Ord 2033 - Adopting Amendment to contract between the Board of Administration of the Public Employees' Retirement System and the Town Council of the Town of Los Gatos to provide higher level of survivor's benefitsORDINANCE 2033
ORDINANCE OF THE TOWN OF LOS GATOS
ADOPTING AMENDMENT TO CONTRACT
BETWEEN THE BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
TO PROVIDE HIGHER LEVEL OF SURVIVOR'S BENEFITS
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS
FOLLOWS:
SECTION I
That an amendment to the Contract between the Town of Los Gatos and the Board of
Administration, California Public Employees' Retirement System is hereby authorized, a copy of
said amendment being attached hereto, marked "Exhibit A ", and by such reference made a part
hereof as though herein set out in full.
SECTION II
The Mayor of the Town of Los Gatos is hereby authorized, empowered and directed to
execute said amendment for and on behalf of said Agency.
I.
SECTION III
This ordinance takes effect 30 days after it is adopted. Within 15 days after this ordinance
is adopted the Town Clerk shall cause it to be published once in a newspaper of general circulation
published and circulated in the Town.
This ordinance was introduced at a regular meeting of the Town Council of the Town of
Los Gatos on June 2, 1997 and adopted by the following vote as an ordinance of the Town of Los
Gatos at a regular meeting of the Town Council of the Town of Los Gatos on July 7, 1997.
COUNCIL MEMBERS:
AYES: Randy Attaway, Steven Blanton, Jan hutchins, Linda Lubeck,
Mayor Joanne Benjamin/
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:
AYOR. OF THE TOWN LOS GATOS
OS GATOS, CALIFOR
ATTEST:
1
CLERK OF THE TOWN OF L S GATOS
LOS GATOS, CALIFORNIA
2
TOWN CLERK
A rt: ; , .1, /
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
TOWN COUNCIL
OF THE
TOWN OF LOS GATOS
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective April 1, 1972, and witnessed March 1, 1972, and as
amended effective August 2, 1972, June 1, 1976, July 1, 1976, October 1, 1976, January 4, 1990,
and December 16, 1992 which provides for participation of Public Agency in said System, Board
and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective
December 16, 1992, and hereby replaced by the following paragraphs numbered 1
through 14 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 55 for local
miscellaneous members and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from
and after April 1, 1972 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 contracting
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. Local Police Officers (herein referred to as local safety members);
b. Employees other than local safety members (herein referred to as local
miscellaneous members).
j
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. ALL PERSONS EMPLOYED ON OR PRIOR TO CONTRACT
DATE WHO WERE MEMBERS OF THE LOCAL SYSTEM
EXCEPT THOSE IN EMPLOYMENT ON CONTRACT DATE
WHO WAIVED THEIR RIGHTS UNDER THE LOCAL SYSTEM
AND THOSE PERSONS WHO WAIVED THEIR RIGHTS
BETWEEN MARCH 18 AND MARCH 26, 1976.
5. Prior to January 1, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 supersedes this
contract provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January 1, 1975.
Legislation repealed and replaced said Section with Government Code Section
20305 effective July 1, 1994.
6. Assets heretofore accumulated with respect to members under the local retirement
system who waived their rights under that system have been transferred to the
Public Employees' Retirement System on April 1, 1972 or between March 18, and
March 26, 1976 and applied against the liability for prior service incurred
thereunder. That portion of assets so transferred which represent the accumulated
contributions (plus interest thereof) required of the employees under said local
system have been credited to the individual membership account of each such
employee under the Public Employees' Retirement System.
7. The percentage of final compensation to be provided for local miscellaneous
members for each year of credited prior and current service shall be determined in
accordance with Section 21354 of said Retirement Law, subject to the reduction
provided therein for service prior to June 30, 1976, termination of Social Security,
for members whose service has been included in Federal Social Security (2% at
age 55 Full and Modified).
8. The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2 % at age 50 Full).
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21536 (Local System Service Credit Included in Basic Death
Benefit).
b. Sections 21624 and 21626 (Post- Retirement Survivor Allowance).
C. Section 21574 (Fourth Level of 1959 Survivor Benefits).
d. Section 20042 (One -Year Final Compensation).
e. Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
10. Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on July 1, 1976.
Accumulated contributions of Public Agency shall be fixed and determined as
provided in Government Code Section 20834, and accumulated contributions
thereafter shall be held by the Board as provided in Government Code Section
20834.
11. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with respect
to local miscellaneous members and local safety members of said Retirement
System.
12. Public Agency shall also contribute to said Retirement System as follows:
a. Per covered member, $8.50 per month on account of the liability for the
1959 Survivor Benefits provided under Section 21574 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 survivors of all local miscellaneous
members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one installment
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 installment 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.
13. 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.
14. Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen 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 day of , 19Q
BOARD OF ADMINISTRATION TOWN COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE
TOWN OF LOS GATOS
BY
KENNETH W. MARZION, CHIEF
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk
AMENDMENT
PERS - CON -702A (Rev. 8 \96)
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
TOWN COUNCIL
OF THE
TOWN OF LOS GATOS
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective April 1, 1972, and witnessed March 1, 1972, and as
amended effective August 2, 1972, June 1, 1976, July 1, 1976, October 1, 1976, January 4, 1990,
and December 16, 1992 which provides for participation of Public Agency in said System, Board
and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective
December 16, 1992, and hereby replaced. by the following paragraphs numbered 1
through 14 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 55 for local
miscellaneous members and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from
and after April 1, 1972 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 contracting
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. Local Police Officers (herein referred to as local safety members);
b. 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. ALL PERSONS EMPLOYED ON OR PRIOR TO CONTRACT
DATE WHO WERE MEMBERS OF THE LOCAL SYSTEM
EXCEPT THOSE IN EMPLOYMENT ON CONTRACT DATE
WHO WAIVED THEIR RIGHTS UNDER THE LOCAL SYSTEM
AND THOSE PERSONS WHO WAIVED THEIR RIGHTS
BETWEEN MARCH 18 AND MARCH 26, 1976.
5. Prior to January 1, 1975, those members who were hired by Public'Agency on a
temporary and /or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 supersedes this
contract provision by providing that any such temporary and/or seasonal
employees are excluded from PER$ membership subsequent to January 1, 1975.
Legislation repealed and replaced said Section with Government Code Section
20305 effective July 1, 1994.
6. Assets heretofore accumulated with respect to members under the local retirement
system who waived their rights under that system have been transferred to the
Public Employees' Retirement System on April 1, 1972 or between March 18, and
March 26, 1976 and applied against the liability for prior service incurred
thereunder. That portion of assets so transferred which represent the accumulated
contributions (plus interest thereof) required of the employees under said local
system have been credited to the individual membership account of each such
employee under the Public Employees' Retirement System.
7. The percentage of final compensation to be provided for local miscellaneous
members for each year of credited prior and current service shall be determined in
accordance with Section 21354 of said Retirement Law, subject to the reduction
provided therein for service prior to June 30, 1976, termination of Social Security,
for members whose service has been included in Federal Social Security (2% at
age 55 Full and Modified).
8. The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21536 (Local System Service Credit Included in Basic Death
Benefit).
b. Sections 21624 and 21626 (Post- Retirement Survivor Allowance).
C. Section 21574 (Fourth Level of 1959 Survivor Benefits).
d. Section 20042 (One -Year Final Compensation).
e. Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
10. Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on July 1, 1976.
Accumulated contributions of Public Agency shall be fixed and determined as
provided in Government Code Section 20834, and accumulated contributions
thereafter shall be held by the Board as provided in Government Code Section
20834.
11. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with respect
to local miscellaneous members and local safety members of said Retirement
System.
12. Public Agency shall also contribute to said Retirement System as follows:
a. Per covered member, $8.50 per month on account of the liability for the
1959 Survivor Benefits provided under Section 21574 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 survivors of all local miscellaneous
members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one installment
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 installment 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.
13. 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.
14. Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen 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 day of
BOARD OF ADMINISTRATION TOWN COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE
TOWN OF LOS GATOS
BY
KENNETH W. MARZION, CHIEF
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
B
P IDING OFFICER
a"Y.-ir W % 19`
Witness Dik
Attest:
Clerk
AMENDMENT
PERS- CON -702A (Rev. 8 \96)
CALIFORNIA PUBLIC E&,eLOYEES' RETIREMENT SYSTE1Vt
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229 -2709
(916) 326 -3420
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
.
I hereby certify that the u d � u t of the
(governing body)
(public gency)
adopted on r 19 by an affirmative vote of a majority of the members of said
date)
Governing Body, �� No. 016 _ approving the
(Ordinance or Resolution)
attached contractual agreement between the Governing Body of said Agency and the Board of
Admin=of rnia Public Employees' Retirement System, a certified copy of said
-3 3 in the form furnished by said Board of Administration
(Ordinance or Resolution)
being attached hereto.
(-? U ,.Lz J 0, �
Clerk/Secretary
Date a 1q9
Title
PERS -CON -5 (Rev. 1/96)
TOWN OF LOS GATOS
CIVIC CENTER
OFFICE OF THE TOWN MANAGER 110 E. MAIN STREET
Personnel Office P.O. Box 949
(408) 354 -6829 FAX: (408) 354 -8431 Los GATOS, CA 95031
September 15, 1997
Mr. Kenneth W. Marzion
Public Employees Retirement System
Actuarial & Employer Services Division
P. O. Box 942709
Sacramento, CA 94229 -2709
SUBJECT: CERTIFIED COPIES OF ADOPTED AMENDMENT
Dear Mr. Marzion:
Enclosed are two certified copies of the adopted amendment to contract between the Board of
Administration of the Public Employees' Retirement System and the Town Council of the Town
of Los Gatos to provide higher level of Survivor's Benefits. Please sign both copies, keep one
copy for your files and return the other copy to the Town of Los Gatos.
Also, enclosed is a certified copy of Ordinance 2033. Please keep the certified copy for your
records.
If you have any questions, please contact me at (408) 354 -6832.
Sincerely,
MARTHA ESCOBEDO
Personnel Secretary
Enclosures
cc: Marlyn Rasmussen, Senior Deputy Clerk
MGRI 18;A:\LEYMRS \SRV IVR. WPD
INCORPORATED AUGUST 10, 1887
s��