HomeMy WebLinkAboutAmendment-74-141`11(f
AMENDMENT TO CONTRACT BETWEEN TrIam
BOARD OP ADVaNISTRATION
PUBLIC EMPLOYEBW RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OP THE
CITY OP SANTA ANA
The Board of AdMinistrationg Public Employees:' Retirement' SYstemt hereinafter
referred to as Board and the CITY COUNCIL of the CITY Op SANTA ANAo hereinafter
referred to as Public Agency having entered into a contract under data Of November
259 1946t effective July 19 19479 and as amended effective October 11 19519
February 19 1954, September 11 19569 July 19 1959g November 11 19609 September It
1963 April It 1964$ February It 1.9659 January 160 19699 and November 19 19709 and
as provided by Chapters 170 and 3169 Statutes of 19710 which provide for participa-
tiOn of Public Agancyp hereby agree as follows:
A Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective July It 19470 and are hereby replaced by the following paragrypho,
numbered 1 through 8 inclusive:
1. All words and terms used herein which are defined in the Public H&M loy
=' ROtirOmant Law shall have the meaning as defined therein unless
otherwise Specifically provided* ''Normal retirement age" shall mean
age 60 for Wc011aueous members and age 50 far local Safety members,
2* Public Agency shall participate in the Public Employees' Retirement
System from and after July 11 19479 making it,,.4 employees as her.0jyj-
after provided, members of said System subject to , all provisions of
the Public Employees' Retirement Law except ouch as apply only On oleo_
tics, Of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except such as by express pro-,
vision thereof apply only on the election of contracting agencies,
Employees of Public Agency in the t0llOwillg *lasses shall become members'
of said Retirement System except Ruch in each such class as are excluded
by law or this agreements
ao Local. firemen (herein referred to an local safety Members);
✓ b. Local policemen (heroin referred to as local oafety members);
K 00 Employees other than local onfetty, members (herein referred to as
n1sc011anaoua members),
The followin
r-' 014PIOY000 shall be excluded from membership In said
Retirement System:
NO ADDITIONAL EXCLUSIONS
4. The frootion, of final COVTOnsatlan to be provided for each year of
credited prior and current oepyloe as a miscellaneous member shall
be that provided in section 21251,13 of said Retirement Law.
Ret. Form 702.1
5o The following additional provisions of the Public Employees, Retirement
Law which apply only upon election Of a contracting agemay shall apply
to the Public Agency and its employees,
ao The fraction of final compensation to be provided for each year of
credited prior and current service as a local safety member shall
be that provided in Section 21252.01 of the Retiromaat Law.
bo Section 21380.7 (providing, for allowances for survivors of maim+
bore covered under the program upon death before retirement).
�
,�� �� aro Section 21263 (providing upon death of a miscellaneous or local
Q b safety member who retired for service or disability for the can.
tinua•tion of one-half the retirement allowance to certain survivors)*
6. Public Agency shall contribute to said Retirement System as follows,
vo With respect to miscellaneous members, the public agency shall
aontributa the fol.loCH percentages of monthly, salaries earazod
�b as miseellarseous members of said Systems
(1) 1.53 percent until duns 309 1580 on account of the liability
for prior service benefits.
(2) 9.81 percent on account of the liability for current service
benefits.
(3) 0069 percent on account of the liability Or tv, 1959 Sgry voce
program.
bo With respect to local safety members, the public agency shall con-
tribute the following percentages of MUMbly salaries earned as
10001 safety members of said Systema
(1) 20153 percent until mune 309 1979 on account of the liability
for prior service benefits,
(2) 21.382 poaoeat on account of the liability for current servi.oe
benefits.
(3) 00069 paresut on 9000un.t of the liability for the 1959 Survivors
prograaao
at A reasonable amount per rnanum9 as fined by Board to cover the costs
Of administering said System as it affeoto the employees of Public
A.gs % not including the costs of s3acoial valuations or the period»
ical investigation and Yaluation required by law.
d. A reasonable amount a.9 fixed by the 13oraxop payable in one install.
mant as the occasions arise, to cover costs of special valuations
on account Of enplcyees of :public Agency, and costa of the period
Mal Investigation and valuation required by law.
£tato 1401M 702-P
7. Contributions required by Public Agency and its employees shall be sub,
jest to adjustment by Board on aacotatit of amendmesats to the Public
Bmployeess Retirement Law, Fuad on account of the e:rpexd.ence under the
Retirement Systems as detend.ned by the periodical investigation and
valuation required by said Retirement Law.
/Os Contributions required of Public Agency and its employees shall be paid
by Public Agency to the retirement System withirs thirty days after the
end of the period to which said contributions refer. If more or less
\d than the correct amount of contilbutions is pad for any periods proper
adjustment shall be made in concectiost with subsegment raystittances$ or
adjustments on account of errors in contributions required of any
employee may be made by direct cash payments between the employee and
Board. Payments by Paablic^ Agency to Board may be made in the form of
warrantsp bank ohecksy bank, draftsp certified checks, money orders,
Or casho
Do This waendment shall be attached to said contract and shall be effective
on the day of
Witness our hands this day of
. ..�,
BOARD CP ADMINISTRATION
I'1JBUC NI Q s'Sc IMITIMIMMINT SYS'TM
BY
V�illiam 114 laayne® Rareuaativa Cifficex
CITY COUNCIL
OP UM
CIT" 01' SANTA AHIL
B
ERR M. PATTERSON, MAYOR
Attests
.l<
kot. Fam 702..',1
7. Contributions required by Public Agency end its employees skull be sub.
jeot to adjustment by Board on account of amendments to the Public
Employees' Retirement Laws and on account of the experience under the
Retirement Systems as determined by the periodical investigation and
valuation required by said Retirement Law.
8. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within thirty days oftrr the
end of the period to which said contributions refer. If more or less
than the correct amount of contributions is paid for any periods proper
adjustment shall be made in connection with subsequent remittances, or
adjustments on account of errors in contributions required of any
employee may be made by direct cash payments between the employee and
Board. Payments by Public Agency to Board may be made in the form of.
warrants, bank checks' bank drafts, certified checks, money orders,
or cash.
H. This amendment shall be attached to said con et and shall beieffective
on the tie z Y day of J 91/ -
Witness
/-Witness our hands this � �' day of c
BOARD OF ArMISTRATION CITY COUNCIL
PUBLIC FIELOYEW RETIREMENT SYSTEM OP M,
CITY OF SANTA ANA
BY04WV "+rs/
eai Officer
RRY M. PATTERSON, MAYOR
Attests
Rett Form 702-'3
0
Tu; — Bruce C. Spragg, City Mana>;er
From: D. E. Bott, Director of Pew nel
Subject: P.E.R.S. CONTRACT AMENDMENTS
AGENDA ITEM
Date March 14, 1974
On February 4, 1974, the City Council adopted a Resolution of Intention to amend
our contract with the Public Employees' Retirement System in accordance with agree-
ments reached during last year's "Meet and Confer" sessions with representatives of
the employee associations. Also, a secret ballot election was conducted for the
affected public safety employees as required by Section 20457 of the Government
Code due to their individual contribution rates being increased to a uniform 9%.
There were only five disapproving votes of the 424 votes cast. These two preliminary
steps are required by P.E.R.S. before they will forward the ordinance form (attached)
necessary to complete our governing body's final action. Such final action requires
an affirmative vote of the majority of the City Council.
RECOMMENDATION
It is recommended that the attached ordinance be placed on the agenda for City Council
consideration at their meeting of March 18 in order that we can meet those commitments
contained in our "Meet and Confer" agreements in a timely fashion.
Attachment
cc: City Attorney
Director of Finance
ACTION OF COUNCIL
NF1i, /ZQ
DAT E2n �e �V__CUQ_(x'
CLERK CF THE CCUNCiL
EXHIBIT A
AXENDIMEDNT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF TETE
CITY OF SANTA ANA
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board and the CITY COUNCIL of the CITY OF SANTA ANA, hereinafter
referred to as Public Agency having entered into a contract under date of November
25, 1946, effective July 1, 1947, and as amended effective October 19 1951,
February 1, 1.954, September 1, 1956, July 1, 19599 November 1, 1960, September 19
1963 April 11 1964, February 11 1965, January 16, 1.9692 and November 1, 1970, and
as provided by Chapters 170 and 316, Statutes of 1971, which provide for participa-
tion of Public Agency, hereby agree as follows:
A. Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective July 1, 1947, and are hereby replaced by the following paragraphs
numbered 1 through a inclusive:
1. All words and terms used herein which are defined in the Public Employ-
ees' Retirement Law shall have the meaning as defined therein unless
otherwise specifically provided. tBNormal retirement age" shall mean
age 60 for miscellaneous members and age 50 for local. safety members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1947, making its employees as herein-
after provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on elec-
tion of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except such as by express pro-
vision thereof apply only on the election of contracting agencies.
