The legislative body may establish a pension plan and provide retirement and death benefits for city employees in order to effect economy and efficiency in the public service and provide a means by which employees who become superannuated or otherwise incapacitated may, without hardship or prejudice, be replaced by more capable employees.
RetirementPension and Retirement Systems
Section § 45341
This law allows a city's legislative body to create a pension plan that offers retirement and death benefits for city employees. The goal is to save money and improve public service efficiency by enabling older or incapacitated workers to retire comfortably and make room for newer, more capable employees.
pension plan retirement benefits death benefits
Section § 45342
This law requires that any pension or retirement system created must be financially stable. Both the city and the employees have to contribute to the system. These contributions are calculated based on a percentage of the payroll and can only be adjusted based on how the system performs over time.
Any pension or retirement system adopted shall be on a sound actuarial basis and provide for contributions by both the city and the employee members of the system which shall be based on percentages of pay roll to be changed only by adjustments on account of experience under the system.
pension system retirement system actuarial basis
Section § 45343
This law section states that contributions should be made in such a way that by the time an individual retires, there is enough money saved to provide their promised benefits. This should be accomplished without needing any additional contributions from anywhere else.
Contributions shall be in amounts which will accumulate at retirement a fund sufficient to carry out the promise to pay benefits to the individual on account of his service as a member of the system, without further contributions from any source.
retirement fund benefit payments retirement contributions
Section § 45344
This law section specifies that if an employee provides service before becoming a member of a retirement system, the benefits related to that service must be covered by extra contributions from the employer. These costs can be spread out over a set number of years.
Benefits based on service rendered prior to membership in the system shall be met by additional contributions of the employer. Such prior service liability may be funded over a fixed period of years.
employer contributions prior service liability service before membership
Section § 45345
This law allows a city to choose a different way to provide retirement benefits for its employees by making a contract with the State Employees’ Retirement System. The city can enroll all or just some of its employees into this system, according to the law and the specific terms of the contract they agree on.
As an alternate method of providing a retirement system, the city may contract with the Board of Administration of the State Employees’ Retirement System and enter all or any portion of its employees under such system pursuant to law and under the terms and conditions of such contract.
retirement benefits city employees State Employees’ Retirement System
