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HomeMy WebLinkAbout6.5 Employee Retirement Program '12p--(oO Gtj of DUBAP Co DO- D AGENDA STATEMENT Meeting Date: December 13, 1982 SUBJECT : Employee Retirement Program EXHIBITS ATTACHED : Ordinance; Contract; Summary of Major Provisions RECOMMENDATION Waive reading and adopt ordinance CA) 115: - FINANCIAL STATEMENT: Annual estimated cost $7,887; sufficient funds have been budgeted. DESCRIPTION : At its meeting of November 8, 1982 the City Council adopted a Resolution of Intention and introduced an ordinance authorizing the adoption and execution of a contract between the City of Dublin and the Public Employee' s Retirement System. This contract would provide retirement coverage for employees under the Public Employee' s Retirement System (PERS) . It is Staff' s recommendation that the City Council complete the membership process, by adopting the attached ordinance, which authorizes the adoption and execution of the contract with PERS. COPIES TO: ITEM NO. •Vr • ORDINANCE NO. AN ORDINANCE OF THE CITY OF DUBLIN AUTHORIZING THE ADOPTION AND EXECUTION OF A 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. ADOPTION OF CONTRACT The adoption of the Contract, a copy of which is attached hereto as "Exhibit A" and incorporated herein, between the City Council of the City of Dublin and the Board of Administration of the California Public Employees ' Retirement System is hereby authorized. Section 2 . EXECUTION OF CONTRACT The Mayor of the City of Dublin is hereby authorized, empowered and directed to execute said Contract for and on behalf of the City of Dublin. Section 3 . EFFECT; POSTING This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expira- tion of fifteen (15) days from the passage thereof , the City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 38933 of the Government Code of the State of California, PASSED AND ADOPTED by the City Council of the City of Dublin on this day of , 1982 , by the following votes : AYES: NOES: ABSENT: Mayor Attest: By City Clerk CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF DUBLIN In consideration of the covenants and agreement hereafter contained and on the part of both parties to be kept and performed, the governing body of above public agency, hereafter referred to as "Public Agency", and the Board of Administration, Public Employees' Retirement System, hereafter referred to as "Board", hereby agree as follows: 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 such as by express provisions thereof apply only on the election of contracting agencies. 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). 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: ELECTED OFFICIALS 4. 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) . 0 5. Public Agency, in accordance with Section 20759.1 Government Code, shall not be considered an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law. Contributions of the Public Agency shall be fixed and determined as provided in Section 20759, Government Code, and such contributions hereafter made shall be held by the Board as provided in Section 20759, Government Code. 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 monthly salaries earned as miscellaneous members of said Retirement System: (1 ) 0.073 percent until June. 30, 2007 on account of the liability for prior service benefits. (2) 7.065 percent on account of the liability for current service benefits. b. 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. c. 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. 7. 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. 8. 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, or adjustments on account of errors in contributions required of any employee may be made by direct cash payments between the employee and the Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders or cash. Witness our hands the day of , 19 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE CITY OF DUBLIN BY BY CARL J. BLECHINGER, EXECUTIVE OFFICER Presiding Officer Approved as to form: Attest: 1, te/.. ' _ Ae17.7air C thia G. B sem gal Office, Date Clerk PERS CON-702 • 0 SUMMARY OF MAJOR PROVISIONS 2% @ 60 (1/50) Retirement Program Local Miscellaneous Members SERVICE RETIREMENT The earliest retirement is age 50; the normal retirement age is 60; and the compulsory retirement age is 70. An employee may retire any time between these ages, 50 and 70, provided he meets the minimum requirements that he either have five years of service or have attained the compulsory retirement age of 70. The monthly income is determined by age at retirement, years of credited service, and "final compensation". The basic benefit will be 2% of "final compensation" for each year of credited service upon retirement at age 60. If retirement is earlier than age 60 the percentages of "final compensation" for each year of service are decreased. If retirement is deferred beyond age 60, the percentages of "final compensation" for each year of service increases to age 63. "Final compensation" is the average monthly salary (full-time rate excluding overtime) earned either during (1 ) the final 36 consecutive months unless member specifically requests another 36 consecutive month period, or (2) if provided by your agency by contract amendment, during the final 12 consecutive months unless member specifically requests another 12 consecutive month period. DISABILITY RETIREMENT An employee becoming disabled to the extent that he is incapable of performing his duties shall be eligible for disability retirement provided he has at least five years of service. The monthly retirement allowance is 1 .80% of "final compensation" for each year of service with a minimum guarantee of one-third of final compensation for most employees who have rendered at least 10 years of service. (If provided by your agency, the benefit would be a minimum of 30% of final compensation for five years of service and 1% of final compensation for each additional year of service to a maximum benefit of 50% of final compensa- tion). The disability retirement allowance shall under no circumstances exceed the service retirement allowance payable upon retirement for service 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 contributions plus interest and up to six month's pay (the sum of one month's salary rate for each year of current service to a maximum of six months). • 1957 Survivor Benefit: Members who are eligible to retire at the time of death have further death protection under this item. The beneficiary can elect to receive either the basic death benefit or the 1957 Survivor Benefit. This benefit provides a monthly allowance equal to one-half of the unmodified allowance the member was eligible for on the date of death. This monthly allowance will be paid to the surviving spouse until death or remarriage, or to eligible children until marriage or 18. Death After Retirement The death benefit is $500 (or if provided by your agency by contract amendment, $600). This amount will be in addition to any payments which might be made under an optional retirement benefit chosen by the member at time of retirement. TERMINATION OF EMPLOYMENT A member with five or more 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 through the June 30th before the refund is processed thus terminating his membership in the System and receiving no retirment benefits. Except (1 ) a member with less than five years of service shall not have the privilege of leaving his contributions with the System but shall automatically have his contributions plus interest through the June 30th before the refund is processed 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 miscellaneous member, whether a new member or a member with years of membership, will start contributing at the uniform rate of 7% of salary earned, exclusive of overtime, applied against gross 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 service benefits. All employer contribution rates are subject to revision by the Board of Administration. C1001 /Full (Rev. 4/82) S.