3. Employees of Public Agency in the following classes shall become members'
of said Retirement System except such in each such ol.ass as are excluded
by law or this agreement:
a. Local. firemen (herein referred to as local. safety members);
b. Local policemen (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
miscellaneous members).
The following employees shall be excluded from membership in said
Retirement System:
NO ADDITIONAL EXCLUSIONS
4. The fraction of final compensation to be provided for each ,year of
credited prior and current service as a miscellaneous member shall
be that provided in Section 21.251.13 of said Retirement Law.
Ret. Form 702-1.
5. 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. The fraction of final. compensation to be provided for each year of
credited prior and current service as a local safety member shall
be that provided in Section 21252.01 of the Retirement Law.
b. Section 21380-7 (providing for allowances for survivors of mem-
bers covered under the program upon death before retirement).
c. Section 21263 (providing upon death of a miscellaneous or local
safety member who retired for service or disability for the con-
tinuation of one-half the retirement allowance to certain survivors).
6. Public Agency shall contribute to said Retirement System as follows:
a. With respect to miscellaneous members, the public agency shall
contribute the following percentages of monthly salaries earned
as miscellaneous members of said System:
(1) 1.53 percent until June 30, 1980 on account of the liability
for prior service benefits.
(2) 9.81 percent on account of the liability for current service
benefits.
(3) 0.69 percent on account of the liabil.ity for the 1959 Survivors
program.
b. With respect to local safety members, the public agency shall con-
tribute the following percentages of monthly salaries earned as
local safety members of said System:
(1) 2.158 percent until June 30, 1979 on account of the liability
for prior service benefits.
(2) 21.382 percent on account of the liability for current service
benefits.
(3) 0.089 percent on account of the liability for the 1959 Survivors
program.
c. A reasonable amount per annum, as fixed by Board to cover the costs
of administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or the period-
ical investigation and valuation required by law.
d. A reasonable amount as fixed by the Board, payable in one install-
ment as the occasions arise, to cover costs of special valuations
on account of employees of Public Agency, and costs of the period-
ical investigation and val.uation required by law.
Bet. Form 702-2
7. Contributions required by Public Agency and its employees shall be sub—
ject 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 periodical investigation and
valuation required by said Retirement Law.
£i. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within thirty days after the
end of the period to which said contributions refer. 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, or
adjustments on account of errors in contributions required of any
employee may be made by direct cash payments between the employee and
Board. Payments by Public Agency to Board may be made in the form of
warrants, bank checks, bank drafts, certified checks, money orders,
or cash.
B. This amendment shall. be attached to said contract and shall be effective
on the day of
Witness our hands this
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
William E. Payne, Executive Officer
day of
CITY COUNCIL
OF THE
CITY OF SANTA ANA
"'>
BY
Presiding Off' mer° —'��
Ret, Form 7023
SUMMARY OF MAYOR PROVISIONS
Local Safety Members - 7.% at 50
Retirement Program
MEMBERSHIP
Membership is compulsory for all employees, other than elective officials, who
are employed one-half time or more.
SERVICE RETIREMENT
The earliest retirement age is 50; the normal retirem=vent age is 50; and the
compulsory retirement age is 60. A local safety member may retire any time after
age 50 provided he has at least 5 years of service.
The monthly income is determined by age at retirement, years of credited service,
and "final. compensation". The latter term means the average monthly salary (excluding
overtime) earned during the final 36 consecutive months unless member specifically
requests another 36 consecutive month period.
The unmodified life allowance will be "2"/, of final compensation" for each year of
safety service upon retirement at age. 50 with increasing percentages to a maximum of
2.7% at retirement at age 55. Service retirement benefit is subject to a limitation
of 75% of final compensation.
A minimum service retirement allowance: of $100 per month is guaranteed upon
compulsory retirement with credit for prior service.
DISABILITY RETIREMENT
An employee becoming disabled to the extent that he is incapable of performing
his duties shall be retired for disability. His disability will be either employment
connected (industrial disability) or otherwise (nonindustrial disability).
An employee who becomes disabled while a member of this System for reasons
arising out of his employment, will be eligible for a life income of fifty (50%) per-
cent of his final compensation. If his disability is such Chat he is also entitled
to a disability income from Social Security, the State System benefit will be reduced
by the amount of his Social Security benefit.
An employee becoming disabled for reasons not connected with his employment shall
be eligible for disability retirement provided he has at least 5 years of service;
such disability allowance is equal. to 1.8% of final compensation for each year of
service, with a guarantee of 1/3 of such final compensation for most employees who have
rendered at least. 10 years of service. The 'ordinary" disability retirement allowance
shall under no circumstances exceed the service retirement allowance which would
become payable at age 60 if employment could be continued to that age.
DEATH BENEFITS
Death Before Retirement
Basic Death Benefit This benefit is a refund of the member's accumulated
contributions plus six months' salary provided }.7e has been a member
for six -years or. more. For those who die before completing six years
of membership, the benefit is one month's salary for each year of
membership plus refund of contributions. The salary referred to is
that earned during the year preceding death. Prior service does not
count toward this benefit.
Industrial Death If death is service -connected in the judgment of the
Industrial Accident Commission, a monthly income is paid to the widow
for life (or until remarriage) instead of the above basic death
benefit. However, if she is also eligible for survivor benefits from
Social, Security because of the member's death, the States system
benefit will be reduced by the amount of such Social Security so long
as Social Security benefits are payable (usually until the youngest
child reaches 18 and after the widow reaches age 62). The total,
including Social Security, would be 50% of "final compensation". If
death was caused by external violence or physical force, the total
benefit (including Social Security) would be increased to the follow-
ing percentages of "final compensation" so long as the widow lives
and does not remarry:
Widow with
3
or more children under 18
75%
Widow with
2
children under 18
70%
Widow with
1
child under 18
62Yb
1957 Survivor Benefit Employees with 5 or more years of service who have
reached the minimum age for service retirement have further death
protection under this item. Here the surviving widow can elect to
receive either the basic death benefit or a monthly income equal to
one-half the unmodified retirement allowance the employee was eligible
for on the date of his death. The monthly income lasts until the
widow's death or remarriage with a guarantee that the System will pay
as much as under the basic death benefit.
1959 Survivor Benefit A monthly allowance shall be paid to certain sur-
vivors of a member who dies before retirement.
Leath After Retirement
The death benefit is $500.. This is in addition to any payments which
might be made under an optional. retirement benefit chosen by the
member at retirement.
One-half Continuance provides upon the death of a local safety member who
has retired for service, or disability, for the
continuation of one-half the retirement allowance to certain survivors.
TERMINATION OF EMPLOYMENT
Upon termination of employment, an employee with at least 5 years of service may
either leave his contributions with the System and receive, upon attaining retirement
age, the retirement benefit he has earned, or he may withdraw his contributions (plus
interest), thus terminating his membership in the System and receiving no retirement
benefits. Except, (1) a member with less than 5 years of service shall not have the
privilege of leaving his contributions with the System, but shall automatically have
his contributions, plus interest, refunded upon termination of employment, and (2) a
member who is transferring to employment with another agency which is covered under
the System shall not have the right of withdrawing his accumulated contributions.
EMPLOYEE CONTRIBUTIONS
Each member makes monthly contributions to the System which are deducted from his
salary. The rate of contribution (percentage of pay) is 9% of salary earned,
exclusive of overtime, on the date this formula becomes effective.
The employer also contributes toward the cost of the benefits. The amount con-
tributed by the employer for current service retirement benefits will, on the average
exceed the cost to the employee. In addition, the employer bears the entire cost of
prior service benefits, the industrial death and disability benefits,
All contribution rates are subject to revision by the Board of Administration.
r
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
ss.
County of Orange,
Rose Stanfield
r am a citizen of the United States and a resident of
the County aforesaid; I am over the age of eighteen
years, and not a party to or interested in the above
entitled matter. I am the principal clerk of the
printer of The Register, a newspaper of general cir-
culation, published in the City of Santa Ana, County
of Orange, and which newspaper has been adjudged
a newspaper of general circulation by the Superior
Court of the County of Orange, State of California,
under the date of November 29, 1905, Case Num-
ber A21046; that the notice of which the annexed
is a printed copy, has been published in each reg-
ular and entire issue of said newspaper and not in
any supplement thereof on the following dates, to.
wit:
A2rJ1 12, 1974
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Executed at Santa Ana, California.
