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HomeMy WebLinkAboutLetter_1951_July 17_SERS r ~. , BOARI) OF ADMINISTRATION EARL W, CHAPMAN '-' ~ " ......I EXECUTIVE OFFICER H. H. BENEDICT, PRESIDENT DONAL.D GAL.LAGHER, VICE PRESIDENT JOHN R. CORNWELL. RALPH H. COWING JAMES DEAN THEODORE H. JENNER WALTER C. KENNEDY HAROLD H. ROBINSON RALPH R. NELSON ACTUARY EDWARD K. COOMBS ASSIST"'HT EXECUTIVE OFFICER STATE OF CAL.IFORNIA BOARD OF ADMINISTRATION LAUREN C. HAIGHT ASSISTANT ACTUARY ~t&tc ~mplot!ccs' ~tir~mmt ~t!stcm f320 K STREET SACRAMENTO 14 July 17, 19U1 PLEASE DIRECT YOUR REPl.Y TO 6ECTION__ REFER TO MEMBER ACCOUNT NUMBER (~i 'ty of. S-anta {UlE., San'ta ~~j ~~lif~~lrl~ Gentlemen: Atten: Erma Keeler, City Clerk '~"I,j:'lj1 ~1,='~_';. , hereinafter referred to as of the valuation, CITY OF (N a m e 0 f Agency, all as Enclosed is the Consulting Actuaries 1 abbreviated summary in connection with the status under the Retirement System of Pub 1 i c Age n c y) required as of June 30, 1950, by the Retirement Law. As indicated in the upper right area, page 1, of the form, separate s~~aries of valuation results, are given according to whether the valuation is (I) under your contract as at June 30, 1950, ~dthout amendment, or (II) under the contract modified by the proposed amendments described, if any. Comparison of the results in the summaries, will show the cost of respective amendments or groups of amendments, where more than one are valued together. No valuation summary is included, however, for the military amendment de- scribed in Item (10) of enclosed form 591. The irregular effects of the amendment could not readily be shown on summary form 322c, but separate information about it will be sent soon. The following comments are submitted: 1. The State Employees' Retirement Law and the contract under which Agency participates in the Retirement System, provide that contributions required of Agency as stated in the contract, are subject to adjustment b,y the Board of Administration on account of experience under the Retirement System, as determined by the periodical investigation, valuation, and determination provided for by t~e Retirement Law. 2. The investigation and valuation as of June 30, 1950, having been completed, the Board of Administration hereb,y quotes the percentage and amount stated in Items 33 and 34, respectively, of the summary under (I) the contract as it was at June 30, 1950, without amendment, as the adjusted contribu- tions to be made by Agency beginning ~11y 1, 1951. Adjustment will be made automatically by the next investigation and valuation, for the fact that 1950-51 contributions have been at the original percentage and amount. F 326a-l 5-51 llOO ~ ....., 3. The summary no doubt will be largely self-explanatory. It might be stated, however, that the percentage in Item 33, is to be applied to members' earned salaries appearing on each payroll, to determine the contribution required of Agency on account of current service liabilities. The amount stated in Item 33, for example, results from such application to annual salaries in Item 3. The amount given in Item 34, is the contribution required annually for the period stated, on account of prior service liabil- ities. 4. Assets derived from Agency's contributions and standing to Agency's credit, together with accumulated interest at June 30, 1950, were credited on the liabilities, as shown in Items 28, 29, and 30, before the determination of the contributions. 