous members, the pu~!ic agency .sha~.
c0~i.r~>ute the following pm-contaSes of
~ ::~cel~:ncOus m~ers of said System:
(i) O. ll Drcent ,jnti! dram 30, 19~D on g~count of the ~bility
for [~ior ser~ce t~nefits,
(2) 7.65 pe~e~t on acc~t of the ~)aL~-ty
~nefits said ~rcentage i~D'~g flx~ by Section Z~50 of the
Rcti~m~t
With ~es~,~ct to local s-afety members, %he public ~genq s~Ll
contrihte tho foHo-~h~g ]~Pcentages of mon%~ sa~i~ s~
~ local ~ety nm~c~ of ~id Systems:
(1) 1.570 r~meat unt~ Ju~ 30~ 2C~2 on acco~mt of the liab~ty
for B'ior ss~ico bnsfits, less O.L16~ of tot~ s~ies
p~id to members for e~ch ~iCO~OCO of a~so~s tr~sfen,~ to
the I~bLlc lbp!oyees, Eet~-a~ant S~tem to the ~cnt such
'tr~sferz'~l .assets exceo~ the acc~la'b~ loc~ system con-
(2) 12.403 ps:~ce~t on acce~nt of the lhbHity fo~ c~n~
se~Ice benefits.
e, A re,?~onab!e ~om~,% per mmva, as fi~:ed try E-'.oard to cove~. the
. c.os~e of a~dster~g ~,id S~tsm as it ~fe=ts the ~p~yeee
of i~c ~gency,. ~Z including the costs of s~c~l ~tions
or ~hs Ferio~ca! hvestige~ions ~d ~l~.tion ~~ by law,
r~o~de~ that said szo~3nt sh~J1 l~ dctor~i~M on t]~e basis of
the n,,~bs~ of em~yecs or Pubic Agency ~ho are rcpo~ as
members on a I~ dcsi&~t~d ~y the Svst~
· ~ cove~]~g one n~onth
of e~-~ ye~, o~, with ~spect ~ the first year of p~ici~atiOn,
On ~he eff~tive ~ato of' s~d ~'~iciiation.
d. A reasC~ab!e ~t as fh~ by the Boa~, payable h one
~nt ss the occasion~ arise, to cove~ cos%s of s~Cie~ v~t~t~ms
on ac~m~ of ~pl~s Of Public Agency, and costs of th~ ~ric~-
n ~.~. gat~cn ~md ~tion req~ed by law.
~tribut~nc ~~d of ~3olic AE~cy ~d i~s er~loyees sh~ ~
subject to adJ~tmsn~ ~y Eoa~ on aeco~ of an~nts ~ th~ ~blic
E~:~!oye~, i~t~cmer~t law, ~d on acCo~m% of ~$~rience m~der the
Eet~m~nt S~tem, as det~~]' ky'tbe psri~li~l h~tigation
Contrillions toque!red of ~b!ic ~ ~y a~l its emn!ovses s~ll be
paid ~j ~b!ic A[~,ncy %o the Reth'e~ent System ~-~t~,~ thirty
~er the oral of th~ period to ~-~hich said contributic~as refer.
~re 'o? less than thQ ~%~cct a:i~l~nt of contributicm Ls ]~d for
re. trances or adJ~tment cn aceram% o~ errors iu cor~ributions
q,~red of ~y ~npl~-~ r~F be ~e h~ direct cash pe,~ts betwo,~
f~ade Ln thi~ fo:m of ~r~t?~ts, bcmk checks, bank dr~'ts, certEicd
~hock5, ~n~y o~-dei~s~ or cash.
WLllis~a E.. Payno, ~uti~ Office~
Ret. Foxy, 702-3
EXHIBIT B
SF.~:!AP, Y OF MAJOR PROVISIONS
Local Safety' Members - ~e-Half Pay at SS
Retirement Progrmn
MEMBE RSI I I P
N~nbership is comFulsory for all employees, other than elected officials, who
are employed one-half time or more, except those excluded. under the contract.
