Sacramento Municipal Code Art. XVII Sacramento City Employees' Retirement System

At the time these amendments to the Sacramento City Charter are submitted to the electors of the city, they are intended to take effect on January 13, 1990. In the event that such amendments are adopted by the electors of the city, but for any reason are not filed with the Secretary of State on or prior to January 13, 1990, then in such event, they shall be effective on the first day of the month next following the date they are filed with the Secretary of State. (Amended June 6, 1989)

The city council may enter into a contract with the Board of Administration of the Public Employees' Retirement System (PERS) for participation in that system of the city and employees who are, as of the effective date of any such contract, safety members of the Sacramento City Employees' Retirement System (SCERS). Any such contract (hereafter "new contract") shall be subject to the following conditions:

(a) The new contract shall cover all active safety employees who are members of SCERS.

(b) The existing contract with PERS for participation in that system or the city and employees whose date of city employment is on or after January 29, 1977 shall continue in effect, as amended by the city council from time to time.

(c) The new contract shall specify that active safety employees shall be transferred to PERS and become PERS local safety members.

(d) The benefits prescribed in the new contract shall, for safety employees, be as follows:

(1) 2% at age 50 with 3% cost-of-living allowance for transferred active safety SCERS employees.

(2) 2.5% at age 55 with 2% cost-of-living allowance for employees hired after the effective date of the new contract, with the statutory employee contribution rate. If the statutory employee contribution rate is other than 9%, the actual employee contribution rate shall be 9% of compensation.

(e) The procedures specified in Government Code Sections 20457 and 20458, as those sections may be amended or renumbered from time to time, relating to the holding of an election among the safety members of SCERS, shall be followed.

(f) The new contract shall specify that an allocable proportion of the assets and funds of SCERS shall be transferred to PERS pursuant to Government Code Sections 20522 and 20523, or some comparable procedure approved by the city council.

(g) The city council, if it enters into such contract, is authorized to take any action on behalf of the city required or permitted under the Public Employees' Retirement Law.

(h) The new contract shall provide that active safety employees who are SCERS members and who are transferred to PERS shall pay to PERS the same contribution rates as they were paying to SCERS, pursuant to Government Code Section 20605.5. In the event that the procedures specified in this paragraph require modification, the city council shall have the authority to adopt such modification by ordinance prior to approving a new contract with PERS.

(i) Any application for retirement or death benefit which is pending as of the effective date of these amendments to the Sacramento City Charter shall be deemed to be an application under PERS. For purposes of this subsection (1) an application is "pending" when:

(1) it is pending before the retirement system manager; or

(2) an appeal relating to the application is pending before the Retirement Hearing Commission; or

(3) the Retirement Hearing Commission has determined the appeal and the time for seeking judicial review has not expired; or

(4) the Retirement Hearing Commission has determined the appeal and judicial review has been timely sought by any party to the appeal, and no final judgment has been entered in the Superior Court; or

(5) a final judgment has been entered in the Superior Court and the appellate period has not expired, or timely appellate review has been sought and no final appellate judgment has been issued.

(Amended June 6, 1989)

The city council shall secure an actuarial report of the probable cost and effect to the system, its members and the city, of any proposed change in the contribution rates or benefits under the system before enacting an ordinance or resolution relating to changes in the contribution rates or benefits under the system or before voting to submit to the electorate any proposed Charter amendment or ordinance providing for such changes. Prior to enacting any ordinance pursuant to former (1989) Charter section 400, defining or redefining the term "compensation," the city council shall secure an actuarial report of the probable cost and effect to the system, its members and the city resulting from the enactment of any such ordinance.

