Ordinance 1838CITY OF ALAMEDA ORDINANCE NO. 1838
New Series
AMENDING ORDINANCE NO. 1082 N.S PROVIDING FOR CERTAIN
AMENDMENTS TO THE PENSION SYSTEM FOR MEMBERS OF THE
POLICE AND FIRE DEPARTMENTS OF THE CITY OF ALAMEDA
ENTERING CITY SERVICE AFTER JANUARY 1, 1953
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ALAMEDA that:
Section 1. Sections 2, 6, 7, 8, 9, 11, 13, 14, 15, 16, 17,
19, 23 and 24 of Ordinance No. 1082 N.S. are hereby amended to read
as follows:
Section 2. Definitions. The following words and phrases
used in this ordinance, unless a different meaning is plainly in-
dicated in the context, shall have the following meanings;
(a) "Accumulated contributions" shall mean the sum of all
contributions deducted from the compensation of a member
plus interest thereon at the rate declared by the Pension
Board.
(b) "Adjusted monthly allowance" shall mean a modified or un-
modified allowance or benefit payable monthly under Sections
11, 12, 15 (b), 15 (c) or 16 of this ordinance after annual
adjustments applicable under Section 24 have been added to
the monthly allowance or benefit.
(c) "Base monthly allowance" shall mean the adjusted monthly
allowance for the base year.
(d) "Base year" shall mean the calendar year prior to the year
for which a monthly allowance is adjusted under the cost of
living provision.
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(e) "Beneficiary" shall mean a surviving spouse who has not
remarried, the unmarried children of a member not yet
twenty -one (21) years of age or any person or entity*
designated as the named beneficiary by the member.
(f) "Board" shall mean the Pension Board as created by
Ordinance No. 1079 New Series, of the City of Alameda.
(g) "City" shall mean the City of Alameda.
(h) "Compensation" shall mean the annual base salary plus annual
amount paid for holiday pay; uniform allowance: educational
incentive pay, where the member had received it for the
three (3) years prior to and at the time of retirement; and
pay received as acting pay for at least twelve (12) consecu-
tive months or received continuously immediately prior to
the time of appointment or promotion to the position pre-
viously held in an acting capacity. All items not
specifically listed herein, including but not limited to,
overtime, irregular acting pay and insurance, are not com-
pensation as defined herein.
(i) "Final compensation" shall mean the highest compensation
earned by a member during any consecutive twelve (12) month
period of service divided by twelve (12).
(j) "Index" shall mean the annual "Consumer Price Index for the
San Francisco- Oakland metropolitan area - -all items" pub-
lished by the Bureau of Labor statistics of the United States
Although "beneficiary" is not used for anything but lump sum pay-
ments, "entity" will not apply (if future changes apply "benefi-
ciary" to monthly payments) to monthly payments.
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Department of Labor or the applicable successor thereto as
determined by the Pension Board.
(k) "Lesser pension" shall mean a pension less than the un-
modified allowance based on modifications to the unmodified
allowance.
(1) "Member" shall mean any person who shall, subsequent to
January 1, 1953, enter the regular employment of the City
by accepting appointment to any position in the Police or
Fire Department of the City of Alameda carrying any rate or'
rank of service conferred upon police officers or fire
fighters and any member of the pension system established
by Ordinance No. 1079 New Series, who shall transfer his
membership therein to the pension system.
(m) "Pension Fund" shall mean the City of Alameda Police and
Fire Pension Fund as established by Ordinance No. 1082 New
Series, of the City of Alameda.
(n) "Pension System" shall mean the City of Alameda Police and
Fire Pension System established by Ordinance No. 1082 New
Series, as amended.
(o) "Permitted securities" shall mean those securities in which
the Public Employees' Retirement System is permitted under
Article 4 of Chapter 2 of the Public Employees' Retirement
Law to invest its funds.
(p) "Unmodified allowance" shall mean the maximum monthly retire -
ment allowance payable to a member before adjusted pursuant
to Section 24.
(qf Wocds used in the masculine gentler sha:i1 include the
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feminine and neuter genders, singular numbers shall include
the plural and plural numbers the singular, and "widow"
shall include "widower."
