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HomeMy WebLinkAbout1971- ValuationsPUBLIC EMPLOYEES' RETIE—%NT SYSTEM L° V L�� D 1416 - 9th St., (P. 0.'. ,x 1953) L Sacramento, California 95809 .tyG A 1971 ,PERz taCT-6 ( 2/71) ��. ptmrri©Y Gull at Santo Ana CONTRACT OF CITY OF SANTA ANA WITH THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM FOR MAKING A VALUATION AS STATED BEREIN By this AGREEMENT made this F-166 -- = day of , 19„�Z, in accordance with and subject to the provisions of the n-113li Employees' Reti.remant Law, by and between the CITY COUNCIL of the CITY OF SANTA_. ANA hereinafter referred to as Agency, and the Public Employees' Retirement System here- inafter referred to as System' Agency and System agree as follows: A. Agency herewith retains the services of System to perform the valuation required. by Section 204.61.1 of the Public Employees' Retirement Law for the purpose of de- termination by the Board of Administration of the Public Employees' Retirement System of the contributions to be made by Agency under Agency's contract with said Board if the benefits under said contract, described in the attached Exhibit A, are changed as follows: Change item(s) 3.01, 3.03, and 3.04 in Columns (c) and (d)®�gpfrom the description in Exhibit A to the description in the attached Lxanit B. B. Agency will pay $ ” _--_ ___ to System upon oompletion of the valuation, such fee being based on the number of persons and membership categories involved. C. Any and all data and information requmit:ed by System from Agency for use in com- pilation of this valuation shall be furnished to System by Agency upon request by System. The actuarial tables and procedures to be used in the valuation shall be in accordance with the tables approved by said Board of Administration. 'System shad have sole control of the valuation and its judgment in the det5rmination thereof shall be final and conclusive. All. work sheets and final results and reports, the product of the valuation, shall be and remain the property of the System. Witness our hands the day and year first above written. PUBLIC EMPLOYEES1 RETIREMENT SYSTEM f4illiEw E. Payne, cut Officer r *FEE l 50 flat�l $.50 per sac ac active safety member. Amendment CITY OF SANTA ANA e TITLE Mayor James /;2 City Attorney FORM: Contrr.,cwt Status as of NovOm'""" 7., 1970for Status release iainber 2L41 20493 or. 20580 effective Not APPIJ, c abIc',Alpha 38110 Airiendn 10/1/51., 2/1/54, 9/1-/56, 7/1'/59, 11/1./60, 9/1/633 4/1. 64, 2/1/65, 1/16/69 11.A/70 1..0 Coverage. 1.. 0:L `HERS since. . . 1..02 €lASDI since (D Div;, A ---R11) 1.03 retro to. . . . . . . . 1..04 Former Group A re --employ as . 1..05 RefundretroOASDS adj,contr. 2 e 0 Local. System. . . . . . . 2.01 Use aFe for contr. rates. . 2.02 Employee contr. transferred . 2.03 Retired Live, transferred 3.0 Retirement Formula: 3.Ol7fa7' - Forir-EUT ; 3.02 Percent for P/5 . . 3.03 Misc. F/3 improved to. . , 3.04. Minimum Retirement Age. . . . 3',05 -.Minimum Guarantee . . . . 3.06 mod, 1st $ for OASDI from 3.07 until.. 3.08 thereafter 1st $ to 3.09 thereafter ter• lst �;' to 3.10 Ordinary disablliby formula 3.1:1. Disability limit (section). 4 0 Compensaticn Ave acre: 4001- or. 7; !Jene1'rts. _ , 4.02 For C/S Benefi.ts. 4.03 Gr. since (date) 4.04. Include overtime. 5.0 Post-retirement Death Benefits: 5.01 I ump Su;n ,�.._.e 777 ;� 5.02 1/2 continuance (2.12.6)4) 6.0 Pre --retirement Death Benefits: 6.O1�'Loca]�5y.;t,em contr cro7 - 6.02 Local System serv. credit . 6.03 157 Survivor (21365.5) since. 6.04. '59 Survivor (21380M7) since. Entries 7.0 S7ec : a' Service: 7.04-7!7` "7 '";r. C/S (208311,1) ?.05 ?/S wrsgr, other source (20339) Exclusions & remarks SANTA ANA, CITY ^1, Code 0-1.37 M.Lsceiia.neous Local. Safety - -- 7-1-47 �...._7 1 -147 7--1 No '-Y v@ 55,. 