HomeMy WebLinkAboutResolution No. 171 208
RESOLUTION NO. 171
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
SIGNIFING INTENTION TO APPROVE 1/60 CONTRACT PROVIDING
FOR PARTICIPATION IN STATE EMPLOYEES' RETIREMENT SYSTEM.
WHEREAS, the State Employees' Retirement Law permits the participation of Public
Agencies in the State Employees' Retirement System, making their employees members
of said System, and sets forth the procedure by which participation may be accomplished;
and
WHEREAS, one step in said procedure is the adoption by the Boverning Body of the
Public Agency of a resolution giving notice of intention to approve a contract for
such participation between said Governing Body and the Retirement System Board of
Administration, which resolution shall contain a summary of the major provisions of
the proposed retirement plan; and
WHEREAS, the following is a summary of the major provisions of the proposed plan:
MEMBERSHIP
Membership is compulsory with few exceptions for all employees covered
by the contract after six months of employment on at least a half -time basis.
Local fireman, policemen, and county peace officers participate as Local Safety
Members. All others participate as Miscellaneous Members.
ELIGIBILITY FOR SERVICE RETIREMENT
Optional at age 55 for Local Safety Members and at age 55 for all other
members provided there is credit for twenty years of service.
Compulsory at age 65 for Local Safety Members and at age 70 for all others.
Under special provisions of the Retirement Law, members who leave more than
$500 of contributions on deposit upon separation from service may retire after the
minimum age for optional retirement even though their credited service is less than
twenty years.
SERVICE RETIREMENT ALLOWANCES
Local Safety Members
One -half of "final compensation" upon retirement at age 55 with or
upon later completion of at least twenty continuous years af service.
Miscellaneous Members
1/60 of "final compensation" for each year of service after contract
date plus 100 percent af 1/60 of "final compensation" for each year of
service before contract date upon retirement at age 60 or an actuarially
reduced fraction for each year of service if retirement is before age 60.
MINIMUM SERVICE RETIREMENT ALLOWANCES
$60.00 per month is guaranteed upon compulsore retirement with credit for
service prior to contract date or upon retirement at age 65 or over with twenty
years of service.
1 ORDINARY DISABILITY RETIRMENT
All members are eligible for retirement for ordinary disability upon prof
of incapacity for the performance of duty if the member is credited with ten years .
of service or with at least 4500 of accumulated contributions. The retirement
allowance is 90% of 1/60 of "final compensation" for each year of service with a
guarantee of 25% of such compensation under certain conditions. 4
INDUSTRIAL DISABILITY RETIREMENT
Local Safety Members are entitled to a special retirement allowance if the
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disability is one arising out of and in the course of employment regardless
of age Or length of service. The allowance is one-half of "final compensation II .
Other members are not eligible for this benefit.
DEATH BENEFITS BEFORE RETIREMENT
The benefit payable upon death of an employee-member before retirement
consists of the contributions of the member plus interest and an amount equal
to 1/12 of the salary during the year preceding death for each year, to a
maximum of six, of membership in the System. If the death arose out of and in
em1 the course of employment, the benefit of a Local Safety Member is instead a
monthly benefit in the amount of one-half of "final compensation" payable to
his widow or children.
DEATH BENEFITS AFTER RETIREMENT
A benefit of $400.00 will be paid upon death after retirment.
BENEFITS UPON SEPARATION
All members, whose accumulated contributions exceed $500, upon separation
from service have a right to elect, subject to certain conditions, to either
withdraw their accumulated contributions or permit their contributions to remain
in the Fund with a right to receive a service retirement allowance based on such
service upon retirement of minimum age for service retirement.
FINAL COMPENSATION
The average monthly salary during the three consecutive years of highest
earnings.
CONTRIBUTION RATES
Contributions af Local Safety Members depend upon salary sex, age at entry
into the System and amount of service prior to contract date. Such contributions'
currently range from a maximum of 16.33% of salary at entry age of 54 with nine-
teen years of prior service, to 7.35% of salary at entry age of twenty years with
no prior service.
Contributions for other employees depend upon salary, sex and age at entry
into the System, such contributions currently ranging from a maximum of 10.88
of salary at age 59, to 7.36 of salary at age 20 for men; and a maximum of 12.81
of salary at age 59, to 8.35 of salary at age 20 for women.
The agency is required to contribute the balance of the cost of benefits
provided under the plan and is required to pay a proportionate share of admin-
istrative costs.
All contribution rates are subject to revision by the Board of Administration
in theclight of experience under the plan:
. NOW, THEREFORE, BE IT RESOLVED, That the City Council of the City of Downey, gives,
and it does hereby give notice of intention to approve a contract between said City
Council and the Board of Administration of the State Employees' Retirement System,
providing for participation of said City of Downey in said Retirement System, a copy
of said contract being attached hereto, marked "Exhibit A", and by this reference made
a part hereof.
APPROVED AND ADOPTED this 12th day of November, '57.
WAIL
, yor
I hereby certify that the foregoing resolution was duly adopted by he City
Council of the City of Downey at a regular meeting thereof held on the 12th day of
November, 1957 by the following vote of the Council.
AYES: Councilmen: /,
NOES: Councilimen:11 j /
‘,.2) ABSENT Councilmen:i