Section 6 Management of Pension Fund The Board shall
have exclusive control of the administration, investment and dis-
bursement of said fund, subject to the restriction that no invest-
ment shall be made except upon the affirmative vote of at least
three (3) members of the Board, and subject also to the terms,
conditions, limitations and restrictions imposed by the laws of the
State of California upon the making of investments by savings banks,
except as otherwise provided herein. The Board, subject to such
provisions as may be prescribed by law for the deposit of municipal
funds in banks, may deposit cash belonging to the Pension Fund in
any licensed national bank or banks in this state, or in any bank,
banks or corporations authorized or licensed to do a banking business
and organized under the laws of this State. The Board, subject to
such provisions as may be prescribed by law for the investment of
municipal funds in permitted securities, may invest a maximum of
twenty -five percent (25 %) of the pension fund in permitted securi-
ties. The Treasurer of the City shall be the custodian of the
Pension Fund, subject to the exclusive control of the Board as to
the administration, deposit and investment of said fund. Interest
on any cash and on any investment constituting a part of the said
fund shall be paid into said fund as received.
Except as herein provided, no member and no employee of
the Board shall have any interest, direct or indirect, ii the
making of any of said investments, or in the gains or profits
accruing therefrom. No member or employee of the Board, directly
or indirectly, for himself or as agent or partner of others, shall
borrow any of its funds or deposits or in any manner use the same
except to make such current and necessary payments as are
authorized by the Board; nor shall any member or employee of the
Board become an endorser or surety or become in any manner an
obligor for moneys invested by the Board.
Section 7 Contributions to Pension Fund by the City
There shall be paid into the Pension Fund by the City annually
from and after July 1, 1953, an amount which, together with the
moneys in the Pension Fund contributed by the City and the members
for the benefit of this pension system, shall be deemed sufficient
to meet all liability for benefits provided herein. The amount to
be contributed by the City shall be based upon the amount
recommended in the last previous actuarial report on the pension
system hereby established. The City shall further appropriate and
pay annually "into the Pension Fund an amount sufficient to defray
the administrative expense of the fund, the amount of which payment
shall be based on estimates furnished by the Board.
Section S contributions to Pension Fund by Members For
each member entering the pension system the normal rate of con-
tribution shall be nine percent (9 %) of the member's compensation.
Should a member of the pension plan established by
ordinance No. 1079 New Series, transfer his membership to the
pension system, and it is hereby specifically provided that such
transfer may be made under the conditions hereinafter set forth,
its rate of contribution shall be nine percent (9%) of his
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compensation. Upon the basis of any or all of the actuarial
investigation, valuation and determination provided for herein,
the Board may recommend revisions of the rates of contribution of
members as it shall deem necessary to adequately finance the
benefits which the normal rates of contribution are designed to
produce. No adjustment shall be included in the revised rates for
contributions made prior to the effective date of such revision.
Section 9. Retention and Deposit of Members' Contribu-
tions. The City Auditor is hereby authorized and directed to re-
tain nine percent (9%) of the monthly compensation of each member.
The moneys so retained shall be deposited in the Pension Fund.
Section 11. Service Retirement -- Monthly Pension.
A member shall be retired from service upon his written application
to the Board if he has attained age fifty (50) and has to his credit
at least ten (10) years of service in the aggregate. Such retire-
ment may be made by the Board on its own motion, provided that the
member has attained age fifty (50) and has to his credit twenty-
five (25) years of service in the aggregate,-if such action be
deemed by it to be for the good of the service. Every member who
is in active service on his 60th birthday shall be retired from
service on the first day of the calendar month next succeeding such
birthday.
Nothwithstanding the above, the City Manager, with prior
approval of the Pension Board, may extend the service of a member
for any period not in excess of the first day of the calendar
month next succeeding his 62nd birthday.
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Upon the retirement of a member as in this section provided,
he shall be paid a pension in monthly installments during his life-
time. The monthly installments shall be computed by multiplying
the Percentage Factor in Table A-applicable to the member's Age of
Retirement by the figure representing the actual number of years
of service, in the aggregate, standing to his credit and multiplying
the resultant thereof by the member's final compensation. The
maximum allowance shall be seventy-five percent (75%) of final
compensation for members of the pension system established by
ordinance No- 1082 New Series and the maximum allowance shall be
fifty percent (50%) for members of the pension system established
by ordinance No. 1079 New Series who transfer their membership to
the pension system established by Ordinance No. 1082 New Series,
The following table shows the percentage factor to
determine unmodified allowance for each year of credited service:
TABLE A
Age at Percentage Age at Percentage
Retirement Factor Retirement Factor
50
2,000%
53
2.420%
50
1/4
2.035
53
1/4
2.455
50
1/2
2,070
53
1/2
2.490
50
3/4
2-105
53
3/4
2.525
51
2.140
54
2.560
51
1/4
2,175
54
1/4
2.595
51
1/2
2.210
54
1/2
2,630
51
3/4
2.245
54
3/4
2.665
52
2.280
55
and over
2.700
52
1/4
2.315
52
112
2-350
52
3/4
2.385
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Section 13 Compensation Insurance Cases
(a) The monthly pension payable under this ordinance to a
member retired for disability shall be reduced by the maximum
amount of the monthly amount of any benefits paid or payable to
him, permitted by law, for the same period under any workers'
compensation insurance and safety laws of the State of California
because of disability resulting in his retirement. In case any or
all of the benefits to which any such member may be entitled under
workers' compensation insurance and safety laws shall be awarded
or paid in a lump sum, the monthly pension thereafter payable under
Section 12 hereof shall be reduced, for that portion of the total
period of time on which the award was based which remains after
retirement is granted, by the maximum amount of the monthly rate
on which such lump sum was computed, permitted by law.