5. Further explanation of the summary will be given only upon request. Otherwise, Agency should substitute the current service percentage and prior service installment in Items 33 and 34, respectively, of the summary under (I) the contract without amendment, for the percentage and amount now in use and contribute accordingly to the Retirement System, beginning with your payroll covering service for the month of July, 1951, without further communication from here. 6. The Board of Administration is authorized by the state Employees' Retirement Law, to include each year in the contributions required of Agency, a reasonable amount to cover the costs of administering the Retirement System, as it affects persons who are members because of employment by Agency. This amount will be $4.75 per member for 1951-52, in addition to the contribution quoted in the Consulting Actuaries' report. An invoice for this will be sent later. If you decide to amend your contract to adopt any of the proposed amendments valued, if indeed any were proposed by your Agency, you 'should send a letter to the Retirement System to that effect including the contemplated effective date. We then would furnish the required forms with instructions. Enclosed is a bill for the compensation stated in the contract executed between you and the consulting actuaries. Yours truly, BCARD OF ADMINISTRATION STATE EMPLOYEES' RETIREMENT SYSTEM BY (~!eJ;(~. RALPH R. NELSON ACTUARY F 326a-2 5-51 llCO I. 't'.. . i '-' ....." CltfY ~F ':;:-J'!T.A.. ':..NA This Summary refers t~ the Valuation under II. Agency's Contract Modified by Proposed Amendments described in attached statement, F 591 and bearing the 1950 following numbers in that statement: L.(.:J&;i Agency Number 1 :'.'7 COATES, HERFURTH & ENGLAND CONSULTING ACTUARIES 225 CROCKER BLDG. - SA."I FRl\.NCISCO 4 CALIFORNIA Summary ~ Public Agency Valuation ~ ~ July 1. Agency Name Miscellaneous Data 1.** Minimum Normal Age at Voluntary Service Retirement Local Safety Members 55* ~ Misc. Members 60 (1/60)* 6;;ql~*, Tot a 1 7. Annual Members' Contrib. % Payroll Net Benefits. All Members 28.** P.V.~~ all Net C.S. Benefits other than Ord. Death Less Agency Accum. Contribs. on hand Balance to be provided by Agency % P.V. of Future Salaries 29. P.V. Net Ord. Death Benefits Less Agency Accum. Contribs. on hand Balance to be provided by Agency % P.V. of Future Salaries P.V. Prior Service Benefits Less Agency Accum. Contribs. on hand Balance to be provided by Agency Annual Installment to provide (28) % of Annual Salaries 2. 3. 5. 6. 30. 31. 32. 33. 34. Number of Members (a) On Duty (b) Not on Duty Annual Salaries, members on duty only Number of Retired Members Annual Prior Service Pension AG!i:NCY CrnITTi.IHUTIOnS IJ i.;('~.7'.r{;\.(;T A.'ME}IDl~D A,SABOYB TO C01fi..;{ R~,;TI}(L~D --....- MEMB i;;RS . -- Annual Installment to provide (29) % of Annual Salaries Total Annual Installment, Curro Servo '(31 and 32) % of Annual Salaries '../} , ~ j / /1 " -., ^. T:,f : ~54 5"" ^O' 9 . ,J,).V 5.0'?1 * ** *** Annual Installment to liquidate Prior Service (30) in ~ years, i.e., Balance of period originally selected ~6~~29J.~;~ % of Annual Salaries I _. f) r". '-"" COA'rE7TF'~.RTH / &; ENGLAND I' t,' ..., '.; , .',ly m., .1951 /~~ same numbers as in previous revaluation summaries Cross out one. Items bear the Present Value. F 3220 5-51 lSOO .. 1 '; .. '-' ...." STATEMENT OF AMENDMENTS TO TIlE CALIP1R:\lTl\. STA'TE E','PL)YBES I R"T:m<,)~NT LPW - -"--- -.-.-----... ,.._-,._--~- WHICH MAY BE ELECTED BY A CONTRACTING PUBLIC AGENCY (To be attached to Summary of Valuation Results as of July 1, 1950, F322c) A. Agency may elect to apply to its contract the 1945 and 1947 amendments to the Retirement Law, briefly as follows: (1) Normal service retirement age for Miscellaneous Members reduced from 65 to 60; (2) The factor in the service retirement allowance formula for Miscellaneous Members increased from 1/70 to 1/60; (3) The minimum guaranteed monthly retirement allowance increased from $40 to $60 to apply at age 65 or over with credit for 20 years of service or at age 70 with prior