The URL can be used to link to this page

Home My WebLink About1978-12-19; City Council; 5692; Intention to Withdraw from Social Security Programjq CITY OF CARLSBAD AGENDA BILL NO. _:r& U Initial: DATE: December 19,1978 Dept.Hd. C. Atty. DEPARTMENT: PERSONNEL C. Mgr. 4— Subject: RESOLUTION_ OF INTENTION TO WITHDRAW FROM THE SOCIAL SECURITY Statement of the' Matter Attached is a Resolution of Intention requesting termination of the City's Social Security Agreement. The resolution format and content is prescribed by the Public Employees' Retirement System, the City's Social Security Administrative agency. If the +City Council adopts this resolution the City could terminate its Social Security Agreement two years from now, December 31, 1980. The importance of the resolution is that it starts the tiiUng of the two year withdrawl period. If the City Council fails to adopt this resolution the City would, have to wait another year -to start the two year withdrawl period. The earliest date the -City could terminate its Social Security Agreement would be December 31, 1981. During the two year period the City can at any time stop action to -terminate the agreement. Staff recommends this resolution be adopted. This does not constitute a recommendation to terinindte, the agreement only a •recommendation to start the procedure: 4 Subsequent investigations and evaluations as to the desirability. of terminating the agreement will result in additional staff recommendations. An integral part.. of `future investigations and evaluations will involve consideratGan of the desires of,City employees presently covered by the agreement. Attachment Exhibit A, Resolution No. �S-G3le Exhibit B, Procedure for Voluntary Withdrawl from Social Security Prograd. Council Action: 12-19-78 Council adopted Resolution 5636, requesting termination of the Social Security Agreement between the City of Carlsbad and the State of California. ' STATE OF CALIFORNIA SOCIAL SECURITY PROMWI FOR CALIFORNIA PUBLIC AGENCIES PROCEDURES FOR VOLUNTARY WITHDRAWAL FROM SOCIAL SECURITY PROGRA14 Agencies must be under Social Security coverage five years to be eligible to request termination. 1. Governing body must adopt a resolution; the resolution (Form SSD 64) shallinclude: a. The request of the agency to terminate Social Security coverage b. The effective date of termination desired which must be (1) Last day of a calendar year, two years from year in which Resolution is filed. (2) No earlier, than two years after the Federal Government accepts State notification. (Allow 30 days after resolution will be sent to State for Federal acceptance.) c. A statement that the governing body understands that the agency may not again enter into an agreement to cover its employees under the Social Security program, after termination becomes effective. d. An authorization for an individual to send notice of termination in writing to the Board of Administration, Public Employees' Retirement -System. 2. Authorized Agent for the agency immediately sends certified copy of the adopted ,resolu- tion and notice to terminate to the Social Security Division, Publi.c'Employees' Retire- ment System. If no acknowledgement is received from the State within 3 weeks , please contact the Social Security Division. 3. Social Security Division notifies agency of the approved effective date of terminations when the Federal Government has acknowledged the notice and accepted the requested date of termination. 4. The agency must report wages earned through effective date of termination. 5. 'Shortly after the request for termination is received, and again prior to•the termination, date, the Social Security Division will audit the payroll and disbursement records of the agency. These records must be maintained and available for four years after termination becomes effective. The cost of the audits will be a charge to the agency in accordance with the schedule for recovery of administrative costs adopted by the Board of Administration of the Public Employees' Retirement System. 6. The agency may, upon formal written request to the State, ask that the termination request be revoked. The revocation request must be received by the State prior to the termina- tion date and in sufficient time to notify the Federal Government. i 7. Once coverage is terminated, the agency may not again enter into an agreement for cover- age of any of its employees. } 8. All questions regarding these procedures should be addressed to: SOCIAL SECURITY DIVISION, Public Employees' Retirement System, P. 0. Box 1953, Sacramento, CA 95809. 9167445-5651. PERS DO SSD 37B (V78) TERMINATION PROCEDURES RESOLUTION NC. 5636 (Requesting termination of the Social Security (Old --Age, Survivors, Disability, and Health Insurance) Agreement between the City of Carlsbad and the State of California) WHEREAS, the City of Carlsbad __, hereinafter referred to as "Public Agency", and the State of California entered into an agreement on ffioyember 3 19 58 _,, providing for the inclusion of the services of eligible employees of the Public Agency in the California State Social Security Agreement of ISarch 9, 1951, pursuant to -the provisions of Section 23.8 of the Social Security Act; and WHEREAS, coverage of.such services under the said agreement between the Public Agency and the State of California has been in effect for not less than five years from the effective date of coverage specified in said agreement, as required by lacy for termination of coverage; and WHEREAS, it is understood that if the said agreement between the Public A;seney and the State of ,California, and the California State Social Security Agreement with respect to the Public Agency, are terminated, 'the Public Agency may not again 4 enter into an agreement with the State to provide for inclusion.of the services • i 1 of -its employees in the California State Social Security Agreement; Now, there— fore, be it RESOLVED, That the City Council find and it hereby finds that it is in the best interest of the Public Agency to terminate said agreement with respect to all coverage groups thereof; and be it further RESOLVED, That p F be, and is hereby authorized and Name (Position) directed to notify the Board of Administration of the Public Employees, Retire- ment System of termination of the agreement of tiovember 3 between the Public Agency and the State of California, as required by law, effective December 31 , 1921 and be it further _ • -2- RESOLVED, That the said Board of Administration be, and it is hereby, requested to take such action as is required to effect termination of the California State Social Security Agreement of March 9. 1951, with respect to all - coverage groups of the Public Agency, effective December �1 , 19 1 ; and be it further RESOLVED, That the Authorized Agent of the Public Agency be and is hereby directed to forward to the Board of Administration a certified,copy of this Resolution. -------------..------------------------------------------------------------ IT IS HEREBY CERTIFIED That the foregoing Resolution was duly introduced and regularly adopted at a regularhWPHYA meeting of the -City Cou=ij.of the City of Carlsbad Ca, i for i a held, on the I 19th day of Decgmbgr - . 1921_.,•, by the following vote; AYES • HOES_ BY ALET11A L. RAUTENKRA�2'•� _ TITLE City Clerk PERS-SSD-64 Rev. 4 (2/75) ' BOARD OF ADMINISTRATION , pUBLIC EMKOYEES' RETIRmfEflT SYSTEM . P. 0. BOX 1953 SAORAHMO, CALIFORNIA 95809 You are hereby notified the Cit of Cd PUB aI AGENCY xill terminate its Social Security Agreement effective December 31 i Enclosed is a certified copy of Resolution Number 5636 adopted by the governing body on December 19, 1978 Signature PAUL D. Y3USSEY, City Manager i