Date --------- A_pri-_1---12-1 ---------------- - 19
Bose Stanfi.eld SigDture�Tgglals
This space is ,or the County Clerk's Filing Stamp
Proof of Publication of
Notice of Ordinance ATS 1201
DSP 165 PROOF OF PUBLICATION
Paste Clipping of
Notice
SECURELY
In This Space
CERTIFICATION OF FINAL
ACTION 0 G OVERNING E30DY
Board of Administration
Public Employees' Retirement System
P.O. Box 1953
Sacramento, California W09
I hereby certify:
That the City Council
DATE: 4/4/74
of the City of Santa Ana
— ado ted on April 1, 1974
P _ by an affirmative
vote of a majority of the members of said governing body, Ordinance
No.NS-1201 Amendment to Contract
approving the attached
between the governing body of said Agency and the Board of Administration of the
Public Employees' Retirement System, a certified copy of said__ Ordinance
in the form furnished by said Board of Administration being attached hereto.
Clerk
c �
City of &anta Ana
Name of Agency
Jt
PERS-ACTS (1/74)
ORDINANCE NO. NS -1201
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD
OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EM-
PLOYEES' RETIREMENT SYSTEM.
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
SECTION 1. That an amendment to the Contract between the
City Council of the City of Santa Ana and the Board of Adminis-
tration, California Public Employees' Retirement System is here-
by 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 2. The Mayor of the City Council is hereby autho-
rized, empowered, and directed to execute said amendment for
and on behalf of the City of Santa Ana
SECTION 3. This Ordinance shall take effect thirty (30)
days after the date of its adoption, and prior to the expira-
tion of fifteen (15) days from the passage thereof shall be
published at least once in the Register, a newspaper of general
circulation, published and circulated in the City of Santa Ana
and thenceforth and thereafter the same shall be in full force
and effect.
PASSED AND ADOPTED by the City Council of the City of
Santa Ana at its regular meeting held on the lst day of
ADril , 1974.
ATTEST:
JFRRY 14.. PAn -RSO
MAYOR
CLERK OF THE COUNCIL
ORDINANCE NO. NS -1201
PAGE TWO
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SANTA ANA )
I, FLORENCE I. MALONE, do hereby certify that I am the
Clerk of the Council of the City of Santa Ana; that the fore -
ging Ordinance was introduced to said Council at its regular
_.. meeting held on the 18th day of March , 1974,
and was again considered by said Council atits meeting held
on the 1st day of April I, 1974, and was at
said meeting passed and adopted by the following vote, to wit:
AYES, COUNCILMEN: Griset, Garthe, Markel, Yamamoto,
Patterson, Evans, Ward
NOES, COUNCILMEN: None
ABSENT, COUNCILMEN: None
CLERK OF THE COUNCIL
I
April 4, 1974 '
Public Employees
Retirement System.
1416 Ninth Street
P. 0. }fox 1953
Sacramento, California 95€309
Attention: Mr. Kisuk Yang, Chief Actuary
P. E. R. S. CONTRACT AMENDMENT - SECTION 020
I
As requested in your letter of March 11, 1974, to D. E. Butt, Director of
Personnel for the City, we are enclosing the following documents:
1. Amendment to Contract Form 702, in duplicate, executed by the Mayor
and Clerk of the Council
2. Ordinance NS -1201, approving amendment to contract, certified, in
duplicate
3. Certification of Final Action (Form ACT -5), one copy
Thank you for your assistance in this matter.
Cordially,
FLORENCE I. MALONE
CLERK OF THE COUNCIL
cc: Personnel Director
with enclosures
Enclosures
�1 6
To: Bruce C. Spragg. City Manager
From: D. E. Bott, Director of Personne:
Subject: P.E.R.S. CONTRACT AMENDMENTS
AGENDA ITEM
DateJanuary 28._ 974
During last year's Meet and Confer11 sessions, the City of Santa Ana reached agree-
ment with employee organization representatives to amend certain provisions of our
Public Employees' Retirement System contract. Specifically, these amendments will
provide a 2% at SO formula for public safety members and a one-half continuance or
widow's benefit for both miscellaneous and safety members. Attached is a reply
from P.E.R.S. outlining the procedure required in order to enact such changes.
Initially, a resolution of intention must be acted upon by the City Council. A
secret ballot election must be conducted for public safety members in order to
allow for their expression of approval or disapproval. This is due to their
individual contribution rates being affected by such amendments whereas the
individual contribution rates for miscellaneous employees will remain unchanged.
In my opinion, it would be more appropriate for such an election to be conducted
by the Clerk of the Council as apparently suggested by the attached certification
of employee election form.
The reply from P.E.R.S. also describes an option available to the City which provides
certain protections for public safety members age 60.and over with less than 20
years of service credit. We have no employees in this situation and, therefore,
this section would not be applicable.
RECOMMENDATION
It is recommended that the Resolution of Intention be placed on the agenda for
Council consideration at their meeting of February 4. Our agreement with the
employee associations calls for these retirement system benefits to be put into
effect by June 1, 1974, and it is highly desirable that we commence the process
at this time in order to assure our ability to meet this commitment.
NOTE: A copy of the P.E.R.S. Actuarial Report is attached. I have attached a
supplemental sheet which reflects both the present and proposed agency
contribution rates for comparative purposes. An additional report pre-
pared by the Finance Director indicates the cost impact for the 1974-75
fiscal year.
Attachments
cc: Director of Finance
Clerk of the Council
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MISCELLANEOUS EMPLOYEES
AGENCY CONTRIBUTIONS
PRESENT PROPOSED
Current Service
Retirement Benefits
7.45
9.59
Death Benefits
.22
.22
1959 Survivors
.69
.69
Total Current Service
8.36
10.50
Prior Service
1.04
1.53
Total Agency
9.40
12.03
PUBLIC SAFETY
AGENCY CONTRIBUTIONS
PRESENT
PROPOSED
Current Service
Retirement Benefits
9.807
21.294
Death Benefits
.094
.088
1959 Survivors
.113
.089
Total Current Service
10.014
21.471
Prior Service
1.164
2.158
Total Agency
11.178
23.629
PUBLIC EMPLOYEES' RETIREMENT SYSTEM ACTUARIAL REPORT
PERS-ACT-14 (11/71)
Agency CITY OF SANTA ANA 0137
Name Employer Number
1971 FACTORS Miscellaneous 1 firemen & Policemen
P� ; Formula Proposed FormWIa
A. Valuation specifications:
1. Valuation "as of" date 7-1-72
2. Formula
3. Minimum Monthly Service Retirement Benefit
4. 1957 Survivors
5. 1959 Survivors
6. One-half continuance
B. Agency contributions rate for current
service (as % of member payroll) over
30 year funding period:
a. For retirement benefits
b. For death benefits
c. For 1959 Survivors
d. Total current service rate
C. Agency contribution rate for prior
service (as % of member payroll)
D. Total Agency Contributions:
a. Total Agency Contribution Rate
January 14, 1974
Date
1/50
2% at 50
$100
$100
0.69
Yes
Yes
21.471%
Yes
Yes
7.. 5 ' 0
Yes
Yes
9.59'
21.294)
0.22
0.088
0.69
0.089
10.5
21.471%
6/30/80
6/30/79
7.. 5 ' 0
2.158)00
12.01 23.629%
KISUK YANG l/J
ACTUARY
mo
PUBLIC EMPLOYEES' RETIREMENT SYSTEM ACTUARIAL REPORT
PERS-ACT-14 (11/71)
Agency CITY OF SANTA ANA
Name
1971 FACTORS
0137
Employer Number
Miscellaneous I Firemen & Policemen
Ps_
P_=_(2oFc�"crtteD
Formula Pronased Formula
A. Valuation specifications:
1. Valuation 11as of" date 7-1.,72
2. Fo ranula 1/50 2% at 50
3. Minimum Monthly Service Retirement Benefit $100 $100
4. 1957 Survivors Yes Yes
5. 1959 Survivors Yes Yes
6. One-half continuance Yes Yes
B. Agency contributions rate for current
service (as % of member payroll) over
30 year funding period:
a. For retirement benefits
9.50
21.294%
b. For death benefits
0.22
0.088
c. For 1959 Survivors
0.69
0.089
d. Total current service rate
10.50%
21.471%
C. Agency contribution rate for prior
6/30/80
6/30/79
service (as % of member payroll)
]..53%
2.158%
D. Total Agency Contributions:
a. Total Agency Contribution Rate
12.OV0
3.629/0
January 149 1974
Date
KISUK YANG
ACTUARY
m
9'
CITY COUNCIL
Old THE
CITY OF SANTA ANA
WIMRNANs the public Rmployees" Retirement law permits the participation of public
agencies and their employees in the Public Nmployees" letiremont System
by the execution of a contraoC, and sets forth the procedure by which
said, public, agencies may elect to subject themselves and thein* employees
to amendments to said law) and
WMUkO, one of the steps required in the procedure to amend this contract is
the adoption by the legislative 'body of the publics agency of a resolu-
tion giving notice of .its intention to approve an amendment to said
centrad, which resolution shell contain a summary of the changes
proposed in said contract) and
WHMMat the following is a summmy of the major provieicna of the proposed chan$esa
1* provides upon death of a miscellaneous or local safety member who
retired for service or disability for the continuation of orae -half
the retirement allowance to certain survivors.
p. Safety formula changed to at 50 (from 1/e at 55).
