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.
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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.
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(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:
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