1. Pa @55 10011 100 .:xxxx xrN -50 Nis'c,.� 71771, a77- No I 51 2129TI,­­ - - ------ 3 a 3 H�2 154) 3 TI L;5 3H(2.1 No Na � No $500 _ $500 $500 No No 2- 11--l-60 rv1.1-1-60 belora a .,17 to all=uns r.0 Rl1�owa ce 1: -no <-as,s;==- -].-64 8.01-r6. memi er Sormu].a (21251.35) 8.02 $100 min. guar, (21'258.2) . )- 8.03 '55 to pre -,I yr, ave. (21.251:4) 8.04 '57 to prep7,/2/56 ret. (21.251.5). 2--1- 8.05 For 20834.1 service (20834,2). P7o _ 8'.06 For 20839 service (20840). . T7o _- 8.07 163 to pre -l-1-62 ret (21251..6). 777r M3 163 to pre -•T_-1..67 ret (21251..75). 11-].-'r > KHIBIT A '30 Ret. Form 556-s (Rev. .1/691 yo;i° ra t Status, as o: .. _ for _SANTA ANA., CITY Amended 1.0 Covera_2_e: 1.01 ''efts since. . . . . 1.02 CASDI since (D=Div:, A=ill) . 1.03 retro to. . . . . . . . 1.04 Former Group A re-employ as . 1,05 Refund retro CASDI adj.ccntr, 2.0 vocal. Svs em. . . . . . , . . 2.01 7'se age 'cr conte . rates. . 2.02 Employee cont.:. transferred 2.03 Retired lives transferred , 3.0 Retirement Fb 'laa 3.02 Percent for ~'/^ . . . . . 3 3 ^cefit improved to. . . . . 3,04 'Hinimtrr: Rotirement Age. . . . IT" Minimu,. Guarantee . . . . . . 3.C6 Mon l t ip far CASDT, from 3M until ._r�.__,.... . . . . . 3.03 thare._after 1st to. 309 thereafter l.st to, 3.10 Ordinary 3,11 D0011ity limit twotion). 4,017 -TA -178 _anc2_.,,.. . . . . . . 4,02 For C/�S Benefits , 4.03 Gr. stnoo Wok Include overtime . . . . . . 5(.02 1/2 continuance ( 212641 6 . .0 Pre -ret• nt 2a v i ts: 6,O�•.._.hocaj._,..;��.�.L'eC1VC 6.02 Lica) 'System s_.r.,,, credit , 6.03 '57 Saxvi.vor (21365.5) sinco. AM '59 Survivor (21.380-7) 'since. 7.0 9onc i vi c: 'y.05 =/5 n other source (2)339) Exclusions A lemarks 20493 or 20580 efcecuive c;a sc Y" Fire. Code_ w Alpha 0.0 ; llo*-iance Inc re_.ses: Ei. �ii�0 I:ei^l1eT 70i"C�.11.L8 i2.i.0 J1..�5j `}.C2 $1.00 mi.n. guar. (21.208.2' T O '55 to Pre -3 Y"! ave. 1 (;21251..1 ) 8.04 '57 to prn_I/2/56 rel,(212J1,7)• 8.05 For 20634.1. service (20834.2). 3,06 For 20839 se^vice. (20840). 0.0;i 163 to pre -1-1-62 ret. (21.231.6), M3 163 Q pre -L-1.67 rat C2171.75) EXEIBIT B "W0 Nnt. 0111 551-Y Qcq. 116y) , .7 I tq, {r� 01 JE OF CALIFORNIA—BOARD OF ADMINISTRATION RONALD REAGAN, Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM v 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 Please Direct Your Reply to Section �3 Refer to Member Account August 20, 1971 Florence 1. Malone Clerk of the Council City of Santa Ana 217 North Main Street Santa Ana, California 92701 The contract for a valuation to determine the approximate cost for your participating in the Public 33mployees' Retire- ment System has now been executed by all parties concerned. We are returning a copy of the executed contract for your files. A/. 1' A KD YAI1G �! ACTUARY Enclosure AUG 2319h PERS-ACT®3 CITY or SANTA ANA STATE OF CALIFORNIA - RONALD REAGAN, Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953® ' SACRAMENTO, CALIFORNIA 95809 STANLEY B. FOWLER, President OTTO PALOMBO, Vice Presidenf W. JAMES DAWSON, D.D.S. BARTLETT T. GRIMES ROBERT R. HEADLEY A. W. "JOE" HISLOP WILLIAM G. MAAS VERNE ORR JAMES A. TAYLOR NEVILLE W. TURNER, M.D. JOSEPH L. WYATT, 1R. Florence I. Malone Clerk of the Council City of Santa Ana, 217 North Main Street Santa Ana., California 92701 Dear Miss Malone: September 16, 1971 Reply to Section 23 In accordance with your request, we are transmitting with this letter the report on our actuarial valuation to determine the cost of participating with the Public kGmployeesl Retirement System on the following basis: 1. Report A: Providing 2' at 50 benefits (instead of 1/2 at 55) for safety members. Please let us know