NOW, '+i RSFORN, 8N IT fiBSOV%D# that the CITY COUNCIL of the CITY OV SANTA ANA
gives, grad it does hereby give, notice of intention to approve an amend-
mont to contract between said CITY COUNCIL and the Board of Administration
of the Public :employees° Retirement System, a copy of said amendment and
a summary of the major provisions of the proposed changes beim; attached
hereto, marked Nxhibits °"A" and "V*$ and by this reference made a part
hereof.
CITY COUNCIL
k'
ams
Rot. porm 122
For use by POLICEMEN (hereafter referred to as Local Safety Members)
of the CITY OF SANTA ANA to determine their approval or disapproval of the proposal
of the CITY COUNCIL of the CITY OF SANTA ALTA to amend its contract with the Board
of Administration of the Public Employees' Retirement System.
Shall the contribution rates of IVote by making a
the local safety members of the YES Cross (%) in the
Public Agency named above be space which indi-
changed to provide 2ro at 50 ben- NO cates your desire.
efits (instead of 1/2 at 55)7
SUMMARY OF MAJOR PROVISIONS
Local Safety Members - 22 at 50
Retirement Program
MEMBERSHIP
Membership is compulsory for all employees, other than elective officials, who
are employed one-half time or more.
SERVICE RETIREMENT
The earliest retirement age is 50; the normal retirement age is 50; and the
compulsory retirement age is 60. A local safety member may retire any time after
age 50 provided he has at least 5 years of service.
The monthly income is determined by age at retirement, years of credited service,
and "final compensation". The latter term means the average monthly salary (excluding
overtime) earned during the final 36 consecutive months unless member specifically
requests another 36 consecutive month period.
The unmodified life allowance will be "22 of final compensation" for each year of
safety service upon retirement at age 50 with increasing percentages to a maximum of
2.72 at retirement at age 55. Service retirement benefit is subject to a limitation
of 752 of final compensation.
A minimum service retirement allowance of $100 per month is guaranteed upon
compulsory retirement with credit for prior service.
DISABILITY RETIREMENT
An employee becoming disabled to the extent that he is incapable of performing
his duties shall be retired for disability. His disability will be either employment
connected (industrial disability) or otherwise (nonindustrial disability).
An employee who becomes disabled while a member of. this System for reasons
arising out of his employment, will be eligible for a life income of: fifty (507) per-
cent of his final compensation. If his disability is such that he is also entitled
to a disability income from Social Security, the State System benefit will. be reduced
by the amount of his Social Security benefit.
An employee becoming disabled for reasons not connected with his employment shall
be eligible for disability retirement provided he has at least 5 years of service;
such disability allowance is equal to 1.8% of final compensation for each year of
service, with a guarantee of 1/3 of such final compensation for most employees who have
rendered at least 10 years of service. The "ordinary" disability retirement allowance
shall under no circumstances exceed the service retirement allowance which would
become payable at age 60 if employment could be continued to that age.
DEATH BENEFITS
Death Before Retirement
Basic Death Benefit This benefit is a refund of the member's accumulated
contributions plus six months' salary provided he has been a member
for six -years or more. For these who die before completing six years
of membership, the benefit is one month's salary for each year of
membership plus refund of contributions. The salary referred to is
that earned during the year preceding death. Prior service does not
count toward this benefit.
Industrial Death If death is service -connected in the judgment of the
Industrial Accident Commission, a monthly income is paid to the widow
for life (or until remarriage) instead of the above basic death
benefit. However, if she is also eligible for survivor benefits from
Social Security because of the member's death, the State system
benefit will be reduced by the amount of such Social Security so long
as Social Security benefits are payable (usually until the youngest
child reaches 18 and after the widow reaches age 62). The total,
including Social Security, would be 50% of "final compensation.". If
death was caused by external violence or physical force, the total
benefit. (including Social Security) would be increased to the follow-
ing percentages of "final compensation" so long as the widow lives
and does not remarry:
Widow
with
3
or more children under 18
75%
Widow
with
2
children under 18
70%
Widow
with
1
child under 18
62 A,/
1957 Survivor Benefit Employees with 5 or more years of service who have
reached the minimum age for service retirement have further death
protection under this item. Here the surviving widow can elect to
receive either the basic death benefit or a monthly income equal to
one-half the unmodified retirement allowance the employee was eligible
for on the date of his death. The monthly income lasts until the
widow's death or remarriage with a guarantee that the System will pay
as much as under the basic death benefit.
1959 Survivor Benefit A monthly allowance shall be paid to certain sur-
vivors of a member who dies before retirement.
Death After Retirement
The death benefit is $500. This is
might be made under an optional
member at retirement.
in addition to any payments which
retirement benefit chosen by the
One-half Continuance provides upon the death of a local safety member who
has retired for service, or disability, for the
continuation of one-half the retirement allowance to certain survivors.
TERMINATION OF EMPLOYMENT
Upon termination of employment, an employee with at least 5 years of service may
either leave his contributions with the System and receive, upon attaining retirement
age, the retirement benefit he has earned, or he may withdraw his contributions (plus
interest-), thus terminating his membership in the System and receiving no retirement
benefits. Except, (1.) a member with less than 5 years of service shall not have the
privilege of leaving his contributions with the System, but shall automatically have
his contributions, plus interest, refunded upon termination of employment, and (2) a
member who is transferring to employment with another agency which is covered under
the System shall not have the right of withdrawing his accumulated contributions.
EMPLOYEE CONTRIBUTIONS
Each member makes monthly contributions to the System which are deducted from his
salary. The rate of contribution (percentage of pay) is 9% of salary earned,
exclusive of overtime, on the date this formula becomes effective.
The employer also contributes toward the cost of the benefits. The amount con-
tributed by the employer for current service retirement benefits will, on the average
exceed the cost to the employee. In addition, the employer bears the entire cost of
prior service benefits, the industrial death and disability benefits.
All contribution rates are subject to revision by the Board of Administration.
Per use by FIHED1EN (hereafter referred to as Local Safety Members)
of the CITY OF SANTA ANA to determine their approval or disapproval of the proposal
of the CITY COU11CIL of the CITY OF RUTTA ANA to amend its contract with the Hoard
of Administration of the Public Employees' Retirement System.
Shall the contribution rates of
the local safety members of the
Public Agency named above be
changed to provide 2'p at 50 ben-
efits instead of 1/2 at r.5 ?
YES
Vop by making a
Cross (X) in the
spaos which indi-
cates your desire*
NO
SUMMURY OF MAJOR PROVISIONS
Local Safety Members - 2% at 50
Retirement Program
MEMBERSHIP
Membership is compulsory for all employees, other than elective officials, who
are employed one-half time or more.
SERVICE RETIREMENT
The earliest retirement age is 50; the normal retirement ace is 50; and the
compulsory retirement.age is 60. A local safety member may retire any time after
age 50 provided he has at least 5 years of service.
The monthly income is determined by age at retirement, years of credited service,
and "final compensation". The latter term means the average monthly salary (excluding
overtime) earned during the final 36 consecutive months unless member specifically
requests another 36 consecutive month period.
The unmodified life allowance will be "2% of final compensation" for each year of
safety service upon retirement at age 50 with increasing percentages to a maximum of
2.7% at retirement at age 55. Service retirement benefit is subject to a limitation
of 75% of final compensation.
