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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. -1- 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 -2- 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. - rIk 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)