The city council may from time to time amend any contract with PERS. If it enters into any contract amendment, the city council is authorized to take any action on behalf of the city required or permitted under the Public Employees' Retirement Law. Prior to entering into any such amendment relating to contribution rates or benefits, the city council shall secure an actuarial report of the probable cost and effect to the city and the affected members of such amendment. (Amended June 6, 1989)

Subject to section 372, the council shall provide, by ordinance or ordinances, for the continuance, as part of the retirement system, of all employee retirement plans in operation upon the effective date of this article. Except as otherwise specifically provided in this article, no such plan, or any provision thereof, shall be modified or amended except through the adoption of an ordinance approved by a majority of the voters voting upon such proposition at a general municipal election or a special municipal election called for such purpose. Allowances existing in favor of or on account of retired employees of the city at the time of the adoption of this article shall be continued in force in accordance with the provisions under which said allowances were made. Except as provided in section 379, relating to cost-of-living adjustments, nothing in this article shall be construed as changing the status of members of such existing plans or the benefits thereunder. Notwithstanding any other provision in this article, the council shall provide by ordinance for continuation of the benefits of transferred members (as defined in former (1976) Charter section 359 and 360) pursuant to former (1976) Charter sections 359 through 366; provided, however, that any such transferred member shall have the right to elect in the manner provided by ordinance adopted by the city council, to have his or her rate of contribution, as required by former (1976) Charter section 365, based upon the rate of contribution for members of the plan established by former (1989) Charter section 399.

The council shall enact an ordinance or ordinances prescribing the conditions by which any member of the system retired for service or disability under the provisions of former (1976) Charter sections 173, 175.13 or 302 may make an election to receive a reduced retirement allowance during the member's lifetime in order that the member's surviving spouse may receive a continuation allowance. The provisions of said ordinance or ordinances shall substantially conform to the provisions of former (1989) Charter section 435(a), provided that no continuation allowance shall be payable unless one would otherwise be payable under the provisions of the Charter which apply to the member and provided further that the continuation allowance under former (1976) Charter section 173 shall be two-thirds or the member's reduced allowance. (Amended June 6 1989)

The ordinance or ordinances enacted by the council under section 374, providing for the continuance of the "equal shares retirement plan" created by former (1976) Charter section 302, shall provide that the board shall direct the actuary in making the actuarial investigations and evaluations required by former (1976) Charter section 300 for purposes of determining members' contribution rates to assume in addition to all other actuarial assumptions:

(a) That all persons who enter the employ of the city on or after the effective date of this article and who would have been eligible for membership in the "equal shares retirement plan" under former (1976) Charter section 302 and ordinances enacted thereunder before the effective date of this article, are members of the "equal shares retirement plan" if they would have remained in the employ of the city; and

(b) That no person who was a member of the "equal shares retirement plan" on the effective date of this article made the election provided by former (1989) Charter section 401.

(Amended June 6, 1989)

The adoption of this article shall not alter or modify the liability of the city, the retirement system, or its members, for retirement plans which were in existence upon the effective date of this article, nor shall it alter or modify the method of funding such plans as prescribed in former (1976) Charter sections 167 to 175.29 and 290 to 367, except as provided in former (1989) Charter sections 374, 375 and 379. (Amended June 6, 1989)

All provisions of former (1976) Charter sections 173.2, 173.3, 173.4 and 173.5 granting increased retirement allowances to or on account of retired members of the Sacramento City Employees' Retirement System shall be continued as an ordinance of the city and shall continue in effect until otherwise repealed by subsequent amendment of this Charter, The provisions of former (1976) Charter section 175.29 shall be continued in effect as an ordinance of the city, but only insofar as necessary to continue in effect cost-of-living adjustments and the funding or such adjustments which have been made under said section and were in effect prior to July 1, 1970. (Amended June 6, 1989)

The city council shall enact an ordinance or ordinances prescribing the conditions according to which any and all employees of the city, who are members of the Sacramento City Employees' Retirement System and who, on or after January 1, 1963, are transferred to and become employees of Sacramento County and members of the Sacramento County Employees' Retirement System, as part of any consolidation of city functions with, or transfer of city functions to, Sacramento County, may retain their membership in the Sacramento City Employees' Retirement System. The provisions of said ordinance shall substantially conform to the provisions of former (1976) Charter section 175.27 with such modifications as are necessary to make the provisions of said section applicable to the transferred employees. This section shall not apply to any employee of the city who becomes a member of this system after the effective date of any reciprocity agreement entered into pursuant to former (1976) Charter section 367. (Amended June 6, 1989)