A minimum service retirement allowance of $100 per month is guaranteed upon
compulsory retirement with credit for prior service.
DISABILITY RETIREMENT
An employee becoming disabled to the extent that he is incapable of performing
his duties shall be retired for disability. His disability will be either employment
connected (industrial disability) or othenaise (nonindustrial disability).
An employee who becomes disabled while a member of this System for reasons
arising out of his employment, will be eligible for a life income of fifty (50%) per-
cent of his final compensation. If his disability is such that he is also entitled
to a disability income from Social Security, the State System benefit will be reduced
by the amount of his Social Security benefit.
An employee becoming disabled for reasons not connected with his employment shall
be eligible for disability retirement provided he has at least 5 years of service;
such disability allowance is equal to 1.8% of final compensation for each year of
service, with a guarantee of 1/.3 of such final compensation for most employees who have
rendered at least 10 years of service. The "ordinary" disability retirement allowance
shall under no circumstances exceed the service retirement allowance which would
become payable at age 60 if employment could be continued to that age.
DEATH BENEFITS
Death Before Retirement
Basic Death Benefit This benefit is a refund of the member's accumulated
contributions plus six months' salary provided he'has been a member
for six -years or more. For those who die before completing six years
of membership, the benefit is one month's salary for each year of
membership plus refund of contributions. The salary referred to is
that earned during the year preceding death. Prior service does not
count toward this benefit.
Industrial Death If death is service -connected in the judgment of the
Industrial Accident Commission, a monthly income is paid to the widow
for life (or until remarriage) instead of the above basic death
benefit. However, if she is also eligible for survivor benefits from
Social Security because of the member's death, the State system
benefit will be reduced by the amount of such Social Security so long
as Social Security benefits are payable (usually until the youngest
child reaches 18 and after the widow reaches age 62). The total,
including Social Security, would be 50% of "final compensation". If
death was caused by external violence or physical. force, the total
benefit (including Social Security) would be increased to the follow-
ing percentages of "final compensation" so long as the widow lives
and does not remarry:
Widow
with
3
or more children under 18
75%
Widow
with
2
children under 18
70%
Widow
with
1
child under 18
621.
1957 Survivor Benefit Employees with 5 or more years of service who have
reached the minimum age for service retirement have further death
protection under this item. Here the surviving widow can elect to
receive either the basic death benefit or a monthly income equal to
one-half the unmodified retirement allowance the employee was eligible
for on the date of his death. The monthly income lasts until the
widow's death or remarriage with a guarantee that the System will pay
as much as under the basic death benefit.
1959 Survivor. Benefit A monthly allowance shall be paid to certain sur-
vivors of a member who dies before retirement.
Death After Retirement
The death benefit is $500. This is in addition to any payments which
might be made under an optional retirement benefit chosen by the
member at retirement.
One-half Continuance provides upon the death of a local safety member who
has retired for service, or disability, for the
continuation of one-half the retirement allowance to certain survivors.
OF EMPLOYMENT
Upon termination of employment, an employee with at least 5 years of service may
either leave his contributions with the System and receive, upon attaining retirement:
age, the retirement benefit he has earned, or he may withdraw his contributions (plus
interest), thus terminating his membership in the System and receiving no retirement
benefits. Except, (1) a member with less than 5 years of service shall not Have the
privilege of leaving his contributions with the System, but shall automatically have
his contributions, plus interest, refunded upon termination of employment, and (2) a
member who is transferring to employment with another agency which is covered under
the System shall not have the right of withdrawing his accumulated contributions.
EMPLOYEE CONTRIBUTIONS
Each aetib er makes monthly contributions to the System which are deducted from his
salary. The rate of contribution (percentage of pay) is 9% of salary earned,
exclusive of overtime, on the date this formula becomes effective.
The employer also contributes toward the cost of the benefits. The amount con-
tributed by the employer for current service retirement benefits will, on the average
exceed the cost to the employee. In addition, the employer bears the entire cost of
prior service benefits, the industrial death and disability benefits.
All contribution rates are subject to revision by the Board of Administration.
CER'T'IFICATION OF EMPLO'TE!k� r;LECTION
PERS-ACT-15 (3/72)
(Date)
Board of Administration.
Public Employees' Retirement System
1416 - 9th Street
Sacramento, California 95814
I hereby certify:
That the following employees of the CITY OF SANTA ANA have
expressed tP:air approval or disapproval of said Agency's participation on the
Public Employees' Retirement System on the basis described in the Resolution of
Intention passed by said Agency's CITY COUNCIL
on 19--, in such manner as to permit each employee to
separately and secretly express his choice and that the outcome of such election
was as follows:
Number of Number of votes Number of votes
employees eligible approving said disapproving said
to vote participation yarticipation
a. Local Firemen as defined
in Gov't Code Section 20021
b. Local Policemen as defined
in Gov't Code Section 20020
ica¢xzd�cx''rxscmcxd�s �s
xxk�oxi�c3r.¢aac�t3czE'c�r�x
.r3m�c
- City Clerk or Secretary
sLr t Amendment
PUBLIC EMPLOYEES' RE- "MENT SYSTEM
P. O. Box. '1953, Sacra..- .,to, CA 95809
Booklet: ACT -DO -108 - September 1972
2% AT AGE 50 RETIREMENT PROGRAM
Local Safety Members
GENERAL
The Public Employees' Retirement System provides incomes for service and
disability retirement, death benefit payments, plus a guarantee that member
contributions (with interest) will be refunded to all who wish to withdraw
upon termination of employment. Membership is compulsory (except for
elected officials) for all persons employed one-half time or more.
The Legislature has provided a benefit structure for the California Highway
Patrol and local safety members of contracting agencies. This formula (2%
at age 50) provides that service retirement benefits shall be 2% of final
compensation for each year of safety service upon retirement at age 50 with
increasing percentages to a maximum of 2.7% at retirement at age 55.
The Retirement Law provides for an automatic annual adjustment of allowances
of retired persons or beneficiaries to reflect increases in cost of living
as indicated by the Consumer Price Index of the Bureau of Labor Statistics
subject to specified limits and conditions.
MEMBER CONTRIBUTIONS
Each local safety member, whether a new member of a member with years of mem-
bership, will start contributing at the uniform rate of 9% of salary earned,
exclusive of overtime, on the date this formula becomes effective. No adjust-
ment of previous member contributions is required.
SERVICE RET REMENT
Who may retire.
Normal retirement is at age 50. Retirement is compulsory at age 60 and anyone
over that, age when this formula becomes effective will be compulsorily retired
on the first day of the following month. To be eligible for voluntary retire-
ment a member must have at least five years of service (prior service counts
toward the 5 years) and have attained the minimum retirement age. Retirement
at age 60 is compulsory regardless of length of service or amount of contri-
butions.
;laRV1C1, RETIREME'N'T f3I]WITS
'Me monthly income is determined by years of credited ser-
vice, and "final compensation" 10Final compensation" is the highest average
monthly salary (excluding overtime) during the three consecutive years of
employment immediately prior to date of retirement or separation or during
any other period of three consecutive years during membership which the member
designates in his application for retirement. 'The maximum allowance is 75%
of "final compensation".
UNMODIFIED ALLOWANCE
The term "unmodified allowance" refers to the highest monthly life income
calculated under the formula. It is important to understand that the only
benefit which will. be paid upon member's death after retirement will be a
lump sun of $500 if the retiring member chooses the "unmodified allowance"
The following table shows the percentage factor to determine "unmodified
allowance" for each year of credited service:
TABLE A
AGE AT PERCENTAGE AGE AT PERCENTAGE
RETIREMENT FACTOR RETIREMENT FACTOR
50
2.000%
53
2.420%
50-1/4
2.035
53-1/4
2.455
50-1/2
2.070
53-1/2
2.490
50-3/4
2.105
53-3/4
2.525
51
2.140
54
2.560
51-1/4
2.175
54-1/4
2.595
51-1/2
2.210
54-1/2
2.630
51-3/4
2.245
54-3/4
2.665
52
2.280
55 and
2.700
52-1/4
2.315
over
52-1/2
2.350
52-3/4
2.385
EXAMPLES
Your Case
1)
Age at Retirement
50
53
55
60
2)
Years of credited service
25
25
30
14
3)
Final Compensation
$600.
$700.
$800.
$700.`—�`-�
4)
Benefit Factor (from TABLE A)
2.000%
2.420%
2.700%
2.700%
5)
Benefit Percentage (2)x(4)
50%
60.5%
75%
37.8%
6)
Unmodified Allowance
$300.
