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Home My WebLink AboutRES 89-88RESOLUTION NO 89 - 88 RESOLUTION OF INTENTION TO APPROVE A CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF DIAMOND BAR WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies in the Public Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and WHEREAS, one of the steps required in the procedure is the adoption by the Governing Body of the Public Agency of a resolution giving notice of intention to approve a contract for such participation between said Governing body and the Retirement System Board of Administration, which resolution shall contain a summary of the major provisions of the proposed retirement plan; and WHEREAS, attached is a summary of the major provisions of the proposed plan: NOW, THEREFORE, BE IT RESOLVED, that the Governing Body of the above agency gives, and it does hereby give notice of intention to approve a contract between said Governing Body and the Board of Administration of the Public Employees' Retirement System, providing for participation of said agency in said Retirement System, a copy of said contract and a copy of the summary of the major provisions of the proposed plan being attached hereto, as an "Exhibit", and by this reference made a part hereof. 1 PASSED AND APPROVED on the 19th day of September , 1989. I, LYNDA BURGESS, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Diamond Bar held on the 19th day of September , 1989, and was finally passed at a regular meeting of the City Council of the City of Diamond Bar held on the 19th day of September , 1989, by the following vote: AYES: COUNCILMEN - Forbing, Miller, Werner, Mayor Pro Tem Horcher and Mayor Papen NOES: COUNCILMEN - None ABSENT: COUNCILMEN - None ABSTAINED: COUNCILMEN - None ATTEST:: Ci Clerk of theu City of Diamond Bar 2 .. EPERS Contract Services Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) SERVICE RETIREMENT Reply to Section 220 Public Agency Contract Services Contract Services Division SUMMARY OF MAJOR PROVISIONS 2% @ 60 (1/50) Formula (Section 21251.13) Local Miscellaneous Members Members credited with at least five years service may retire upon attaining age 50. There is no compulsory retirement age. The monthly retirement allowance is determined by age at retirement, years of service credit, and final compensation. The basic benefit is 28 of final compensation for each year of credited service upon retirement at age 60. If retirement is earlier than age 60, the percentage of final compensation for each quarter year is decreased. If retirement is deferred beyond age 60, the percentage of final compensation for each quarter year of age increases to age 63. Final compensation is the average monthly salary (full-time rate excluding overtime) during: 1) the final 36 consecutive months preceeding separation from employment, unless the member designates another 36 consecutive month period; or, 2) if provided by the employer's contract, during the 12 consecutive months preceeding retirement or separation, unless the member requests another 12 consecutive month period. DISABILITY RETIREMENT Members permanently incapacitated from performing their duties are eligible for disability retirement if they have at least five years service credit. The monthly retirement allowance is 1.8% of final compensation for each year of service. Employees who have between 10.000 and 18.519 years service credit may receive up to one-third of their final compensation. If provided by the employer's contract, the benefit would be a minimum of 308 of final compensation for five years of service credit and It of final compensation for each additional year of service to a maximum benefit of 508 of final compensation. The disability retirement allowance cannot exceed the allowance payable upon retirement for service at age 60, if employment could be continued to that age. If the member is eligible for service retirement, the service allowance is payable if greater than the disability allowance. INDUSTRIAL DISABILITY RETIREMENT If provided by the employer's contract, members permanently incapacitated from performing their duties as a result of a job-related injury or illness receive 50% of their final compensation (or more by additional contract provisions). Employees who enter miscellaneous membership after January 1, 1980, are limited to the amount they would have received for service retirement, had they con- tinued to work until age 63. If the member is eligible for service retirement, the service allowance is payable if greater than the industrial disability allowance. FCSD-CON-44 C10027 (Rev. 7/89) DEATH BENEFITS Death Before Retirement Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up to six month's average salary (the sum of one month's average salary rate for each year of current service to a maximum of six months). 1957 Survivor Benefit: The statutory beneficiary may elect to receive either the Basic Death Benefit or the 1957 Survivor Benefit. The 1957 Survivor Benefit provides a monthly allowance equal to one half of the unmodified allowance the member would have been entitled to had he/she been retired. The 1957 Survivor Benefit is payable to the surviving spouse or to eligible children until age eighteen or marriage. 1959 Survivor Benefits: (Not available to agencies under a modified formula). A surviving spouse or eligible children may receive a monthly allowance as determined by the payment schedule. This benefit may be payable in addition to the Basic Death Benefit or 1957 Survivor Benefit. This monthly allowance is payable to eligible children to age 22 or marriage. Death After Retirement The lump sum death benefit is $500 (or $600 if provided by contract). This amount will be in addition to any payments which might be made under an optional retirement benefit chosen by the member at time of retirement. TERMINATION OF EMPLOYMENT Members with five or more years of service credit may elect to leave their contributions on deposit with the System or to request a refund. Those who leave their contributions on deposit may apply for, and receive a monthly retirement allowance upon or after attaining the minimum retirement age. Those who request a refund of their contributions, terminate their membership and are not entitled to any future benefits. EMPLOYEE CONTRIBUTIONS Miscellaneous members contribute 7% of the gross monthly earnings, however those covered by Social Security under a Modified formula do not contribute on the first $133.33 earned. The employer also contributes toward the cost of the benefits. The amount contributed by the employer for current service retirement benefits generally exceeds the cost to the employee. In addition, the employer bears the entire cost of prior service benefits (service prior to contract date). All employer contribution rates are subject to adjustment by the Board of Administration. FCSD-CON-44 C10027 (Rev. 7/89) Public Employees' Retirement System Public Agency Contract Services Contract Services Division - Section 220 Post Office Box 942709 Sacramento, CA 94229-2709 Telephone (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a r— Resolution adopted by the Cit Council (Governing Body) of the City of Diamond Bar • (Name of Public Agency) on September 19, 1989 (Date) +CXTY-; W �or Secretary f tho Hoard FCSD-CON-12 C0600 (Rev. 11/88)