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HomeMy WebLinkAbout6.3 PERS Amendment 1959 Survivor Benefit 7�-v- o CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: October 12, 1987 SUBJECT Public Employees Retirement System (PERS) Amendment to Agreement — 1959 Survivors Benefit EXHIBITS ATTACHED Ordinance Amending Agreement Summary of Benefit Provisions RECOMMENDATION (:I 1 ) Conduct a public hearing V 2) Waive the Reading and adopt the Ordinance FINANCIAL STATEMENT: The maximum City cost of the amendment will be $3 . 50 per month for each covered employee . If all eligible positions elect coverage , the annual cost to the City is approximately $1 , 176. DESCRIPTION At the regular City Council meeting on September 14 , 1987 , the Council introduced an Ordinance amending the agreement with the Public Employees Retirement System. The City Council also adopted a Resolution of Intention. PERS law requires a 20 day waiting period between the adoption of the Resolution of Intention and the final adoption of the Ordinance . The contract amendment would provide the Third Level — 1959 Survivor ' s Benefit . This benefit approximately duplicates the benefits provided to individuals covered by the Federal Social Security System. Under the City ' s current agreement , the dependents of an employee who dies receive only a basic death benefit . The 1959 Survivor Benefit will provide monthly benefits to the spouse and/or dependent children of an employee who dies . This benefit is paid in additon to the Basic Death Benefit . A summary of the benefit is attached to the Staff report . Staff would recommend that the City Council conduct a public hearing , waive the reading , and adopt the ordinance . ---------------------------------------------------------------------------- COPIES TO : ITEM N0 . � ORDINANCE NO. - 87 AN ORDINANCE OF THE CITY OF DUBLIN ******************* AMENDING THE AGREEMENT BETWEEN THE CITY OF DUBLIN AND THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO INCLUDE THE 1959 SURVIVOR'S BENEFIT An Ordinance of the City Council of the City of Dublin authorizing an Amendment to the Contract between the City of Dublin and the Board of Administration of the California Public Employees ' Retirement System. The City Council of the City of Dublin does ordain as follows: Section 1. That an amendment to the Contract between the City of Dublin and the Board of Administration, California Public Employees ' Retirement System is hereby authorized, a copy of said agreement being attached hereto, marked "Exhibit A", and by such reference made a part hereof as though herein set out in full. Section 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. Section 3. This Ordinance shall take effect 30 days after the date e of its adoption and thenceforth and thereafter the same shall be in full force and effect. PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin on this day of , 1987 by the following vote: AYES: NOES: ABSENT: Mayor ATTEST: City Clerk k-z t A AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF DUBLIN The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of above public agency, herein- after referred to as Public Agency, having entered into a contract effective February 1, 1983, and witnessed December 13, 1982, and as amended effective April 12, 1986, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10, are hereby stricken from said contract as executed effective April 12, 1986, and hereby replaced by the following paragraphs numbered 1 through 10 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 60 for local miscellaneous members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after February 1, 1983 making its employees as hereinafter provided, members of said System subject to all provisions of the Public 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 those, which by express provisions thereof, apply only on the election of a contract- ing agency. 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. Employees other than local safety members (herein referred to as local miscellaneous members) . 4. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: a. FIRE FIGHTERS; AND b. POLICE OFFICERS. .1:.1..1,.aG:.✓w.Jyu:sNwmiflti+Yldw.'.JK.<...lil.i....-a%�d:w".ik1'.M'eKfW r•'°.:G w....:r..{'__.W:S+tt^.E'X�:i:ciG:NT.++s:.YM:u4r'1w3.:f.::::iWw'�:Z31"u}t:lf[.'1. a-aa_�.:J.i"L'.Ski..YY9Y241YGGiHbu�[isifjf;.aYiS�u:[a.K4w+NS.2".1:SiS7iili.wd.":ui.:'+w:.:i.:1�'./i' . 1 5. The fraction of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60 Full) . 6. The following additional provisions of the Public Employees' Retirement Law, which apply only upon election of a contracting agency, shall apply to the Public Agency and its employees: a. Section 20835.1 (Limits Prior Service Credit to Members Employed on Contract Date) : b. Sections 21380 - 21387 (1959 Survivor Program) including Section 21382.4 (Third Level of 1959 Survivor Benefits) . 7. Public Agency, in accordance with Government Code Section 20759, shall not be considered an "employer" for purposes of the Public Employees' Retirement Law. Contributions of the Public Agency shall be fixed and determined as provided in Government Code Section 20759, and such contributions hereafter made shall be held by the Board as provided in Government Code Section 20759. 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 0.159 percent until June 30, 2007 on account of the liability for prior service benefits. (Subject to annual change. ) (2) 5.929 percent until June 30, 2011 on account of the liability for current service benefits. (Subject to annual change. ) b. Public Agency shall contribute $3.50 per employee on account of the liability for the 1959 Survivor Program provided under Section 21382.4 of said Retirement Law. (Subject to annual change. ) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for beneficiaries of all local miscellaneous members. C. A reasonable amount, as fixed by the Board, payable in one in- stallment within 60 days of date of contract 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 periodic investigation and valuations required by law. d. A reasonable amount, as fixed by the Board, payable in one in- stallment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 9. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 10. Contributions 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 contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the 21st day of November 19 87 . BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE CITY OF DUBLIN BY BY SANDRA C. LUND Presiding Officer ASSISTANT EXECUTIVE OFFICER BENEFIT SERVICES Witness Date Attest: Clerk PERS-CON-702 (AMENDMENT) (Rev. 9/86) Summary of Benefit Provisions Third Level 1959 Survivor Benefits Government Code Sections 21380-21387, including Section 21382.4 General: The 1959 Survivor Benefits are paid monthly to certain survivors of a member who dies before retirement. The covered member's survivors receive the following monthly allowances regardless of whether the member was eligible to retire at the time of death. Surviving spouse with two or more dependent children; or three or more dependent children, alone.. ... . .. ..... . ....... .... . ...... . .$840 Surviving spouse with one dependent child; or two dependent children, alone.. ... .. .... .. . .. .. .. ... .... . ... ..... ..... .. ..... ..... .. . .. .$700 Surviving spouse, alone, age 62 or over; dependent mother and depen- dent father, age 62 or over; or one dependent child..... . ... . . . .$350 Definitions of Survivors 1. A dependent child is one under the age of 22 and unmarried, or a disabled child of any age whose disability began before and has continued without interruption after attainment of age 22. 2. A spouse ceases to be eligible for a benefit upon remarriage. 3. A surviving spouse must be married to the member prior to the occurrance of the injury or onset of the illness which resulted in death. Concurrent Benefits The 1959 Survivor Benefits would be payable in addition to the following benefits, if applicable: Basic Death Benefit — This benefit provided is a refund of the member's accumulated contributions, with interest, plus an additional amount equal to one month's salary for each year of service, up to a maximum of six months salary. 1957 Survivor Benefit — This benefit is a monthly allowance equal to one—half of what the unmodified retirement allowance would have been had the member been retired at the time of death. . Special Death Benefit (applies to local safety members only) — This benefit is a monthly allowance equal to one—half of your "final compensa- tion". The 1959 Survivor Benefits payable in any month shall be reduced by the amount of the special death benefit allowance. Cost To The Employee — The cost to the employee is $2.00 monthly (non- refundable), in addition to normal retirement contributions. PERS—CON-24b 010019 (3/86)