The city council shall enact an ordinance or ordinances prescribing the conditions according to which, as of July 1 of each year, every monthly allowance payable to or on account of a member of this system whose retirement or death as a member of this system occurred prior to July 1 of the preceding year shall be increased or decreased by a percentage of the allowance then being received. Such percentage shall approximate, to the nearest one-tenth of one percent, the percentage of annual increase or decrease, if any, in the cost-of living during the whole of the preceding calendar year by reference to the current U.S. Department of Labor, Bureau of Labor Statistics' Consumer Price Index for the San Francisco-Oakland area (or the Sacramento area, in the event the Index is established for the Sacramento area), for the whole of the preceding calendar year; provided that such increase or decrease shall not exceed three percent of any allowance in any year, regardless of the percentage of change in cost-of-living; and provided further that no allowance shall be reduced below the amount payable at death or retirement.

In addition to the increase provided in the preceding paragraph, the city council shall enact an ordinance or ordinances prescribing the conditions according to which, as of July 1 of each year, every monthly allowance payable to or on account of a member of this system whose retirement or death as a member of this system occurred on or after July 1 of the preceding year shall be increased or decreased by a percentage of the allowance then being received. For each whole month of the preceding fiscal year during which a member was retired or for each whole month of the preceding fiscal year after the member's death, such percentage shall approximate one-twelfth of the percentage of annual increase or decrease (to the nearest one-tenth of one percent), if any, in the cost-of-living during the whole of the preceding calendar year by reference to the current U.S. Department of Labor, Bureau of Labor Statistics' Consumer Price Index for the San Francisco-Oakland area (or the Sacramento area, in the event the Index is established for the Sacramento area), for the whole of the preceding calendar year; provided that such increase or decrease shall not exceed three percent of any allowance in any year, regardless of the percentage of change in cost-of-living; and provided further that no allowance shall be reduced below the amount payable at death or retirement. The provisions of this paragraph shall apply only to members whose retirement or death occurred on or after July 2, 1979.

The amount of any monthly allowance payable to a survivor or beneficiary upon death of a retired person shall be the amount which would be payable as of the date of death had payment of such allowance begun on the date of retirement, and shall thereafter be adjusted in accordance with this section.

The amount of any cost-of-living increase or decrease in any year which is in excess or the maximum annual allowance adjustment of three percent provided in this section shall be accumulated from year-to-year and included in the computation of increases or decreases in succeeding years. The provisions of this paragraph shall be applied to the allowance of individual beneficiaries by classes based upon the fiscal year in which the member retired or died, so that each allowance shall have applied to it only such increase or decrease as shall have accumulated during or after the fiscal year in which the member retired or died. No allowance shall be reduced by operation of this section below the amount payable at the time or retirement.

Increases in allowances payable pursuant to this section shall be funded by contributions of the members subject to this section and contributions of the city. The individual member's contribution shall be at the rate of 6.7% of his or her contributions (excluding additional contributions under former (1989) Charter section 404). The city's contribution shall be determined by the board in accordance with its funding policy in former (1989) Charter section 385 at a rate required to fund the cost of increases under this section and former (1976) Charter section 354 not provided by member contributions. The board shall provide for transfer to members' accounts under this section of the portion of accumulated contributions under former (1976) Charter section 354 which were made by members thereunder becoming subject to this section.

The city council shall provide by ordinance for the continuation of benefits provided by former (1976) Charter section 354 for members of this system who have elected to receive the benefits provided by former (1976) Charter section 354. The provisions of said ordinance shall substantially conform to the provisions of former (1976) Charter section 175.29 and shall include the provisions of the second paragraph of this section; provided, however, that in fixing the rates for member contributions the board shall assume that all persons who are members of this system or are members of PERS and are in the employ of the city would continue to make contributions and receive benefits under former (1976) Charter section 354. (Amended June 6, 1989)

The following words and phrases as used in this article and ordinances enacted thereunder, unless a different meaning is plainly required by the context, shall mean:

"Board" shall mean the Administration, Investment and Fiscal Management Board as referred to in section 381 of this Charter.

"Charter" shall mean the Charter of the City of Sacramento.

"Commission" shall mean the Retirement Hearing Commission as referred to in section 388 of this Charter.

"Council" or "city council" shall mean the council of the City of Sacramento.