service credit; (4) A death benefit of $300 provided for retired persons; (5) A guaranteed percentage of final compensation for each year of service as a member, provided for Miscellaneous Members; (6) The maximum of $5,000 per annum of compensation to be included in compu- tations under the Retirement Law, removed; (7) Normal service retirement age for Local Safety members reduced from 60 to 55 and basis of benefits increased. B. Agency may elect to apply to its contract the 1949 amendments to the Retirement . Law, briefly as follows: (8) Prior service allowances provided for Miscellaneous Members, equal to one- sixtieth of final compensation upon service retirement at age 60 or its actuarial equivalent upon service retirement ages 55 to 65 and over; (9) A guaranteed percentage of final compensation provided for each year of service as a Local Safety Member. C. (10) Agency may elect to make contributions of its members who were or will be absent on military service, in addition to its contributions as an employer. D. Agency may elect to increase the retirement allowances payable to retired persons and provide a death benefit for them by applying to such persons the provisions of its contract; (11) As that contract existed on June 30, 1950, or (12) As that contract would exist if amended as outlined under paragraph "A" above, or (13) As that contract would exist if amended as outlined under paragraphs "A" and "B" above. F 591 5-51 1500 / Pi / / (,.t)/'J('." e / ~J"'-Y ...... '_._.' )v' )' Ie/' j(~/j/ ~ \r-;'; '; ", J This Summary refers to the Valuation under II. Agency's Contract Modified by Proposed Amendments described in attached statement, F 591 and bearing the 1950 following numbers in that statement: A&B . Agency Number 137 COATES, HERFURTH & ENGLAND CONSULTING ACTUARIES 225 CROCKER BLDG. - SAN FRANCISCO 4 CALIFORNIA Summary of Public Agency-Valuation ~ ~ July 1, CITY OF SANTA AK~ Agency Name Miscellaneous Data 1.** Minimum Normal Age at Voluntary Service Retirement Local Safety Members 55* ~ 2. 3. 5. 6. 7. Number of Members (a) On Duty 114 (b) Not on Duty Annual Salaries, members on duty o~S85,452.00 Number of Retired Members Annual Prior Service Pension Annual Members' Contrib. % Payroll - $ 42,332.64 10.98 Net Benefits, All Members 28.** P.V.*** all Net C.S. Benefits other than Ord. Death Less Agency Accum. Contribs. on hand Balance to be provided by Agency % f.V..of Future Salaries 29. P.V. Net Ord. Death Benefits Less Agency Accum. Contribs. on hand Balance to be provided by Agency % P.V. of Future Salaries P.V. Prior Service Benefits Less Agency Accum. Contribs. on hand Balance to be provided by Agency 30. 31. 32. 33. 34. Annual Installment to provide (28) % of Annual Salaries Annual Installment to provide (29). % of Annual Salaries Misc. Members 60 (1/60)* ~mlt 241 17 $691,128.00 30 $ 28,410.00 $ $ 63.476.64 $ 9.18 Total / 355 / 17 / ',':r. ',/ -y $1.076.580.00 30' 28.410.00 105,809.28 9.83 766.825.00 255.715.00 511.110.00 4.579 74.878.00 20.705.00 54.173.00 .485 $1.152,788.00 88.577.00 $1.064,111.00 t\ $ $ $ 49.297.00 4.579 $ 5.221.00 .485 Total Annual Installment, Curro Servo (31 and 32) $ % of Annual Salaries Annual Installment to liquidate Prior Service (30) in 22 years, i.e., Balance of ' period originally selected $ % of Annual Salaries COAT~ ENCWll. / ~".j ( .. in previous revaluation summaries July 17th , 1951 * i:--lI' *** Cross out one. Items bear the Present Value. same numbers as F 322c 5-51 )500 54.518.00 . 