if you wish to proceed with an amendment adding the above change to your contract. If so, wi,Z'1 you please comJlete and return one copy of the enclosed Form 121(a) listing the change desired in Part "AI' and the anticipated dates on which your agency will take the necessary action in Part "S". When you complete the antici- pated schedule of agency actions under Part B of Form 121(a), please allow at least two weeks from the date your .Dorm 121(a) reaches the Retirement System to the date set for your governing body's first step, the adoption of their Resolution of Inten- tion. That resolution must meet certain specific requirements under the Retirement Law and must also carry with it as an attachment a copy of the proposed amendment. Therefore, it is necessary that this document be drawn by the Retirement System office. After an executed copy of the Resolution of Intention is received here, we will forward the ordinance and other final documents to be executed by your govern- ing body. You will be billed in the near future in the amount of $256.00. MC:er encls. Q' f Y s'J l / Yours truly, Kisuk Yang Actuary p19'tl OR 'u/ulrT/A /ANR Public Employees' Retirement System Actuarial Report A Agency CITY OF SANTA ANA „�- 0137 Name Employer Number 1971 � FACTORS _ Combined Fire and. Police A. Valuation specifications: 1. Valuation "as of” date 6/30/70 2. Formula Present Formula Proposed Formula ___._.__..�_ Aj 1/2 @ 55 2% @ 50 3. Minimum Monthly Service Retirement Benefit 1100 $100 4. 1957 Survivors Yes Yes 5. 1959 Survivors Yes Yes 6. One-half continuance No No B. Agency contribution 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 nrior service (as % of member payroll) mases until 6/30/77 D. Total Agency Contributions: a.. Total. Agency Contribution Rate b, Annual. Member Payroll c. Annual contributions based on member payroll. September 16, 1971 9.667% 0.095 0.02®_ _ .. 17.154.% 0.083 0.022_ _ 7.29%.aa.._._..._._ 1.145% 1.603% 10.934% 60 110, 852 X449,481 18.862% $4,073,616 $768,365 KI"UK 'YANG l✓ U A 7TU F Y Board of Administration Public Employeest'Retirement System Sacramento, California The CITY OF SANTA ANA hereby requests the documents necessary (Name of Agency to amend its contract with the Public Employees' Retirement System as shown in "A" below. A. Amendments desired: Section of Retirement Law Description of Benefit Providing 2% at age 50 formula (instead of 1/2 at age 55) for local safety members. B. Anticipated schedule of agency actions 1. Adoption of Resolution of Intention to amend contract with the Public Employees' Retirement System. 2, Employee election. 3. First reading of ordinance to adopt amendment to PERS contract. 4, Final reading of ordinance. (Must be at least 21 days after Resolution of Intention.) 5, Effective date of ordinance. 6. Date Effective date of PERS amendment. (Must be the first day of a payroll period subsequent to the effective date of the ordinance.) NA TITLE Ret. Form 121(a) (ordinance) 5/69 Board of Administration Public Employees' Retirement System Sacramento, California The CITY Or SANTA ANA hereby requests the documents necessary Name of Agency to amend its contract with the Public Employees' Retirement System as shown in "All below. A. Amendments desired Section of Retirement Law Description of Benefit Providing 2% at ape 50 formula (instead of 1/2 at age 55) for local safety members. B. Anticipated schedule of agency actions 1, Adoption of Resolution of Intention to amend contract with the Public Employees' Retirement System. 2. Employee election. 3. First reading of ordinance to adopt amendment to PERS contract. It. Final reading of ordinance. (Must be at least 21. days after Resolution of Intention.) 5. Effective date of ordinance. 