HomeMy WebLinkAbout1973-02-23; City Council; 1060; Public Employees' Retirement Contract AmendmentAOak
W ' •T H E C I T O F C A R L S B A a, C-A L -T F' 0 R R S A
Agenda Bill No./-_W/-O Date: 2/23/73
Referred To:
Subject: Submitted By:
PUBLIC EMPLOYEES' RETIREMENT THELMA SOWELL
CONTRACT AMENDMENT FINANCE DIRECTOR
Statement of the Matter
SENATE BILL 135, CHAPTER 1413, STATUTES OF 1972, PROVIDES THAT MONTHLY
ALLOWANCES PAID WITH RESPECT TO PERSONS RETIRED OR MEMBERS DECEASED
ON OR BEFORE 12/31/70 ARE INCREASED 5%.
Exhibit
1. LETTER FROM PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
2. RESOLUTION OF INTENTION TO APPROVE AMENDMENT.
3. EXHIBIT A - ACTUARIAL VALUATION.
Staff Recommendations
TOTAL COST WOULD BE $10,639.
COSTS MAY BE. FUNDED BY LUMP SUM PAYMENT OR INCREASING CITY RETIREMENT
RATE AS FOLLOWS:
MISC. MEMBER SAFETY MEMBER
3 YEARS .10% .59%
5 YEARS .06% .36%
10 YEARS .03% .18%
PRESENT RATE FOR MISCELLANEOUS MEMBERS - 7.43%
PRESENT RATE FOR SAFETY MEMBERS - 11.764%
FINANCE DIRECTOR RECOMMENDS PRO-RATA INCREASE OVER 10 YEAR PERIOD AS
method of payment if the city council wishes to authorize the increase.
AB No.
Date: Feb. 27, 1973
City Manager's Recommendation
Exercising this option is at the discretion of the City Council.
Inflation has reduced the income of our members retired prior to
December 31, 1970. However, the costs are quite high inasmuch as only
three members and one survivor are covered. Minimum cost to the City
over a ten-year period would be $15,430. To increase these four retire-
ment payments 5% our miscellaneous retirement rate contribution would
be increased .03% and public safety .18%. This would apply to total
City payroll which increases each year. I could not recommend the
amendment to our P.E.R.S. Contract due to what I consider the excessive
costs. However, as heretofore stated, this is a policy decision.
r
}
4 ,
i
}
1
Council Action
t
3-6-73 The Council acknowledged information and ordered it filed with
out action. }
i
-2-
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
P. 0. Box 1953 (1416. 9th Skreet)
TO:
ALL AGENCIES CONTRACTING WITH THE
PUBLIC FMLOYEES RETIREbjZ?tT SYSTEM
SENATE BILL 135, CHAPTc,R 1413 (1972) 5% ALLOWANCE INCREASE
LETTER
NUMBER: 020-1
VS
Sencte Bill 135, Chapter 1413, Statutes of 1972, provides that monthly allowances
paid with respect to persona retired or mcmbers deceased on or before December 31,
1970 are increased by 5% for State and school members with respect to whom allow-
ances ar- beinl paid on April 1, 1973 and to local members with respect to wham
allowances arc being paid on the effective date of the contract amendment electing
to be ntfoject to the provision. The increase is applicable to both miscellaneous
and safety members and can app7,y only to payments on or after the effective date
Of the contract am,,&=nt.
We are enelooing, it d"Plicate, a Resolution of Intention to approve an amendment
to contract to,previde t't^, 5;, increase. Attached to the Resolution of Intention as
"Exhibit A" is a copy of the valuation results. Your governing body should indicate
the funding period desired and return one complete executed set to this System if
the enclosed Pesob,lion is adapted.
Upon receipt of th. executed Resolution of Intention and attached exhibit, this
System gill forward a resolution authorizing the proposed contract amendment and
other documents pertinent to the amendment. Cities and counties must adopt by
ordinances which do not becoye effective until 30 days following the final reading.
Emergency ordinances are not acceptable for contract amendment purposes.
Effecti'lre date of the amendment must be the beginning of a payroll .period subsequent
to the above actions and whenever possible should coincide with the commencement of
the allowance increas49.
Attachment
xzsux YANa
CHIEF ACTU
�\ IMIt1Ai3 DA:[
r {
- - - — �/ � � f ...-• Arrllov�o rt 1 1 i
,....... �......,. , <... a a...., `>I ..,., —
ml 14•
NO
xIA
°
rgTo3
310�7{4
.f
LLI-
e
101
1
01 a ,o:sJ
1
13
j0 oa�^S
�!`f3j__
15
17-
�'j
•� r
.iG�S.t�
• �j��
.G
L
r f
�3«
1 :,
CAL:-v
r
1
2C
20
; i-----�.-
(_
�. R"� f. '
-.�-i.�
21
2-1
22
22
23
i -t
22
24
24
21
11
2
26
27
2 ,
20
29
i r -
21
31
32
3:
34
3
35
_
_.
3!
30
1
3
37
3'
38
3a
.
37
31