(b) In the case of a compensable death award, the pension
payable to the dependents of the deceased member shall be reduced
by the maximum amount of the monthly payment, permitted by law,
received by the dependent under the award made for the death of
the member, until such time as the entire amount so awarded shall
have been paid. When full payment of the death award has been
made, the dependents of the deceased member, who are beneficiaries
under Section 15 (c) hereof, shall thereafter be paid the full
amount of the pension provided for by Section 15 (c) of this
ordinance, subject to all the conditions of said section 15 (c).
S ection 14 _ Optional Modification of P ension . Until
the First payment on account of any pension (whether ser ✓S_ce or
disability) is made, the member may elect to receive in lieu of
the unmodified allowance the actuarial equivalent of his pension
at the time of his retirement as a lesser pension payable through-
out his life, with one of the following options:
(1) if he dies before he receives in pension payments the
amount of his accumulated contributions as it stood at
his retirement, the balance of such accumulated con-
tributions shall be paid to his beneficiary.
(2) Upon his death, his lesser pension shall be continued
throughout the life of and paid to his surviving spouse,
provided she was his wife at least one (1) year prior to
his retirement.
Section 15. Death Benefits Prior to Retirement--Basic
and Special.
(a) Basic Benefit: The beneficiary of any member who shall
die, I nrior to his retirement, as the result of illness, accident
or other cause not connected with the performance of his duties
in the Police or Fire Department, shall receive a basic death
benefit which shall consist of accumulated contributions and
interest of the member plus an amount equal to the sum of one
month's salary for each year of membership in the pension system,
to a maximum of six (6) years of service. One month's salary
hereunder shall be computed by dividing the salary received by the
member during the twelve (12) months immediately preceding his
death by twelve (12).
(b) optional Modification of Basic Benefit: in lieu of the
basics dea!-h benefit the widow of a member who had at least five
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(5) years of membership at the time of death may elect, not later
than ninety (90) days after the Pension Board has determined that
the death is not service-connected, to allow the member's accumu-
lated contributions to remain in the Pension Fund. If the widow
elects to leave the member's contributions in the fund, the widow
shall receive a monthly benefit, under the same conditions as
provided under Section 16, at such time as the member would have
reached age fifty (50) and would have become eligible to apply for
a service retirement. This benefit shall be one-half (1/2) the
amount computed pursuant to Section 11 by applying Section 11 as
if the member had been age fifty (50) at the time of his death
and based on the years of service standing to his credit at the
time of his death and his final compensation at the time of his
death. Should the widow die or remarry prior to becoming eligible
for this optional modification, the basic death benefit shall be
paid to the beneficiary, but no additional payments shall be made.
This paragraph of Section 15 shall become effective January 1,
1978. No determination that death was not service-connected
shall be effective hereunder prior to January 1, 1978.
(c) special Benefit: if a member dies prior to his retire-
ment and his death was service-connected in the judgment of the
workers' Compensation Appeals Board, a monthly income shall be
paid to the widow for life or until her remarriage as the exclu-
sive death benefit. The adjusted monthly allowance shall be
based upon fifty percent (50Y.) of final compensation. If there
be no such widow or if a widow receiving such pension sLaLl die
or remarry before all children of the deceased member sTaLl have
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attained age 21, the benefit herein provided for shall be dis -
tributed among his unmarried children under age 21, until such
time as every child attains age 21 or dies.
In the event the special death benefit herein provided
for is payable, it shall be in lieu of the basic death benefit_
Section 16 Death Benefit After Retirement In the
event of the death of a member retired for service or disability,
whether ordinary or service - connected, and who elected to receive
the unmodified allowance, his widow, provided that the widow was
his spouse at least one (1) year prior to his retirement, shall
be eligible to have one -half (1/2) of his adjusted monthly
allowance continued throughout the widow's life or until remarriage.