5.064 1J3,471.00 5.696 I ' . . ,"'l < . ~ '-' ...." STATEMENT OF AMENDMENTS TO THE CALIFORNIA STATE ~YEES' RETIREIAENT~ WHICH MAY BE ELECTED BY A CONTRACTING PUBLIC AGENCY (To be attached to Summary of Valuation Results as of July 1, 1950, F322c) A. Agency may elect to apply to its contract the 1945 and 1947 amendments to the Retirement Law, briefly as follows: (1) Normal service retirement age for Miscellaneous Members reduced from 65 to 60; (2) The factor in the service retirement allowance formula for Miscellaneous Members increased from 1/70 to 1/60; (3) The minimum guaranteed monthly retirement allowance increased from $40 to $60 to apply at age 65 or over with credit for 20 years of service or at age 70 with prior service credit; (4) A death benefit of $300 prOVided for retired persons; (5) A guaranteed percentage of final compensation for each year of service as a member, provided for Miscellaneous Members; (6) The maximum of $5,000 per annum of compensation to be included in compu- tations under the Retirement Law, removed; (7) Normal service retirement age for Local Safety members reduced from 60 to 55 and basis of benefits increased. B. Agency may elect to apply to its contract the 1949 amendments to the Retirement Law, briefly as follows: (8) Prior service allowances provided for Miscellaneous Members, equal to one- sixtieth of final compensation upon service retirement at age 60 or its actuarial equivalent upon service retirement ages 55 to 65 and over; (9) A guaranteed percentage of final compensation provided for each year of service as a Local Safety Member. C. (10) Agency may elect to make contributions of its members who were or will be absent on military service, in addition to its contributions as an employer. D. Agency may elect to increase the retirement allowances payable to retired persons and provide a death benefit for them by applying to such persons the provisions of its contract: (11) As that contract existed on June 30, 1950, or (12) As that contract would exist if amended as outlined under paragraph "A" above, or (13) As that contract would exist if amended as outlined under paragraphs "A" and "B" above. F 591 5-51 1500 COATES. HERFURTH & ENGLAND This Summary refers to CONSULTING ACTUARIES the valuation under 225 CROCKER BUILDING - SAN FRANCISCO 4 I. Agency's Contract . CALIFORNIA as at June 30, 1950, without amendment. Summary 21 Public Agency Valuation as of July 1, 1950 ..-.... Agency Name CITY OF SAllTA .~IA Agency Number 137 Miscellaneous Data 1.** Min:illlum Normal Age at Voluntary Service Retirement Local Safety Members 55* ~ 2. Number of Members (a) On Duty (b) Not on Duty 114 3. Annual Salaries, members on duty onl~385,452.00 5. Number of Retired Members 6. Annual Prior Service Pension 7. Annual Members' Contrib. % Payroll $ 42,332.64 10.9B Misc. Members 60 (1/60)* .G~~l5l:)*-"{ Total 241 17 355 17 $691,128.00 $1,076,580.00 30 30 $ 28,410.00 $ 28,410.00 $ 63,476.64 $ 105,809.28 9.1S 9.83 Net Benefits, All Members 28.** P.V.iHf-ll- all Net C.S. Benefits other than Ord. Death Less Agency Accum. Contribs. on hand Balance to be provided by Agency % P.V. of Future Salaries 29. 3(). 31. 32. 33. 34. * *If *** P.V. Net Ord. Death Benefits Less Agency Accum. Contribs. on hand Balance to be provided by Agency % P. V. of Future Salaries P.V. Prior Service Benefits Less Agency Accum. Contribs. on hand Balance to be provided by Agency Annual Installment to provide (28) % of Annual Salaries Annual Installment to provide (29) % of Annual Salaries Total Annual hstallment, Curro Servo (31 and 32) % of Ar.nual Salaries $1, ~.00,065.00 255,715.00 $ o~,*,')vu.vU 7.565 $ 74,873.00 20.705.00 $ 54.173.00 .485 $ 957.213.00 88,577.00 $ 858,541.00 $ 81.443.00 7.565 >/' $ 5,221.00 " " .485 -'I' '\ . , $ 86/564.00 8.950- Annual Installment to liquidate Prior S€.rvice (30) in 22 years, i.e., Balance of period originally selected % of Annual Salaries H 51.806...00 ~ J.g 1 4.812 --..----- . 195' ~:h!::do~:~--- s&~e numbers as in previous revaluation summaries. li' ")')'1').,. c'. c' , c'rv' July 17th Cross out one. Items bear the f'N'""nt, V"lll".