SERVICE PJETIP~MENT
The earliest retirement age is 50, discounted b~sis; the normal retirement age
is S5; and the compulsory retirement age is 65, An e;nployee may retire any time
after age 50 provided he has at least 5 years of service or has attained the co;n-
pulsor! retirement age of 65,
At mental retirement at age 55 the trine-edified lifo allowance will be S0% of
"final compensation" for those who have completed 20 or more years of service
continuously to that age, Those who have conrplet~d less than 20 years of service
after 55 will receive m~ untoedified life allowance of 'two and one-half (2!~%) percent
of final compensation for each year of service so rendered,
'F]3~al compensation:: is average monthly salary (excluding overtime) earned
during th.e final 36 consecutive months unless r,.mmber specifically requests another
36 consecutive months period,
A minimum se.~wice retlre~ent 'allowance of $100 per ~:~onth is guaranteed upon
compulsory retirement with cre. dit for prior service,
DISABILITY I~TIR~T~ff.,NT
An ~nployee becoming disabled to the extent that he is 'incapable of performing
his duties sha].l be retired for disability, His disability will be either emtfioy-
ment connected (industrial disability) or otherwise (nonindustrial disability).
An ~nployee ~.~o becor:ms disabled Cdlea member of this System for reasons
arising out of his emplo)~ent, will be eligible for a life income of fifty (50%)
percent of h~s final compcnsslion,
~n employee becoming disabled 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 equal to 1.5% of final compensation for each
year of service, with a guarm~tee of one-third of such final compensation for most
employees who have rendered at le~t 10 years of service. ~e "ordinary" disability
retireraent allo~ance shall under no circumstances exceed the service retiredneat
allowands which would become payable at age 55 if emplo>~ent could be continued to
that age.
DEATIi BEr-IEFITS
Death Before Retirement
Basic Death Benefit This benefit is a refund of the member's acc~nulated
contributions plus. six months' salary provided he has been a member
for six years or more. For those who die before completing six years
of membership, the benefit is one month's salary for e~.ch year of
membership plus reftmd of contributions. The salary referred to is
that ea~.ed during the year preceding death. Prior service does not
count toward this benefit.
Industrial Death If death is service-connected in the judooment of the
.... '~ff~rial Accident Com~ission, a monthly income is paid to the widow
for life (or until remarriage) instead ef th~ above basic death benefit,
However, if She is also eligible for survivor benefits from Social
Security because of the nember's death, the State system benefit will be
re&med by the ammmt of such Social Security so long as Social Security
~enefits are payable (usually until the youngest c~ild reaches 18 ~nd
after the widow reaches age 62). The total, includin~ Social Security~-
~,ould be 56% of :'final compensation". If deD. th was caused by external
violence or physical force, th-D total benefit (including Social
Security) would be increased to the following percentages of ' final
compensation~' so long as the widow lives and does not rema~Ty:
~lidow ~vith 5 or more children under 18 75%
Widow with 2 children tm. aer 18 70%
l~idow ~,~ith 1 child under 18 62~~
1957 Survivor Benefit Employees with 5 o~ mo~e years of service v~ho have"
.... reached ~ m~,~num age for service retirentent have further death .:
protection under this item. ttere the surviving wido~,z c~ elect to
receive either the basic death benefit or a monthly income equal. to
one-half the ~modified retirement allowance the employee was eligible
for on the date of his death. The monthly income lasts until the
~ido~,'s death or remarriage with a guarantee that the System will pay
~s much aS ~der the basic death benefit.
Death After R,~tirement
~e death benef].t t.s $500 if death occurs after retirement. This a.,uount.WiiI
be in addition to any paysheats v;hich might be made ~der an optional
retirement benerfit chosen by the ~ember at his retirement.
One-half Continuance provides upon the death of a local safety member .
who has retired for service, or industrial disability, for the
continuation of one-half the reti~ment allowance to certain survivors.
TEP~,IlNATION OF E!.ItPLOY..'....~NT
t~on termination of ~ployment, an employee with at lea3t S years of service
may either leave his contributions with ~3~e System and receive, upon attaining
retirement age, the retirement benefit he has earned, or L,e may withdraw his contri-
butions (plus interest), thus, ten~inating his membership in the System and receiving
· no retirement benefits., Except, (1) a ~embor with less than S years. of service shall
not h~ve the privilege of leaving his contributions with the System, but shall auto-
matically have his contributions, plus interest, refunded upon termination of employ-
ment and (2) ~ member. ~.~ho is transferring to employment with another agency ~hi~h is
c6vered under ~he system ·shall not have the right of withdrawing his accumulated
'contributions.
E'4PLOYEE CONTRIBUTIONS
Each member makes monthly contributions to the System which are deducted from
his salary. The rate of contribution ~ercentage of pay) depenas upon a member's
sex and age at entry into safety service. Such contributions, for male ~?.ployees,
currently range from a mtnimtnn of 5.64% of salary to a D~aximura of 12.55% of salary.
The employer also contributes toward the cost of the benefits. 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 sen, ice benefits, the industrial death and disability benefits.
All contribution rates are subject to 'revision by the Board of Administration.