6. Effective date of PERS amendment. (Must be the first day of a payroll period subsequent to the effective date of the ordinance.) BY TITLE Date Ret. Form 121(a) (ordinance) 5/69 PUBLIC EMPLOYEES' RETIREMENT SYSTEM (2°% at age 50) 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 employ- ment. 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) pro- vides 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. Total service retirement benefit is subject to a limitation of 75% of final compensation. 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. The adjustment may not exceed an amount equal to the base allowance increased by A,% compounded from the base year. Increases will not be provided until the fourth year following the year of retirement. NIdBER CONTRIBUTIONS Each local safety member, whether a new member or a member with years of membership, will start contributing at the uniform rate of 9% of salary earned, exclusive of overtime, on the date this formula becomes effective. No adjustment of previous member contributions is required. SERVICE RETIREMENT 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 retirement a member must have either contributions exceeding $500 or 20 years of service. Retirement at age 60 is compulsory regardless of length of service or amount of contributions. SERVICE RETIREMENT BENEFITS The monthly income is determined by a e at retirement years of credited service, and "final compensation". The latter term means the average monthly salary kjaEc overtime during th6 36 consecutive highest paid months. Ret. Form 1589-1 (1/69) 500 Unmodified Allowance The term "unmodified allowance" refers to the 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 sum 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 OPTIONAL ALLOWANCES When you retire, you are given the opportunity to choose between the "unmodified" allowance and 'the options described below. Each option will pay a smaller life income than the "unmodified" benefit but will provide certain death benefits in addition to the $500: Option No. 1 guarantees the full return of your contributions regardless of how Tong you live. At death the Retirement System adds up that portion of the monthly benefit payments which were provided by your contributions (excluding benefits paid from employer contributions). If the full amount of your contributions has not been paid, the balance will be paid to your beneficiary. Option No. 2 permits you to provide a life income for yourself, and after death to have that same income continue throughout the lifetime of your beneficiary. Ret. Form 1589-2 (1/69) 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 2.14o 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. 3- Years of credited service Final ion ofactor t(from 25 00.00 25 30 8 00 14 00-00 4. Benefit Table A) 26000% 270 420% 2-00 700% 2?0 700/x 5. Benefit percentage (2)x(4) 50% 60.5% 75% 37.810 6. Unmodified Allowance $300.00 $423.50 $600.00 $264.60 $ OPTIONAL ALLOWANCES When you retire, you are given the opportunity to choose between the "unmodified" allowance and 'the options described below. Each option will pay a smaller life income than the "unmodified" benefit but will provide certain death benefits in addition to the $500: Option No. 1 guarantees the full return of your contributions regardless of how Tong you live. At death the Retirement System adds up that portion of the monthly benefit payments which were provided by your contributions (excluding benefits paid from employer contributions). If the full amount of your contributions has not been paid, the balance will be paid to your beneficiary. Option No. 2 permits you to provide a life income for yourself, and after death to have that same income continue throughout the lifetime of your beneficiary. Ret. Form 1589-2 (1/69) Rj12n No. 3 differs from Option No. 2 in that the allowance paid 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 No. 2. The following tables and examples illustrate the calculation of the optional allowances: TABLE B OPTION NO. 1 - SERVICE RETIREMENT Reduction of Unmodified Allowance For Each $1,000 of a Male Employee's Accumulated Contributions Age at Retirement Factor. 