HomeMy WebLinkAbout1980-05-06; City Council; 6245; Amendment PERS Contract Safety Personnel14
CITY OF CARLSBAD
AGENDA BILL NO. (g Initial:
Dept.W_
DATE: May 6, 1980 C. Attyty.-
DEPARTMENT: PERSONNEL C. Mgr.
subject: AMENDMENT PERS CONTRACT
(Safety Personnel)
Statement of the Matter
The City agreed to amend its Public Employees Retirement System (PERS)
Contract as part of Memorandum of Understanding (MOU) signed with the
Carlsbad Police Officers' Association and the Carlsbad Firefighters'
Association. Three year agreements were signed with both associations
in 1979. The City agreed to amend the PERS Contract to provide the
1959 Survivor Benefits (Government Code Sections 21380-21388) for both
associations, effective July 1, 1980.
i.ne 1959 Survivor Benefits provides improved benefits to the survivors
of a member of the retirement system who dies before retirement. The
benefits provided by this amendment are outlined in Exhibit W . Presently,
police and fire employees are covered by the 1957 Survivor -,,Benefits.
The 1957 Survivor Benefits provide.a, monthly allowance equal to one-half
of what your retirement pay would have been had you'retired at the time of
death. The 1959 Survivor Benefits would be paid in addition to the
1957 Survivor Benefits.
The City presently contributes an amount equal to 17.886% of salary for
PERS retirement for each employee. The addition of the 1959 Survivor
Benefits will increase the contribution rate to 18.386%, an increase of
0.5%. The collar cost of retirement for police and fire next fiscal year
without the amendment would be $410,820. By including the 1959 Survivor
Benefits the dollar cost will be $422,290. The 0.5% increase in the
contribution rate will apply until the year 2000.
In order to implement the amendment of PERS contract, the Council needs
to adopt a Resolution of Intention (Exhibit B). The Council may take
final action to amend the Pers contract by the adoption of an ordinance
amending the contract at the June 4, 1980 Council meeting.
Exhibit
A. Description of 1959 Survivor Benefits
B. Resolution of Intention, Resolution No. /� a
Recommendation
Adopt Resolution No. Cp /
Council Action:
5-6-80 Council adopted Resolution 6180.
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RESOLUTION NO. 6180
RESOLUTION OF INTENTION TO APPROVE AN
AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY CF CARLSBAD
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 them-
selves and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedure to amend this contract is the
adoption by the legislative body of the public a;ency of a resolu-
tion (:iving notice of its intention to approve an amendment to said
contract, which resolution shall contain a summary of the change
proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Sections 21380-21388 (1959 Survivors
Program), for local safety members.
NOW, THEREFORE, BE IT RESCLVED, that the governing body of the above agency
gives, and it does hereby give notice of intention to approve an
amendment to the contract between the said governing body and the
Board of Administration of the Public Employees' Retirement System,
a copy of said amendment being attached hereto, as an "Exhibit" and
by this reference made a part hereof.
By
NAM
Ma or
TITIZ )
May 6, 1980
(Date adopted and approv r Ret. Form 122
Exhibit A to 6180
benefits to Employees Under Resolution No.
PERS SURVIVOR BENEFITS
• (Benefits provided by Sections 21380-21388 of the Retirement Law)
BENEFITS
Survivors of members who elect C-ivv_age under the MRS Survivor Program and
whose death occurs before retirement will receive a monthly life income as follows:
Spouse and two -or more dependent children $430
or
Three or more dependent children, alone
Spouse and one dependent child $360 '
or
Two dependent children, alone
Spouse, alone, age 62 $180
or
One dependent child,, alone
If there is no srouse or dependent child, then $180
to each dependent parent (age 62)
CONDITIONS:
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I. A dependent child i.c one under the age of 18 and unmarried, or a disabled
child of any age who has been continuously disabled since age 18. (For
purposes of the 1959 Survivor allowance, a person shall be considered
under the age of 18 if lie is unmarried, full-time student between"the
ages of 18 and 22.)
2. A spouse ceases to be eligible for a benefit upon remarriage.
3. A widower will be eligible for the scene benefit as a widow.
4. A widow (or widower) must be married to member prior to the occurrence of
the injury or onset of the illness whi0 resulted in death.
5. The basic death benefit currently included in your retirement program pro-
vides that should a member die prior to his retirement, his beneficiary
would be paid the member's accumulated contributions plus an additional
amount equal to one-month's salary for each year of service, up to a max-
imum of six months. The above survivor benefits will be payable in addition
to any basic death benefit the survivor may be entitled to receive.
6. If a member is covered under both the PERS 1959 Survivor Benefit described
above and the survivor benefits as provided in Suction 21365.5 (1957
Survivors Benefit) of the Retirement Iaw, the survivor will be paid both
benefits.
7. Section 21383 - If survivor is entitled to special death benefit and at
the name time is entitled to receive a survivor allowance, the survivor
allowance payable in any month shall be reduced by the amount of the
special death benefit allowance.
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CAST TO THE EIPLOYr G M
Each employee will ccntribute $2.00 a month in addition to his normal retire-
ment contributions. Ile will continue to pay this additional amount until either
.termination of employme,,nt or retirement and under no circumstances will these
contributions be refundable.
EFFECTIVE DATE '
These survivor benefits will become effective on (Date).
All present members of the System will be given the opportunity by written ba]lvt
to select this survivor coverage. Persons Who choose coverage will retrain covered
until they terminate their employment or retire. t
For agencies not covered under Social Security all future employees would be
mandatorily covered under this program, For agencies who are covered under Social
Security all future employees are mandatorily covered under Social Security and,
therefore, are not eligible for the PERS survivor benefits.
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Under the PM survivor program, if a member passes away before retirement
leaving spouse and four children,, spouse would receive a monthly income of $430
until such time as the three oldest children have passed aoe 18 (so that she now
only has one child under the age of 18) at which time her benefit would be reduced
to $360. The $360 would continue to be paid until the last child passes the age of
18 at which time the payment would cease until the --pouse reaches the age of 62. i
The spouse would then receive $180 a month for the remainder of his/her lifetime.
The spouse ceases to be eligible for the benefit upon remarriage although benefits
would continue to any remaining children under the age of 18. {
For the purposes of the 1959 Survivor allowance, a person shall be considered
under the age of 18 if he/she is an unmarried, full-time student between the saes of
18 and 22.
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