$423.50
$600.
$264.60-
OPTIONAL ALLOWANCES
When you retire, for service or disability, you are given the opportunity to
choose between the unmodified allowance and the options described below. Each
option will pay a smaller amount than the unmodified benefit, but will provide
certain death benefits in addition to the $500:
This option guarantees the return of the balance of your contributions. At
death, the Retirement System adds up that portion of the monthly benefit pay-
monts which were provided by your contributions (excluding benefits paid from
employer contributions). if the full amount of contributions has not been
paid, the balance will be paid to your beneficiary.
-2-
The following tables and examples illustrate the calculation of the
optional allowances:
OPTION NO. I - SERVICE RETIREMENT
Reduction of Unmodified Allowance
For each $1,000 of a Male Employee's Accumulated Contributions
AGE AT
RETIREMENT FACTOR
s0
.36
51
.39
52
.42
53
.46
54
.49
55
.53
56
.57
57
.61
58
.65
59
.70
60
.75
EXAMPLES Your Case
1)
Age at Retirement
53
60
2)
Unmodified Allowance
$423.50
$264.60
3)
Est. Contributions at Retirement
$20,000
$12,000 $
4)
Option 1 Reduction Factor (Table B)
,46
.75
5)
Reduction
$9.20
$9.00
6)
Option I Monthly Allowance
$414.30
$255.60 $
OPTION NO. 2
This option permits you to provide a monthly allowance for yourself and after
death have that same amount of income continue throughout the lifetime of your
beneficiary. To make this provision, you accept a reduced allowance as indi-
cated in Table C on the following page.
M
* The same amount will continue after your death for the remaining life of your. beneficiary,
-4-
TABLE
C
OPTION NO. 2
Percentage of Unmodified
Allowance Payable
to Male
Member
With
Same Amount to
Continue to
Female
Beneficiary
Age of
Female
Beneficiary
Age of
Retiring
Male
Member
50
51
52
53
54
55
56
57
58
59
60
40
77.6%
41
78.0
76.9%
42
78.4
77.3
76.1%
43
78.9
77.7
76.5
75.3%
44
79.3
78.2
77.0
75.8
74.6%
45
79.8
78.6
77.5
76.3
75.0
73.8%
46
80.2
79.1
77,9
76.8
75.5
74,3
73.0%
71.7%
70.3%
69.0%
67.5%
47
80.7
79.6
78.4
77.3
76.0
74.8
73.5
72.2
70.9
69.5
68.1
48
81.2
80.1
78.9
77.8
76.6
75.3
74.1
72.7
71.4
70.0
68.6
49
81.7
80.6
79.5
78.3
77.1
75.9
74.6
73.3
72.0
70.6
69.2
50
82.2
81.1
80.0
78.8
77.6
76.4
75.2
73.9
72.5
71.2
69.7
51
82.7
81.6
80.5
79.4
78.2
77.0
75.8
74.5
73.1
71.8
70.3
52
83.2
82.2
81.1
80.0
78.8
77.6
76.4
75.1
73.7
72.4
71.0
53
83.8
82.7
81.6
80.5
79.4
78.2
77.0
75.7
74.4
73.0
71.6
54
84.3
83.3
82.2
81.1
80.0
78.8
77.6
76.3
75.0
73.7
72.3
55
84.8
83.8
82.8
81.7
80.6
79.5
78.3
77.0
75.7
74.4
73.0
56
85.4
84.4
83.4
82.3
81.2
80.1
78.9
77.7
76.4
75.1
73.7
57
85.9
85.0
84.0
83.0
81.9
80.8
79.6
78.4
77.1
75.8
74.4
58
86.5
85.6
84.6
83.6
82.5
81.4
80.3
79.1
77.8
76.5
75.2
59
87.1
86.1
85.2
84.2
83.2
82.1
81.0
79.8
78.6
77.3
75.9
60
87.6
86.7
85.8
84.8
83.8
82.8
81.7
80.5
79.3
78.0
76.7
61
87.3
86.4
85.5
84.5
83.5
82.4
81.3
80.1
78.8
77.5
62
87.0
86.1
85.1
84.1
83.1
82.0
80.8
79.6
78.3
63
86.7
85.8
84.8
83.8
82.7
81.6
80.4
79.2
64
86.5
85.5
84.5
83.5
82.4
81.2
80.0
65
86.2
85.2
84.2
83.2
82.0
80.8
66
86.9
86.0
85.0
83.9
82.8
81.7
67
87.6
86.7
85.7
84.7
83.6
82.5
68
88.2
87.4
86.4
85.5
84.5
83.4
69
88.9
88.1
87.2
86.2
85.3
84.2
70
89.5
88.7
87.9
87.0
86.1
85.0
EXAMPLES
Your Case
1, Age at
retirement
SO
60
2. Age of
female
beneficiary
49
56
3. Option
2 as %
of unmodified
allowance
81.7%
73.7%
4. 2% at Age 50 unmodified allowance
(page 2)
$300.00
$264.60
S. *Option
2 allowance during your lifetime
(Line
3 times
line 4)
$245.10
$195.01
* The same amount will continue after your death for the remaining life of your. beneficiary,
-4-
OPTIONS NO. 3
This option differs from Option 2 in that the allowance continued after your death
to your beneficiary will be one-half the amount of your own monthly allowance.
Because of this smaller obligation to your beneficiary, you will receive a larger
percentage of your unmodified allowance than under Option 2.
TABLE :0
OPTION NO. 3
Percentage of unmodified Allowance Payable to Dale Member With
One --Half (h,) the Amount to Continue to Female Beneficiary
Age of
Female
Beneficiary
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
88.7
88.0
87.3
Age of
Retiring Male Member
50 51
89.0
52
53
54 55 56 57 58 59 60
87.48
85.2
89.3
88.6
87.9
87.7
86.98
85.6
89.6
88.9
87.9
87.2
86.48
85.9
89.9
88.2
87.5
86.7
85.98
86.3
88.5
87.7
87.0
86.2
85.48
88.7
88.0
87.3
86.5
85.7
84.98
89.0
88.3
87.6
86.8
86.1
85.2
89.3
88.6
87.9
87.2
86.4
85.6
89.6
88.9
88.2
87.5
86.7
85.9
89.9
89.2
88.6
87.8
87.1
86.3
90.2
89.6
88.9
88.2
87.4
86.6
90.5
89.9
89.2
88.5
87.8
87.0
90.8
90.2
89.6
88.9
88.1
87.4
91.2
90.5
89.9
89.2
88.5
87.8
91.5
90.9
90.2
89.6
88.9
88.2
91.8
91.2
90.6
89.9
89.3
88.6
92.1
91.5
90.9
90.3
89.6
89.0
92.4
91.9
91.3
90.7
90.0
89.4
92.8
92.2
91.7
91.1
90.4
89.8
93.1
92.6
92.0
91.4
90.8
90.2
60
93.4 92.9 92.4 91.8
91.2
90.6
61
93.2 92.7 92.2
91.6
91.0
62
93.1 92.5
92.0
91.4
63
92.9
92.4
91.8
64
84.1
92.7
92.2
84.48 83.58 82.68 81.68 80.68
84.7
83.9
82.9
82.0
81.0
85.1
84.2
83.3
82.4
81.4
85.5
84.6
83.7
82.8
81.8
85.8
85.0
84.1
83.1
82.2
86.2
85.4
84.5
83.6
82.6
86.6
84.8
84.9
84.0
83.0
87.0
86.2
85.3
84.4
83.5
87.4
86.6
85.7
84.9
83.9
87.8
87.0
86.2
85.3
84.4
88.2
87.4
86.6
85.8
84.9
88.6
87.9
87.1
86.2
85.3
89.1
88.3
87.5
86.7
85.8
89.5
88.8
88.0
87.2
86.3
89.9
89.2
88.5
87.7
86.8
90.3
89.7
88.9
88.2
87.3
90.8
90.1
89.4
88.7
87.9
91.2
90.6
89.9
89.1
88.4
91.6
91.0
90.3
89.6
88.9
65
92.6
92.0
91.4
90.8
90.1
89.4
66
93.0
92.4
91.9
91.3
90.6
89.9
67
93.4
92.9
92.3
91.7
91.1
90.4
68
93.,7
93.3
92.7
92.2
91.6
90.9
69
94.1
93.6
93.1
92.6
92.0
91.4
70
94.5
94.0
93.6
93.0
92.5
91.9
EXAMPLES
I.
.Age at
retirement
s0
60
2.
Age of
female beneficiary
49
56
3.