50 .38 51 .42 52 .45 53 .48 54 .52 55 .55 56 .59 57 .63 58 .68 73 6o •78 Examples Your Case 1. Age at Retirement 53 $423.50 60 $264.60 2. 3. Unmodified Allowance Est. Contributions at Retirement $20,000 $12,000 4. Option 1. Reduction factor .48 .78 5. 6. Reduction Option 1 monthly allowance $9i3°g0 $255624 Ret. Form 1589-3 (169) TABLE C OPTION N0. 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 5 57 4o 76.4% Examples Your Case 1. Age at retirement 50 60 41 76.9 75.7% 49 56 3. option 2 as % of unmodified allowance 81.4% 73.8% o 42 77.4 76.2 74.9% (from page'^t) $300.00 $264.60 $ 5.* 43 77.9 76.7 75.5 74.2% (line 3 times line 4) $244.20 $195.27 $ 44 78.5 77.3 76.1 74.8 73.5% Ret. Form 1589-4 (1/69) 45 79.1 77.9 76.6 75.4 74.1 72.8% 46 79.6 78.4 77.2 76.0 74.7 73.4 72.0% 47 80.2 79.0 77.8 76.6 75.3 74.0 72.7 71.3% 48 80.8 79.7 78.5 77.2 76.0 74.7 73.3 72.0 70.6% 49 (8%.4 80.3 79.1 77.9 '76.6 75.3 74.0 72.6 71.2 69.8% 50 82.0 80.9 79•7 78.5 77.3 76.0 74.7 73.4 72.0 70.5 69.0% 51 82.7 81.5 80.4 79.2 78.0 76.7 75.4 74.1 72.7 71.2 69.8 52 83.3 82.2 81.1 79.9 78.7 77.4 76.1 74.8 73.4 72.0 70.5 53 83.9 82.8 81.7 80.6 79.4 78.2 76.9 75.6 74.2 72.8 71.3 54 84.5 83.5 82.4 81.3 80.1 78.9 77.6 76.3 75.0 73.6 72.1 55 85.2 84.2 83.1 82.0 80.9 79.7 78.4 77.1 75.8 74.4 73.0 56 85.8 84.8 83.8 82.7 81.6 80.4 79.2 77.9 76.6 75.2 (7 57 86.4 85.5 84.5 83.4 82.3 81.2 80.0 78.7 77.4 76.1 74:7 58 87.1 86.1 85.2 84.1 83.1 82.0 80.8 79.6 78.3 77.0 75.6 59 87.7 86.8 85.9 84.9 83.8 82.7 81.6 80.4 79.2 77.8 76.5 6o 88.3 87.4 86.5 85.6 84.6 83.5 82.4 81.2 80.0 78.7 77.4 61 88.1 87.2 86.3 85.3 84.3 83.2 82.1 80.9 79.6 78.3 62 87.9 87.o 86.1 85.1 84.o 82.9 81.8 80.6 79.3 63 87.7 86.8 85.8 84.8 83.8 82.7 81.5 80.2 64 87.5 86.6 85.6 84.6 83.5 82.14 81.2 65 87.4 86.4 85.5 84.4 83.3 82.1 66 87.2 86.3 85.3 84.2 83.1 67 87.1 86.2 85.1 84.o 68 87.o 86.o 85.0 69 86.9 85.9 70 86.9 Examples Your Case 1. Age at retirement 50 60 2. Age of female beneficiary 49 56 3. option 2 as % of unmodified allowance 81.4% 73.8% o 4. 2% at Age 50 unmodified allowance (from page'^t) $300.00 $264.60 $ 5.* Option 2 allowance during your lifetime (line 3 times line 4) $244.20 $195.27 $ *(The same amount will continue after your death for the remaining life of your beneficiary.) Ret. Form 1589-4 (1/69) TABLE D OPEN N0. 3 Percentage of Unmodified Allowance Payable to Male Member With One -Half (?) the Amount to Continue to Female Beneficiary Age of Female Beneficiary Age of Retiring Male Member 50 51 52 53"x- 55 56 57 58 59 60 40 86.6% 41 86.9 86.1° 42 87.3 86.5 85.7% 43 87.6 86.8 86.0 85.2/° 44 87.9 87.2 86.4 85.6 84.7% 45 88.3 87.5 86.8 86.0 85.1 84.2% 46 88.7 87.9 87.2 86.4 85.5 84.7 83.8% 47 89.0 88.3 87.5 86.7 85.9 85.1 84.2 83.3% 48 89,,�-4\ 88.7 87.9 87.2 86.3 85.5 84.6 83.7 82.7% 49 1189.8 89.1 88.3 87.6 66.8 85.9 85.1 84.2 83.2 82.2% 50 90.1 89.4 88.7 88.0 87.2 86.4 85.5 84.6 83.7 82.7 81.7% 51 90.5 89.8 89.1 88.4 87.6 86.8 86.0 85.1 84.2 83.2 82.2 52 90.9 90.2 89.5 88.8 88.1 87.3 86.5 85.6 84.7 83.7 82.7 53 91.3 90.6 90.0 89.3 88.5 87.7 86.9 86.1 85.2 84.2 83.3 54 91.6 91.o go.4 89.7 89.0 88.2 87.4 86.6 85.7 84.8 83.8 55 92.0 91.4 go.8 90.1 89.4 88.7 87.9 87.1 87.6 86.2 86.8 85.3 85.9 84.4 '84.9) 56 92.4 91.8 91.2 90.5 89.9 89.1 88.4 57 92.7 92.2 