Ord 1807 - Adopting Amendment to Contracts Between the Board of Administration of the Public Employees' Retirement System and the Town CouncilORDINANCE 1807
ORDINANCE OF THE TOWN OF LOS GATOS
ADOPTING AMENDMENT TO CONTRACTS
BETWEEN THE BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY
16717 /7_ \i2;
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 /Manager of the Town of Los Gatos is hereby authorized, empowered,
and directed to execute said amendment for and on behalf of said agency.
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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 November 6, 1989 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 December 4, 1989.
AYES
COUNCIL
MEMBERS
Joanne Benjamin, Eric D. Carlson,
Brent N. Ventura
Mayor Thomas J. Ferrito
NAYES
COUNCIL
MEMBERS
NONE
ABSENT
COUNCIL
MEMBERS
NONE
ABSTAIN
COUNCIL
MEMERS
Robert A. iltoA
SIGNED
ATTEST
CLERK OF THE TOWN OF LOS (G TOS
MG110689.01
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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 and October 1, 1976, 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 October 1, 1976, and hereby replaced by the following paragraphs
numbered 1 through 13 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 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 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. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety
members);
C. 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
EXCEPT FOR 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.
6. Assets heretofore accumulated with respect to members under the local
retirement system who become members of the Public Employees'
Retirement System on contract date and applied against the liability
for prior service incurred hereunder. That portion of assets so
transferred which represent the accumulated contributions (plus
interest thereof) required of the employees under said local system
were credited to the individual membership account of each employee
under the Public Employees' Retirement System.
7. 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 with all service prior to Federal Social Security
termination June 30, 1976, subject to the reduction provided by said
section (2% at age 60 Full and Modified).
8. The fraction 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 21252.01 of said Retirement Law
(2% at age 50 Full).
9. 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 21361.5 (Local System Service Credit).
b. Sections 21263 and 21263.1 (Post- Retirement Survivor Allowance).
C. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits).
d. Section 20024.2 (One -Year Final Compensation).
e. Section 20930.3 (Military Service Credit as Public Service),
Statutes of 1976.
10. Public Agency, in accordance with Government Code Section 20740,
ceased to be an "employer" for purposes of Section 20759 effective on
July 1, 1976. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20759, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20759.
11. 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) 7.509 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change.)
b. With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
(1) 15.574 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change.)
(2) 0.008 percent until June 30, 2000 on account of the
liability for the 1959 Survivor Program. (Subject to annual
change.)
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.
12. 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.
13. 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.
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B. This amendment shall be effective on the day of
:l�Dx r 19
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
C IEF, CONTRACT SERVICES DIV IO
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
TOWN COUNCIL
OF THE
TOWW OS
BY�
Priding Office
! / W -
Witness Date
Attest:
Clerk
PERS -CON -702 (AMENDMENT)
(Rev. 6/88)