Option
3 as % of unmodified allowance
89.9%
84.9%
4.
2% at
Age 50 unmodified allowance (page 2)
$300.00
$264.60
S.
Option
3 allowance during your lifetime
(line 3 times line 4)
$269.70
$224.65
Your Case
(One-half of this amount will continue after your death for the remaining life of your
beneficiary.)
DISABILITY RETIREMENT
An employee who has become physically or mentally disabled through illness or
injury to the extent that he is incapable of performing his duties is eligible
for disability retirement. If disability is service -connected, the employee will
be retired on an "industrial disability" basis. Otherwise, the allowance will
be established on the "ordinary disability" basis.
INDUSTRIAL DISABILITY
If the disability is employment -connected, the employee will be eligible for a
life income equal to 50% of final compensation.
ORDINARY DISABILITY (Non -Industrial)
In order to be eligible for retirement on an "ordinary disability" basis an
employee must have at least five (5) years of credited service, regardless of
age. The amount payable would be calculated as follows:
Monthly Benefit as Percentage
Years of Service of Final Compensation
5 to 10 years 1.8% of Final Compensation* X years of service
10 to 18.51 years up to 33-1/3% of Final Compensation*
18.52 years and over 1.8% of Final Compensation* X years of service
* Average salary (without overtime) during the three highest-paid years.
The above amounts refer to the unmodified life allowance. A person retiring for
disability has the right to select an optional form of retirement, as is the case
with service retirement. When a person retiring for disability selects an
optional form of retirement, however, the reduction in his allowance from the
unmodified allowance will be greater than for service retirement. Persons antici-
pating retiring for disability may request a quotation from the Public Employees'
Retirement System as to the amounts payable under the various options.
If the retired member recovers from his disability, the benefit will cease.
DEATH BE'VORE RETIREMENT
BASIC DEATH BENEFIT
This benefit is a refund of the member's accumulated contributions plus six
months' salary provided he has been a member for six years or more. For those
who die before completing six years of membership, the benefit is one month's
-6--
DEATH BEFORE R.ETIP.EMEN
BASIC DEATH BENEFIT, continued
salary for each year of membership plus refund of contributions. The salary
referred to is that earned during the year preceding death. Service prior
to membership does not count toward this benefit.
If death is service -connected in the judgment of the Industrial Accident Commis-
sion, a monthly income is paid to the widow for life (or until remarriage)
instead of the above basic death benefit. However, if she is also eligible for
survivor benefits from Social Security because of the member's death, the Public
Employees' Retirement System benefit will be reduced by the amount of such Social
Secu'ri'ty so long as Social Security benefits are payable (usually until the
youngest child reaches 18 and after the widow reaches age 62). The total, inclu-
ding Social Security, would be 50% of "final compensation". If death was caused
by external violence or physical force, the total benefit (including Social Secur-
ity) would be increased to the following percentages of "final compensation" so
long as the widow lives and does not remarry°
Widow
with
3 or more children under 18 years
75%
Widow
with
2 children under 18 years
70%
Widow
with
I child under 18 years
62'z%
1957 SURVIVOR BENEFIT
Employees with five (5) or more years of service who have reached the minimum age
for service retirement have further death protection under the 1957 Survivors
program. The surviving widow can elect to receive either the basic death benefit
or a monthly income equal to one-half the unmodified retirement allowance the
employee was eligible for on the date of his death if she was married to him at
least one year prior to death. The monthly income lasts until the widow's death
or remarriage with a guarantee that the Public Employees' Retirement System will
pay as much as under the basic death benefit.
1959 SURVIVOR BENEFIT (Optional. to Contracting Agency Without Social Security)
The 1959 Survivor Benefit is paid monthly to the surviving widow (or dependent
widower), and children until they reach 18 years, unless married before that age.
It applies only to those members who have this coverage (as evidenced by a $2.00
monthly payroll deduction). Monthly benefits are;
Elible Survivors Monthly Benefit
An eligible surviving widow (or dependent widower)
until remarriage, with two or more dependent
children; or three eligible children alone.........,. $430.00
Same -- with one eligible child, or two eligible
children alone ....................................... $360.00
Survi.vi,ng widow at age 62 (or dependent widower at
age 65), not remarried; or one eligible child alone.. $180.00
Dependent parents may be eligible for benefits if there are
no other survivors.
DEATH AFTER RETIRFMEN'
Upon death after retirement, the System will pay $500 in a lump sum to the bene-
ficiary designated by the member. If the employee chooses to retire; on the
"unmodified" allowance, this $500 will be the only benefit paid.
ONE-HALF CONTINUANCE
One-half continuance (optional to contracting agencies) provides that upon the
death of a local safety member after retirement for service or disability, one-
half his retirement allowance shall be continued to his surviving wife (provided
she was married to him at least one year prior to his retirement) throughout her
life or until her remarriage. Should there be children under the age 18, but no
surviving wife (or the surviving wife has died or remarried) then one-half his
retirement allowance shall be continued to said children while they are unmarried
and under the age of 18 years. Should there be no surviving wife and no surviving
children oder the age of 18 years, then a surviving parent or parents dependent
upon him for support may collectively receive one-half of his retirement allowance
throughout their lives.
This benefit is essentially the same benefit that is provided retired employees
under service retirement Option 3. The main difference is that under Option 3
the retired member pays the cost of providing this protection to his widow by
accepting a lower retirement allowance during his lifetime, whereas, under the
one-half continuance benefits of Section 21264, the retired member®s widow would
be given this protection at the cost of the employing agency.
How to Retire
An Application for Retirement, PERS-BEN-369, (available from your employer)
should be submitted to the Public Employees' Retirement System, P. 0. Box 1953,
Sacramento, about 90 days in advance of the intended retirement. If quotations
under optional retirement benefits are desired, the name, birth date, and sex
of person intended as beneficiary must be shown on the application. The Retire-
ment System -will advise you of the allowance payable and will furnish such forms
and instructions as may be necessary for your retirement. When all documents
have been properly completed and returned to the Retirement System, your name
will be added to the retirement rolls for issuance of allowance payments at the
end of each month. Retirement cannot be earlier than the first of the month in
which your application is received in this office.
!-low to File Claim for Death Benefit
Notice of the death of the member will come to the Retirement System from the
employer, or may come in a letter from relatives of the deceased member. The
Retirement System will furnish an affidavit for the beneficiary to sign and will
request a certified copy of the death certificate be furnished together with a
newspaper clipping announcing the death. After the above documents are received,
and are accepted as meeting legal requirements, a warrant in payment will be
mailed to the beneficiary.
TERMINATION OF EMPLON P
I£ an em loyee has less than five (5) years of service, contributions must be
refunded to the employee unless he is of retirement compulsory age. When con-
tributions are refunded, Retirement System membership ceases and there is no
further right to death, disability, or, service retirement benefits.
If an employee has five (5) or more years of service, a terminating employee
can leave zs contra ions in the Retirement System, thus retaining his
right to a deferred retirement income (at age 50) based on service and salary
prior to termination.
The Report of Status Change or Separation, Form PERS-ACC-167, filed through
your employer, is used to accomplish the election you make to have your contri-
butions remain on deposit or to be refunded to you.
Interest is paid to the last day of the preceding fiscal year. Contributions
withdrawn as of July 1st will, therefore, receive all accumulated interest.
Those withdrawn as of June 29th would, in effect, lose a year's interest. As
of July 1, 1972, the interest rate credited to employee accounts is 5%.
M'
RESOLUTION NO. 74-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA DECLARING ITS INTENTION TO APPROVE AN
AMENDMENT TO CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIRE-
MENT SYSTEM AND THE CITY COUNCIL OFF THE CITY OF
SANTA ANA
WHEREAS, the Public Employees' Retirement Law permits
the participation of public agencies and their employees
in the Public Employees' Retirement System by the execution
of a contract, and sets forth the procedure by which
said public agencies may elect to subject themselves and
their employees to amendments to said law; and
WHEREAS, one of the steps required in the procedure
to amend this contract is the adoption by the legislative
body of the public agency of a resolution giving notice of
its intention to approve an amendment to said contract,
which resolution shall contain a summary of the changes
proposed in said contract; and
WHEREAS, the following is a summary of the major
provisions of the proposed changes:
1. Provides upon death of a miscellaneous or local
safety member who retired for service or dis-
ability for the continuation of one-half the
retirement allowance to certain survivors.
2. Safety formula changed to 2% at 50 (from 1/2
at 55).