91.6 91.0 90.3 89.6 88.9 88.1 87.3 86.4 85.5 58 93.1 92.6 92.0 91.4 go.8 90.1 89.4 88.6 87.8 87.0 86.1 59 93.4 92.9 92.4 91.8 91.2 go.6 89.9 89.1 88.4 87.5 86.7 60 93.8 93.3 92.8 92.2 gi.6 gl.o go.4 89.7 88.9 88.1 87.3 61 93.7 93.2 92.6 92.1 91.5 90.8 90.2 89.4 88.7 87.8 62 93.6 93.0 92.5 91.9 91.3 90.7 90.0 89.2 88.4 63 93.4 92.9 92.4 91.8 91.2 90.5 89.8 89.6 64 93.3 92.8 92.3 91.7 91.0 90.3 89.6 65 93.3 92.7 92.2 91.6 90,9 90.2 66 93.2 92.6 92.1 91.4 go.8 67 93.1 92.6 92.0 91.3 68 93.1 92.5 91.9 69 93.0 92.4 70 93.0 Examples Your Case 1. Age at retirement 50 49 60 56 % 2. Age of female 3. Option 3 as beneficiary % of unmodified allowance 89,8 84.9% -- 4. 2% at Age 50 unmodified allowance (from 2) $300.00 $264.60 $ page 5. Option 3 allowance during your lifetime (line 3 times line 4) $269.40 $224.65 $ (One-half of this amount will continue after your death for the remaining life of your beneficiary.) Ret. Form 1549-5 (169) 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 in the judgment of the Industrial Accident Commission, he will. be retired on an "industrial disability" basis. Other- wise, his allowance will be established on the "ordinary disability" basis. Industrial Disability. If your disability is employment -connected, you will be eligible for a life income equal. to 50% of.your highest three -•year average salary. Ordinary Disability. In order to be eligible for retirement on an "ordinary dis- ability" basis an employee must have contributions exceeding $500 or 10 years of service. If miscellaneous members (employees other than local policemen, firemen and county peace officers) are included in the public agency's contract, the monthly life income payable to safety members for ordinary disability retirement is the same as for the miscellaneous members. In such instances, reference should be .made to the material describing miscellaneous member benefits in order to determine the amount of the ordinary disability life income. If there are no miscellaneous members covered, the amount payable would be calculated as follows: Monthly Benefit as Percentage Years of Service of Final Compensation Less than 10 years 1.5% of Final Compensation- X years of service 10 to 20 years 33-1/3% of Final Compensation* 20 years and over 1.5% of Final Compensation* X years of service *Average salary (without overtime) during the 3 highest-paid years. The above amounts .refer to the unmodified life allowance. A person retiring for dis- ability 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 anticipating retiring for dis- ability may request a quotation from PFRS as to the amounts payable under the various options. If the retired member recovers from his disability, the benefit will cease. 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 (including interest). The salary referred to is that earned during the year preceding death. Prior service does not count toward this benefit. Ret. Form 1589-6 (1/69) 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, or 1957 Survivor Benefit. The total would be 50% of "final compensation". If death was caused by external violence or physical force, the total benefit 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 75% Widow with 2 children under 18 701 Widow with 1 child under 18 62;% 1957 Survivor Benefit optional to contracting agencies) 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 (optional to contracting agency) The 1959 Survivor Benefit is paid monthly to the surviving widow (or dependent widower), and children until they reach age 18, 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: Eligible Survivors Monthly Benefit An eligible surviving widow (or dependent widower) until remarriages with two or more dependent children; or three eligible children alone... ......... I ............ $250 Same --with one eligible child; or two eligible children alone.,- ..................................... 180 Surviving widow at age 62 (or dependent widower at age 65), not remarried; or one eligible child ................. 90 Dependent parents may be eligible for benefits if there are no other survivors. DEATH AFTER RETIREMENT Upon death after retirement the System will pay $500 in a lump sum to the beneficiary designated by the member. If you choose 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 industrial 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 retirement) throughout her life or until her remarriage. Should there be children under the age of 18 but no surviving wife (or the surviving wife has died or remarried) then one-half his retirement Ret. Form 1589-7 (1/69) allowance shall be continued to said children while they are unmarried and under the age of 18. Should there be no surviving wife and no surviving children under the age of 18, 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. TERMINATION OF EMPLOYMENT If employee contributions are $500 or less contributions must be refunded to employee unless he is credited with 20 or more years of service. When contributions are refunded, Retirement System membership ceases and there is no further right to death, disability, or service retirement benefits. If employee contributions are more than $500 a -terminating employee can leave his contributions in the Retirement System, •thus retaining his right to a deferred retire- ment income (at age 50 or later) based on service and salary prior to termination. GENERAL INFORMATION Eligibility for Membership All employees who are employed full time become members on the effective date of the public agency's contract with the Retirement System. All persons employed on a full- time basis thereafter become members upon entry into employment. Membership of eligible employees is compulsory regardless of age. Employees who are 60 or older on contract date will come into membership for one month and will then be compulsorily retired. How to Retire An Application for Retirement (Ret. Form 369 is available from your employer) should be submitted to the Retirement System 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 appli- cation. The 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. Retirements cannot be effective earlier than the first of the month in which your application is received by the System. How 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 Retire- ment System will furnish an affidavit for the beneficiary to sign and will request Ret. Form 1589-8 (1/69) that 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. How to Obtain Refund of Contributions The employee should complete Form 167 (secured from employer) on which he will be giving mailing instructions. Form 167 should then be returned to the agency's pay- roll officer who is to complete and return the form to the Retirement System. The refund should be available about four weeks following the System's receipt of the properly completed Form 167. Ret. Form 1589-9 (1/69) August 6, 1971 �t,- Kisuk Yang Actuary 1416 9VAi, Street Sacramento, California 95809 Clerk of the Council 217 Nor0s lvfadn Street Cajifornia 921701 VALUATION- -SECTION 20461.1 EN(,,PL0YrES, RETIREMMT LAW We are e�nob-.)sing iour (4) copies of the puojoct contract which have been .%P",?ro"red by tile Couricil R-nd have beeri executed by the Mayor cm behalf of tkie City. Pleaso return or4e fully exocuted copy to this office as Moon av coilveniciit. Thank you for your ausist;imce in thin inatter. Florence 1, Malone Clerk of the Council rhelof'sures