In case of the death of the widow, the City agrees to continue to
distribute the benefit herein provided for among the minor children
of the member until they either marry or reach age 21, whichever
occurs first This section shall become effective July 1, 1977.
Section 17 Refund 'of Accumulated Contributions If the
service of a member is discontinued for any reason, and if
the member has less than ten (10) years of credited service at the
time of separation, he shall be paid said accumulated contribu-
tions, with interest, within sixty (60) days after the termination
of his services.
Section 19 Deferred Retirement If the service of a
member is terminated for any cause except dismissal or discharge
for any of the reasons enumerated in Section 25 of this ordinance,
and if the ,member has ten (10) years or more of service in the
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aggregate, he shall have the right to elect, not later than
ninety (90) days after the date upon which notice of said right is
mailed to the member's last address on file in the office of the
system, to allow his accumulated contributions to remain in the
Pension Fund. Failure to make election shall be deemed an election
to withdraw his accumulated contributions. If the member chooses
to leave his accumulated contributions in the Fund, he shall be
subject to the same age requirements as apply to other members
for service retirement, but shall not be subject to the minimum
service requirement. After qualification of such member for
retirement he shall be entitled to receive a pension based on his
accumulated contributions and on the years of service standing to
his credit at the time of retirement. Upon the death of such a
member prior to retirement, as in this section provided for, his
accumulated contributions and interest shall be paid to his named
beneficiary, but no additional payment on account of his death
shall be made.
Section 23 Annual Reports of Pensioners -- Assignment
to Duty in Emergency--Discontinuance or Sus erasion of Pension.
All persons who shall have been retired under any of the provi-
sions of this ordinance shall return signed such annual reports to
the Board as the Board may direct to them, and in case of great
public emergency may be assigned to and shall perform such duties
as the chief of their respective department shall direct. No
pensioner shall be so assigned to work in any department except
that from which he shall have been retired and that he can perform
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without adversely affecting his health.
In the case of any pensioner or beneficiary or trustee,
guardian or conservator thereof who fails to report to the Chief
of his department or the Pension Board, as required, after having
received notice of such failure, and upon satisfactory proof that
said notice was received, or shall disobey the requirements of
the Board, said Board may order that the pension allowance shall
immediately cease or be suspended.
Section 24 , Cost -of -Livia Ad
(a) Annual adjustment: There shall be added to the base
monthly allowance annually an adjustment for time commencing on
January 1, 1979 and effective as the adjusted monthly allowance
regularly payable on February 1, 1979. The adjustment shall be
computed by subtracting the index for the year prior to the base
year from the index for the base year, dividing the difference by
the ;.ndex for the year prior to the base year and multiplying the
quotient by the base monthly allowance. Such adjustment shall
be subject to the conditions and limitations provided in this
ordinance.
(b) If an increase in the adjusted monthly allowance would
exceed two percent (2%) of the base monthly allowance under sub-
section (a) then the annual adjustment shall be computed by
multiplying two percent (2%) times the base monthly allowance and
the computation sentence of subsection (a) shall not be applicable.
(c) Application allowances payable prior to January 1,
179: Commencing January 1, 1979, this section shall apply to
adjusted monthly allowances payable prior to said date. The
adjustments to such allowances shall be computed as if this sec-
tion had existed at the date such allowance became payable. No
adjustment or payment for years prior to January 1, 1979, shall be
made.
Section 2 . Section 3 of Ordinance No. 1082 N.S. is hereby
amended, in order to correct a typographical error therein, by
amending the first sentence of the fifth paragraph to read:
Appointive Trustees may be removed from the Board by
the vote of four (4) members of the City Council.
Section 3 . Except as stated in paragraph (b) of Section 15
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(January 1, 1978), Section 16 (July 1, 1977) and paragraphs (a)
and (c) of Section 24 (January 1, 1979), this ordinance shall be
effective January 1, 1977.
Attest:
City Clerk
Presi<W Officer of the Council
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1, the undersigned, hereby certify that the foregoing Ordinance was
duly and regularly adopted and passed by the Council of the City of Alameda
in regular meeting assembled on the 7th day of December, 1976, by the
following vote, to wit:
AYES: Councilmen Beckam, Diament, Hurwitz, Sherratt and
President Corica, (5).
NOES: None.
ABSENT: None.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 8th day of December, 1976.
C t j y Clerk of the City of Alameda