NOW, THEREFORE, BE IT RESOLVED that the City Council
of the City of Santa Ana gives, and it does hereby give,
notice of intention to approve an amendment to contract,
between said City Council and the Board of Administration
of the Public Employees' Retirement System, a copy of said
amendment and a summary of the major provisions of the pro-
posed changes being attached hereto, marked Exhibits "A"
and "B", and by this reference made a part hereof.
ATTEST:
MAYOR
FLOF: yMALONE
CLERK OF THE COUNCIL
RESOLUTION NO. 74-17
PAGE TWO
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.:
CITY OF SANTA ANA )
I, FLORENCE I. MALONE, do hereby certify that I am
the Clerk of the Council of the City of Santa Ana; that
the foregoing Resolution was introduced to said Council
at its regular meeting held on the 4 _day.of February ,
1974, and was at said meeting passed and adopted by the
_following vote, to wit:
AYE Sn, Councilmen: Evans, Yamamoto, Markel, Garthe,
Patterson, Ward, Griset
NOES, Councilmen: None
ABSENT, Councilmen: None
F us 2 F. hAL0N'E
CLERK OF THE COUNCIL
EXHIBIT A
AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
r
AND THE
CITY COUNCIL
OF THE
CITY OF SANTA ANA
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board and the CITY COUNCIL of the CITY OF SANTA ANA, hereinafter
referred to as Public Agency having entered into a contract under date„of November
259 1946, effective July 1, 1947, and as amended effective October 1, 19515
February 1.9 1954, September 11 1956, July 1, 1959, November 19 1960, September 17
1963 April 11 1964, February 15 1965, January 16, 1969, and November 11 1970, and
as provided by Chapters 170 and 3169 Statutes of 1971, which provide for participa-
tion of Public Agency, hereby agree as follows:
A. Paragraphs I through 11 are hereby stricken from said contract as executed
effective July 1, 1947, and are hereby replaced by the following paragraphs
numbered I through 8 inclusive:
1. All words and terms used herein which are defined in the Public Employ-
ees' Retirement Law shall have the meaning as defined therein. unless
otherwise specifically provided. "Norrual retirement age” shall mean
age 60 for miscellaneous members and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1947, making its employees as herein-
after provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on elec-
tion of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except such as by express pro-
vision thereof apply only on the election of contracting agencies.
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 firemen (herein referred to as local safety members);
b. Local. policemen (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
miscellaneous members).
The following employees shall be excluded from membership in said
Retirement System:
NO ADDITIONAL EXCLUSIONS
4. The fraction of final compensation to be provided for each year of
credited prior and current.service as a miscellaneous member shall
be that provided in Section 21.251.13 of said Retirement Law.
Ret. Form 702.-1
5. 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:
r
a. The fraction of final compensation to be provided for each year of
credited prior and 'current service as a local,safety member shall
be that provided in Section 21252.01 of the Retirement Law.
b. Section 21380-7 (providing for allowances for survivors of mem-
bers covered under the program upon death before retirement).
c. Section 21263 (providing upon death of a miscellaneous or local
safety member who retired for service or disability for the con-
tinuation of one-half the retirement allowance to certain survivors).
6. Public Agency shall contribute to said Retirement System as follows:
a. With respect to miscellaneous members, the public agency shall
contribute the following percentages of monthly salaries earned
as miscellaneous members of said System:
(1) 1.53 percent until June 30, 1980 on account of the liability
for prior service benefits.
(2) 9.81 percent on account of the liability for current service
benefits.
(3) 0.69 percent on account of the liability for the 1959 Survivors
program.
b. With respect to local safety members, the public agency shall con-
tribute the following percentages of monthly salaries earned as
local safety members of said System:
(1) 2.158 percent until June 30, 1979 on account of the liability
for prior service benefits.
(2) 21.382 percent on account of the liability for current service
benefits.
(3) 0.089 percent on account of the liability for the 1959 Survivors .
program.
c. A reasonable amount per annum, as fixed by Board to cover the costs
of administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or the period-
ical investigation and valuation required by law.
d. A reasonable amount as fixed by the Board, payable in one install-
ment as the occasions arise, to cover costs of special valuations
on account of employees of Public Agency, and costs of the period-
ical investigation and valuation required by law.
Ret. Form 702-2
7. Contributions required by Public Agency and its employees shall be sub-
ject 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 �)y thelperiodical investigation and
valuation required by said Retirement Law.
8. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within thirty days after the
end of the period to which said contributions .refer. 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, or
adjustments on account of errors in contributions required of any
employee may be made by direct cash payments between the, employee and
Board. Payments by Public Agency to Board may be made in the form of
warrants, bank checks, bank drafts, certified checks, money orders,
or cash.
B. This amendment shall. be attached to said contract and shall be effective
on the day of _--
Witness our hands this
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES1 RETIREMENT SYSTEM
BY
William E. Payne, Executive Officer
day of
CITY COUNCIL
OF THE
CITY OF SANTA ANA
Clerk: ��-
Ret. Form '702-3
March 1, 1974
Public Employees
Retirement System
1416 Ninth Street
P. O. Box 1953
Sacramento, California 95809
Attention: Mr, Kisuk Yang, Chiu Actuary
P. E. R. S. CONTRACTAMENDMENT - SECTION 024
As requested in your letter of January 15, 1974, to D. E. Hott, Director of
Personnel for the City, we have enclosed a certified copy of Resolution No.
74.17, declaring the Council's intention to approve an amendment to the sub-
ject contract, accompanied by the Clerk's certification of the Council action.
The election has been held and the Certification of Employee Election is
enclosed.
Thank you for your assistance in this matter.
Cordially,
FLORENCE 1. MALON ,
CLERK OF THE COUNCIL,
cc: Personnel Director
Enclosures
CERTIFICATION OF EMPLOYEE ELECTION
PERS-ACT-15 (3/72)
February 28, 1974
(Date)
Board of Administration_
Public Employees, Retirement System
1416 - 9th Street
Sacramento, California 95814
I hereby certify:
That the following employees of the CITY OF SANTA ANA have
expressed :;hair approval or disapproval of said Agency's participation in the
Public Employees' Retirement System on the basis described in the Resolution of
Intention passed by said Agency's CITY COUNCIL
on February 4 1974 , in such manner as to permit each employee to
separately and secretly express his choice and that the outcome of such election
was as follows:
a. Local Firemen as defined
in Gov't Code Section 20021
Number of
employees eligible
to vote
221
b. Local Policemen as defined
in Gov't Code Section 20020 212
.. .; ....
A. •
.. g c....-
r� @ u
�... .
i•
•. . �.
mat Amendment
Number of votes
approving said
participation
216
203
City Clerk or Secretary
Number of votes
disapproving said
participation
M
1
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy
of a Resolution adopted by the CITY COUNCIL ,
Governing Body)
of the CITY OF SANTA ANA. '
Name of Public Agency
on February 4, 1974 , appearing at Page 47 ,
(Date)
Volume 31 of the (Minutes) of the
CITY COUNCIL
Governing Body)
CITY CLERK or
Secretary of the Board
PERS-ACT-12 (11/71) .
Tilt CITY 0f H11H 111111
,q CALIFORNIA
I
October 16, 1972
Mr. hisuk Yang, Actuary
Public Employees' Retirement System, Section 23
P. 0. Box 1.953
Sacramento, California 95809
Dear Mr. Yang..
jljoasa address raplias io:
Room 307, City hall
Personnel Department
During recent "meet and confer" sessions the City of Santa Ana reached agreement
with employee groups to amend certain provisions of its Public Employees'. Retirement
System contract. We wish to initiate the amendment procedure well in advance of,
the scheduled effective date so that the target'date can be met without delay.
We want to amend our contract by adding the following provisions:
1. For local safety members add Government Code Section 21252.01 (the so-called
CHP Plan providing for the 2% at age 50 formula).
2. For local safety members add Government Code Section 21264 (providing for
one-half retirement allowance continuance for the widow following death of the
retired member). I
3. For local miscellaneous members add Government Code Section 21264.1 (providing
for one-half retirement allowance continuance for the widow following death of
the retired member).
forimplemento or, f theCe cions is June 1. 1974. Please
Our target date �v, uti.., c_ _ r._evi...:.. _ JL .
initiate the necessary contract amendment procedures.
Very truly yours,
F
D. E. Bott
Director of Personnel
be: City Manager
City Attorney
kClerk of the Council
Santa Ana City Employees' Association
Police Benevolent Association
Firemen's Benevolent Association
VIRV IVILNU J110 'AM