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Home My WebLink About7533 - PERS Agreement AmendmentRESOLUTION N0. 7533 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 OF NEWPORT BEACH 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 themselves and their employees to amendments to said law; and WHEREAS, one of the steps required in the procedure to amend this contract is the adoption by the legislative body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the changes proposed in said contract; and WHEREAS, the following is a statement of the proposed changes: 1. Employees who have at least 5 years of service and who are at least age 55 have further death protection under the 1957 Survivor Program. Should such an employee die before retirement, his surviving widow may elect to receive either the basic death benefit or a monthly in- come equal to one -half the unmodified retirement allowance the em- ployee was eligible for on the date of his death. The monthly income is payable until the widow's death or remarriage with a guarantee that she will receive at least as much as she would have received under the basic death benefit. 2. A monthly allowance shall be paid to certain survivors of a member who dies before retirement. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF NEWPORT BEACH gives, and it does hereby give notice of intention to approve an amend- ment to contract between said CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment and a summary of the major changes of the proposed amendment being attached hereto, marked Exhibits "A" and "B" and by this reference made a part hereof. CERTIFIED AS THE ORIGINAL SSEP 2 3 1971 CITY CLERK OF THE CITY OF NEWPORT BEACH ATTEST: AATEi ? i -k� ._✓� 7r z ' it e r c J4 September 20, 1971 Date adopted and approved CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY (Name) Mayor (Title) Ret. Form 122 A,%WD 7HT TO CONTRACT WW EN THE EXHIBIT A BOAST? OF AIDNI +ISTIHATION PUBLIC r.HPLOY :*a1 HSTIA1-KEW SYSTEM AAiD TI: CITY CrVNCIL OF TES CITY CB :!EWORT MUCH The Board of Administrations Public Employees' Retirement Systems hereinafter referred to as Board and the CITY COUNCIL of the CITY CF ' Z'n'ROAIT BSAG9, hereinafter referred to as ?nblio Agency having entered into a contract under date of April 27, 19115, effective July 1, 19115, and as amended effective ;arch 1, 1943, usivrmsber 1, 1951, April 1, 19569 and October 31s 19700 which provides for participation of ?ublic Agency in said System, Board and ?ublic Agency hereby agree as follows A. The following paragraphs shall be added to said contracts 8 (h) Section 21355.5 ( providing a monthly allowance in lieu of the basic death benefit for certain survivors of a member who Oiss in employ- ment after qualifying for voluntary service retirement). 8 (1) Section 21330 -7 (providing for allowances for survivors of members covered under the program upon death before retirement). B. Parattrapha 9 (a) and 9 (b) shall Le stricken from said contract and the following paragraphs substituted therefor: 9. Public Agency shall contribute to said Retirement System as followas a. With rospect to miscellaneous - ambers, the public agency shall contribute the followings percenta, ?es of mo -nthly salaries carried as miscellaneous caembers of said Systems (1) 13.15 percent on account of the liability for currant service benefits. b. With rrsspact to local safety membere, the public afency shall contribute the following percentages of monthly salaries earned as local safety °iembers of said Systems (1) 9.393 percent on account of the liability for current service benefits. C. .Thin amendment, shall be attached to said contract and shall become effec- tive on the day of BOARD OF Al4V113T'1ATIOq PUBLIC VFVLOY'Z%LS' RETINW4T SYSTEM BY ldilliaa So Payne, 5xecutive Officer Attests CITY COUNCIL Cr TBE CITY Or N- ?r1'ORT 2 ACtl _w^ Rot. rorm 702 p- Benefits to Employees Under PERS SURVIVOR BENEFITS (Benefits provided by Sections 21380 -21387 of the Retirement Law) Survivors of members who elect coverage under the PERS survivor program and whose death occurs before retirement will receive a monthly life income as follows: Widow and two or more dependent children $250 o: Three or more dependent children, alone Widow and one dependent child $180 or Two dependent children, alone Widow, alone, age 62 (widower age 65) $ 90 or One dependent child, alone If there is no widow or dependent child, then $ 90 to each dependent parent (mother 62, father 65) Conditions: 1. A dependent child is 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 he is an unmarried, full -time student between the ages of 18 and 22.) 2. A widow ceases to be eligible for a benefit upon her remarriage. 3. A widower will be eligible for a benefit the same as a widow .provided he was dependent upon the deceased member for at least one -half of his support. 4. 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 memberfs 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. 5. If a member is covered under both the PERS 1959 Survivor Benefit described above and the survivor benefits as provided in Section 21365.5 (1957 Survivors Benefit) of the Retirement Law, the survivor will be paid both benefits. _M 6. Section 213a3 - If survivor is entitled to special death benefit and at the same 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. Ret. Form 1171 -1 (Rev.1/70) Kalz &y*fi4:14D a'ZI T.l!xa Each employee will contribute $2.00 a month in addition to his normal retire- ment contributions.. He will continue to pay this additional amount until either termination of employment 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 ballot to select this survivor coverage. Persons who choose coverage will remain covered until they terminate their employment or retire. IT IS NOT NOW PROVIDED that persons, who do not choose coverage will be allowed to choose coverage at a later date. For agencies not covered under OASDI all future employees would be mandatorily covered under this program. For agencies who are covered under OASDI all future employees are mandatorily covered under OASDI and, therefore, are not eligible for the PERS survivor benefits,. Under the PERS survivor program, if a member passes away before retirement leaving a widow and four children, the widow would receive a monthly income of $250 until such time-as the tbree oldest children have passed age 18 (so that she now only has one child under the age of 18) at which time her benefit would be reduced to $180. The $180 would continue to be paid until the last child passes the age of 18 at which time the payment would cease until the widow reaches the age of 62. She would then receive $90 a month for the remainder of her lifetime. The widow ceases to be eligible for her benefit when she remarries although benefits would continue to any remaining ,children under the age of 18. For purposes of the .1959 Survivor allowance, a person shall be considered under the age of 18 if he is an unmarried, full -time student between the ages of 18 and 22. Ret. Form 1171 -2 (Rev. 10/69)