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1972/05/15 City Council Resolution (7)RESOLUTION NO. 72 -70 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF ROHNERT PARK WHEREAS, the Public Employees' Retirement Law permits the partici- pation 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 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 contain a summary 'of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: REMOVE THE EXCLUSION OF EMPLOYEES COMPENSATED ON AN HOURLY BASIS AND REMOVE THE EXCLUSION OF RECREATION DEPARTMENT EMPLOYEES. EXCLUDE PERSONS HIRED ON OR AFTER AUGUST 1, 1972 WHO ARE EMPLOYED. ON A TEMPORARY OR SEASONAL BASIS IF IT IS A CONDITION OF EMPLOY- MENT THAT SAID EMPLOYMENT NOT EXCEED SIX MONTHS. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF ROHNERT PARK gives, and it does hereby give notice of intention to approve an amendment to the contract between the CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, marked Exhibit "A" and "B" and by this reference made a part hereof. May 15, 1972 CITY COUNCIL OF THE CITY OF ROHNERT PAR AYES: ( 5 ) NOES: (0) ATTEST: _ Mayor Deputy City 1 erk I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council, of the City of Rohnert Park, on May 15, 1972. Depu 'y Cit Clerk Exhibit "A" AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF ROHNERT PARK The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the CITY COUNCIL of the CITY OF ROHNERT PARK, hereinafter referred to as Public Agency, having entered into contract under date of May 17, 1965, effective July 1, 1965 and as provided by Chapter 170, Statutes of 1971, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. The exclusions appearing in Paragraph 3 shall be stricken from said contract and the following exclusions shall be substituted therefor: EXCLUDE ELECTED OFFICIALS. EXCLUDE PERSONS HIRED ON OR AFTER AUGUST 1, 1972 WHO ARE EMPLOYED ON AA TEMPORARY OR SEASONAL BASISt1 IF IT IS A CONDITION OF EMPLOYMENT THAT SAID EM PLOYMENT NOT EXCEED SIX MONTHS. B. This amendment shall be attached to said contract and shall become effective on the day of Witness our hands this day of BOARD OF ADMINISTRATION CITY COUNCIL OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ROHNERT PARK By By William E. Payne, Executive Officer Mayor ATTEST: Deputy City Clerk ETCHBIT 13 SWMARY OF MAJOR PROVISIONS Modified 2% at 60 (1/50 Retirement Program) local Miscellaneous Members MEMBERSHIP Membership is compulsory for all employees, other than elected officials, who are employed one-half time or more except those excluded under the contract. SERVICE RETIREMENT The earliest retirement age is 55; the normal retirement age is 60; and the compulsory retirement age is 67 for those who attain age 67 on or after October 1, 1973. Compulsory retirements are based on a set graduated scale until that date. An employee may retire any tine after age 55 provided lie meets the minimum require- ment that he have 5 years of service. 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 deferred beyond age 6D, the percentages of ''final compensatiow" for each year of service are increased actuarially up to age 63 but not beyond. If retirement is earlier than aFe 60, the percentages of `final compensation- for each year of service are actuarilly decreased. In order to coordinate the benefits from the State system, with benefits from Social Security (for those employees covered by Social Security) the Law provides that the portion of the State system whi&i relates to the first $400 of monthly salary will be two-thirds of the full formula with the full formula governing that portion of the benefit =h, ch is earned by the excess of final compensation over $400. Mathemat- ically this is exactly the same as though the salary subject to retirement were re- duced by $133.33 for any member earning $400 a month or more. �pinal compensation; is the highest average annual compensation (excluding over- time) earnable by a member during the three consecutive years of employment immediately preceding the effective date of retirement or during any other period of 3 consecutive years designated by the member. A minimum service retirement allowance of $100 per month is guaranteed upon com- pulsory retirement with credit for prior service. An employee becoming disabled to the extend that he is incapable of performing his duties shall be eligible for disability retirement provided he has at least 5 years of service. The monthly retirement allowance is 1.50% of ''Ifinal compensation"' for each year of service, with a minimum guarantee of one-third of final compen- sation for most employees who have rendered at least 10 years of service. The dis- ability 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. Basic Death Benefit This benefit is a refund of the member's accumulated �Fo_nt-RB_utions 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 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. 1957 Survivor Benefit Employees with 5 or more years of service who have reached the —m-1-n—imum 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 income lasts until the widow's death or -remarriage with a guarantee that the System will pay as much as under the basic death benefit. Death After Retirement The death benefit is $500 if death occurs after retirement. This amount will be in addition to any payments which might be made under an optional retirement benefit chosen by the member at his retirement. Upon termination of employment, an employee with 5 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) , thus, terminating 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. 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, on t1he date this formula becomes effective. 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 and disability benefits. All contribution rates are subject to revision by the Board of Administration.