Resolution 2757-03
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RESOLUTION NO. 2757-03
RESOLUTION OF INTENTION
TO APPROVE A CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
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 of said agency in the Public
Employees' Retirement System, 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.
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A'l"rEST:~ -Shr-"r
C erk Board
Board President
Title
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Date a pted and approved
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(New Agency)
CON-301 (Rev. 4/96)
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A
CalPERS
EXHIBIT
California
Public Employees' Retirement System
.
CONTRACT
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Between the
Board of Administration
California Public Employees' Retirement System
and the
Board of Directors
South Tahoe Public Utility District
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In consideration of the covenants and agreement hereafter contained and on the part of
both parties to be kept and performed, the governing body of above public agency,
hereafter referred to as "Public Agency", and the Board of Administration, Public
Employees' Retirement System, hereafter referred to as "Board", hereby agree as
follows:
1. All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 55 for local miscellaneous members.
2.
Public Agency shall participate in the Public Employees' Retirement
System from and after making its
employees as hereinafter provided, members of said System subject to all
provisions of the Public Employees' Retirement Law except such as apply
only on election of a contracting agency and are not provided for herein
and to all amendments to said Law hereafter enacted except those, which
by express provisions thereof, apply only on the election of a contracting
agency.
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,.EASE DO NOT SIGN "EXHIBiT ONL'f'
3.
Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. Any exclusion(s) shall remain in effect until such time as the Public
Employees' Retirement System determines that continuing said
exclusion(s) would risk a finding of non-compliance with any federal tax
laws or regulations. If such a determination is contemplated, the Public
Employees' Retirement System will meet with the Public Agency to
discuss the matter and coordinate any required changes or amendments
to the contract.
In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
a. SAFETY EMPLOYEES; AND
b.
MEMBERS OF THE GOVERNING BODY FIRST ELECTED OR
APPOINTED PRIOR TO JULY 1, 1994. (Elected or appointed
officials who are first elected or appointed on or after July 1,
1994 or to a term of office not consecutive with a term held on
June 30, 1994 are excluded pursuant to Government Code
Section 20322).
5. The percentage of final compensation to be provided for local
miscellaneous members for each year of credited prior service is 0% and
the percentage of final compensation to be provided for each year of
credited current service is 100% and determined in accordance with
Section 21354 of said Retirement Law (2% at age 55 Supplemental to
Federal Social Security).
6. Public Agency elects to be subject to the following optional provisions:
a. Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
7. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members of said Retirement System.
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8.
Public Agency shall also contribute to said Retirement System as follows:
a. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required by law.
b. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
9. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
10. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. If more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
B. This amendment shall be effectWii<bh the day of
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BOARD OF ADMINISTRATION !\'>~9' BOARD OF DIRECTORS
PUBLIC EMPLOYEES' RETIRE~lIENT SYSTEM SOURTH TAHOE PUBLIC UTILITY
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~:S.~' DISTRICT ... "
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BY -," ,~ BY ""J
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KENNETH W~M~ZION, CHIEF PRESIDING OFFICE~~\"" '
ACTUARIAL'&.EMPLOYER SERVICES DIVISION ("'~
PUBLIC EMPLOYEES' RETIREMENT SYSTEM ~~
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Witnes~~~
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Attestv
Clerk
AMENDMENT ER# 4882
PERS-CON-702A (Rev. 8\02)
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CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
(916) 326-3420
SUMMARY OF MAJOR PROVISIONS
2% @ 55 Formula (Section 21354)'
Local Miscellaneous Members
SERVICE RETIREMENT
To be eligible for service retirement, a member must be at least age 50 and have five years of
CalPERS credited service. 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 2% of final compensation for each year of credited
service upon retirement at age 55. If retirement is earlier than age 55, the percentage of final
compensation decreases for each quarter year of attained age to 1.426% at age 50. If
retirement is deferred beyond age 55, the percentage of final compensation increases for each
quarter year of attained age to 2.418% at age 63.
Final compensation is the average monthly pay rate during the last consecutive 36 months of
employment, or 12 months if provided by the employer's contract, unless the member
designates a different period of 36 or 12 consecutive months when the average pay rate was
higher.
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DISABILITY RETIREMENT
Members permanently incapacitated from performing their duties are eligible for disability
retirement provided they have at least five years of service credit. The monthly retirement
allowance is 1.8% of final compensation for each year of service. The maximum percentage for
members who have between 10.000 and 18.518 years of service credit is one-third of their final
compensation. If the member is eligible for service retirement, the member will receive the
higher allowance payable, service or disability. If provided by the employer's contract, the
benefit would be a minimum of 30% of final compensation for the first five years of service
credit, plus 1 % for each additional year of service to a maximum benefit of 50% of final
compensation.
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 may receive 50% of their final
compensation (or more by additional contract provisions). The industrial disability retirement
allowance for members who entered membership in a miscellaneous category after January 1,
1980, cannot exceed the amount that would be payable for a service retirement if employment
had continued to age 63. This limit may not apply if the member was disabled because of a .
direct violent act upon their person or as a result of hazardous and dangerous duty required for
the position. If the member is eligible for service retirement, the service retirement allowance is
payable if greater than the industrial disability retirement allowance.
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PRE-RETIREMENT DEATH BENEFITS
Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up
to six months' pay (one month's salary rate for each year of current service to a maximum of six
months).
PERS-CON-50 (Rev. 1/02)
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1957 Survivor Benefit: An eligible 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 highest service retirement allowance the member would have received
had he/she retired on the date of death. The 1957 Survivor Benefit is payable to the surviving
spouse until death or to eligible unmarried children until age 18.
1959 Survivor Benefit: (If provided by the employer's contract and the member is not covered
under social security). A surviving spouse and eligible children may receive a monthly
allowance as determine by the level of coverage. This benefit is payable in add.ition to the
Basic Death Benefit or 1957 Survivor Benefit. Children are eligible if under age 22 and
unmarried.
Pre-Retirement Optional Settlement 2 Death Benefit: (If provided by the employer's contract.)
The spouse of a deceased member, who was eligible to retire for service at the time of death,
may to elect to receive the Pre-Retirement Optional Settlement 2 Death Benefit in lieu of the
lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the
member would have received if he/she had retired for service on the date of death and elected
Optional Settlement 2, the highest monthly allowance a member can leave a spouse.
COST-OF-L1VING ADJUSTMENTS
The cost of living allowance increases are limited to a maximum of 2% compounded annually
unless the employer's contract provides a 3, 4, or 5% increase.
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DEATH AFTER RETIREMENT
The lump sum death benefit is $500 (or $600, $2,000, $3,000, $4,000 or $5,000 if provided by
the employer's contract) regardless of the retirement plan chosen by the member at the time of
retirement.
TERMINATION OF EMPLOYMENT
Members who have separated from employment may elect to leave their contributions on
deposit or request a refund of contributions and interest. Those who leave their contributions
on deposit may apply at a later date for a monthly retirement allowance if the minimum service
. and age requirements are met. Members who request a refund of their contributions terminate
their membership and are not eligible for any future benefits unless they return to CalPERS
membership.
EMPLOYEE CONTRIBUTIONS
Miscellaneous members covered by the 2% @ 55 formula contribute 7% of reportable earnings.
Those covered under a modified formula (coordinated with Social Security) do not contribute on
the first $133.33 earned.
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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 (the period of time before
the employer provided retirement coverage under CaIPERS). All employer contribution rates
are subject to adjustment by the CalPERS Board of Administration.
PERS-CON-50 (Rev. 1/02)