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Ord 1619 - Amending Chapter 20 of the Code Relating to the Contributions to the Town Retirement Plan and the Determination and Payment of Administrative CostsORDINANCE N0. ,1619 " AN ORDINANCE AMENDING CHAPTER 20 OF THE TOWN CODE RELATING TO CONTRIBUTIONS TO THE TOWN RETIREMENT PLAN AND THE DETERMINATION AND PAYMENT OF ADMINISTRATIVE COSTS The Town Council of the Town of Los Gatos hereby ORDAINS: Section 1. f ollows: Section 20 -6 of the Los Gatos Town Code is amended to read as Sec. 20-6. Employee contributions. (a) Each qualified employee shall agree that, commencing with the date upon which he becomes a member, an amount equal to five percent of his compensation, before any deductions, as the same may become payable, shall not be paid to him by the town; provided, that: (1) Such amount so withheld shall represent the contribution of the member to the trust fund. (2) By making such deductions, the town shall reimburse itself to that extent for advances made by it for the account of the member. (3) Upon the termination of employment, such member shall repay to the town any such advances for which the town may not have been reimbursed. Notwithstanding any provision of section 20 -10, no terminated employee, nor any beneficiary, shall be entitled to any sum whatsoever until the town shall have been reimbursed for any such advances made on behalf of such employee. (b) Each member may contribute up to an additional ten per cent of his monthly compensation, before any deductions, into the trust. Such additional voluntary contribution may be in amounts from one per to ten per cent, but not fractional amounts thereof. A member may terminate his additional voluntary contribution by notifying the retirement board in writing. In the absence of terminating his voluntary contribution, a member shall not change the percentage rate of his voluntary contribution, unless a period of six months has elapsed since such member had previously changed his rate of additional voluntary contribution. Such additional voluntary contributions will be treated exactly like all other funds contributed by the member. However, these additional voluntary contributions will not increase the participant's share in the town's contribution. (c) Each member shall be deemed to consent, and agree, to his contributions as made and provided for in this chapter, and shall receipt in full for his salary, compensation or wages. payment of such salary, wage or compensation, less such contribution, shall be a full and complete discharge of all claims and demands whatsoever for the services rendered by such member during the period covered by such payment, except his claim to any benefits to which he may be entitled under the provisions of this chapter. (d) To provide for the investment and reinvestment of contributions of members and the payment to each member, or beneficiary, of such member's proportionate share in the fund, the town council shall execute with such corporate bank or trust company as it may select, upon the recommendation of the retirement board, a trust instrument under which the contributions of members shall be held, administered and disbursed. (e) Notwithstanding any of the above provisions, and consistent with agreements negotiated between the town and its employee bargaining units, the town may pay a portion of, all, or more than the employee contributions set forth above. Section 2. follows: Section 20 -7 of the Los Gatos Town Code is hereby amended as Sec. 20 -7. Town contributions. The town shall make due and timely payments to provide for the continuation of this plan under the provisions of section 45343 of the Government Code. The town shall contribute monthly amounts calculated using the same fraction of each member employees' compensation before deductions as is then in use for calculating town contributions to the public employees' retirement system on behalf of town employees who are miscellaneous members of the public employees' retirement system. Such contribution by the town shall continue only so long and coinciding with the period of time in which the employee contributes as a member. No contribution by - the town shall be made for nonmembers or noncontributing members, including employees on leave of absence and leave of absence for military service. Contributions by the town which have not vested in full in a member upon the termination of such member from employment with the town shall be credited to future contributions required to be made by the town. Contributions by the town shall not be in excess of the limitations provided by the laws of the state. As used in this section, the term "compensation" shall be defined according to that definition and regulations contained in sections 20022 and 20025.2 of the California K Government Code. The costs of administering the retirement plan and trust, including costs of acquiring and disposing of trust property, shall not be paid by the town. -2- Section 3. Section 20 -7.5 of the Los Gatos Town Code is hereby enacted and added as follows: /X_ Sec. 20 -7.5. Administrative costs. (a) Administrative costs for the retirement plan and trust, including costs of acquiring and disposing of trust property, shall be the sole responsibility of the members of the plan. Those members currently employed with the town shall have their proportionate cost of administering the plan and trust deducted from their payroll checks no more than once a month. Those members not currently employed with the town shall have their proportionate cost of administering the plan and trust deducted from their trust account at the end of the town fiscal year. (b) The town shall annually determine the amount of the administrative costs for the retirement plan and trust and the proportionate cost for each member of the plan. The town manager shall report to the town 1 totwl adminis- trative costs for the retirement plan and trust and the proportionate cost for each member in conjunction with the preparation and adoption of the town budget. The town council shall approve the amount of deduction from the currently employed members' payroll checks and the amount of deduction from the trust accounts of the members not currently town employees. The deductions shall be made in accordance with subsection (a) above. Any adjustments necessary for the currently employed members shall be made in the last payroll check of the town fiscal year. Section 4. follows: Section 20 -9 of the Los Gatos Town Code is hereby amended as Sec. 20 -9. Members' trust accounts. (a) The town shall establish and maintain a trust account for each member of the retirement plan which shall show the amounts deposited in the trust fund for each member from the town contributions and members' contributions, and the dates of each deposit as well as the obligation of the town for past service. (b) On each regular payday, commencing on the effective date of this chapter and continuing thereafter, the town shall credit the trust account of each member with the amounts deposited in the trust fund on behalf of each member from town and member contributions for current service. Gains or losses reflected by the annual statement of the trustee of the trust fund shall be prorated among, and charged or credited to, the members' trust accounts, based on the relationship of the average balance in each member's trust account to the total of the average balance in - the trust accounts of all members. -3- (c) At the close of each fiscal year, the town shall prepare a statement of the trust account of each member, and furnish the statement to the member. The statement shall show the valuation date, the amounts deposited in the trust fund for each member from town contributions and member contributions, and the apportionment of the gains or losses for the year from the operation of the retirement trust and the fair market value of each member's account. (d) The trust account of each member shall terminate automatically at the time the account is depleted by withdrawals. All rights of the member and the beneficiaries, heirs or assigns of the member, to the retirement plan or trust fund shall thereupon cease. (e) The proportionate cost of administering the retirement plan and trust for each member not currently employed with the town shall be deducted from the trust account of such member on the last regular payroll for the town fiscal year. Section 5. This ordinance shall take effect and shall be in force on July 1, 19134: W th - in - 15 days - e - _ i s o rd ina — rs adopted, the Town — C — hr 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 re ug lar meeting of the Town Council of the Town of Los Gatos on _May 7th 1964 and adopted by the following vote as an ordinance of the Town o Los Gatos at a r_egular meeting of the Town Council on M ay 21st 1964. AYES: COUNCILMEMBERS J oanne i n, Eric __ Carlson ,_Terrence J_. Daily and PMay_or_Thomas_ J. Ferrito NOES: COUNCILMEMBERS Brent N. Ventura ABSTAIN: COUNCILMEMBERS None ABSENT: SIGNED: ATTEST: -4-