"Former (1976) Charter section" shall mean a section of this Charter as said section read on November 1, 1976 which was the date immediately preceding the date on which said section was repealed and shall further mean and refer to any section which was repealed at any earlier date, as such section read on the date immediately preceding its repeal.

"Former (1989) Charter section" shall mean a section of this Charter as said section read on June 5, 1989, which was the date immediately preceding the date on which said section was repealed.

"Member" shall mean any person who is a member of the retirement system.

"Miscellaneous member" or "miscellaneous officer or employee" shall mean any officer or employee who is a member of the retirement system and is not a safety member as defined in this section.

"Retirement system" or "system" shall mean Sacramento City Employees' Retirement System referred to in sections 372 and 374.

"Safety member" shall mean a member whose employment is, or was, as an officer or employee of the police or the fire departments of the city, whose principal duties consist of either active law enforcement or full-time firefighting and fire prevention, respectively. "Safety member" does not include those persons employed in duties of clerical, communication, identification, repair, or other nature even though such persons may be subject to occasional call, or are occasionally called upon to perform duties within the scope of active law enforcement or full-time firefighting and fire prevention.

"Surviving spouse" shall mean the widow of a male member or the widower of a female member.

Words used in the masculine gender shall include the feminine and neuter genders and the singular shall include the plural and the plural the singular. (Amended June 6, 1989)

The retirement system shall be managed by the Administration, Investment and Fiscal Management Board which shall consist of the following persons:

(a) The city manager or designated representative;

(b) The city finance director, or designated representative;

(c) The city treasurer, or designated representative;

(d) A resident of the city not connected with the government thereof, appointed by the city council, who is qualified by training and experience in the management and investment of funds; and

(e) A resident of the city not connected with the government thereof, appointed by the city council.

A majority of members of the board shall constitute a quorum. Action by the board shall require the affirmative vote of three members, except that a lesser number may adjourn from time to time.

The two incumbent board members holding the seats described in subparagraphs (d) and (e) shall continue to serve until the expiration of the term for which they were initially appointed, or until a successor is appointed. Thereafter, such members shall be appointed for a term of three years, or until a successor is appointed. (Amended June 6, 1989)

Subject to the provisions of sections 388 and 391, the board shall have full authority under the Charter and such general ordinances as may be lawfully adopted by the city council to maintain and manage retirement plans of this system, including but not limited to the adoption of investment standards, the fixing of contribution rates, the administration and investment of funds, the selection of investment advisors, the crediting of interest, any action required of it by the Charter and any action relating to the fiscal management of the system except those matters directly pertaining to claims for benefits, and claims for refunds under former (1989) Charter section 436, filed with the retirement system manager.

All references to the "retirement board" or "board" in former (1976) Charter sections 167 to 175.29, inclusive (and ordinances enacted to maintain and implement the retirement plans created by said sections) and former (1976) Charter sections 290 to 367 inclusive (and ordinances enacted to maintain and implement the retirement plans created by said sections) shall mean the Administration, Investment and Fiscal Management Board; provided, however, nothing herein shall divest the Retirement Hearing Commission of the appellate powers granted to it by section 388 of this Charter; and when said commission has jurisdiction by virtue of an appeal having been lawfully taken to the commission, all references to the "retirement board" or "board" in such former Charter sections and ordinances shall mean the Retirement Hearing Commission. It is further provided that nothing herein shall divest the retirement system manager of the powers granted to him or her by section 391 of this Charter; and when said manager has jurisdiction by reason of a claim for benefits having been lawfully filed with him or her, all references to the "retirement board" or "board" in such former (1976) Charter sections and ordinances shall mean the retirement system manager.

The board may adopt rules and regulations consistent with this article to implement and carry out its provisions. (Amended June 6, 1989)

The board shall have exclusive control of the administration of such fund or funds as may come into the possession of the system, provided that all investments shall be investments permissible by law for investment of trust funds (as provided in section 16040 of the California Probate Code) and shall conform to general investment standards approved by the city council. The board shall adopt general investment standards which the city council shall either approve or disapprove. The board shall employ and obtain advice and services from professional financial advisors, expert in their respective fields, such as investment counsel, trust companies or trust departments of banks, in regard to the management and investment of the funds in the system. Nothing contained in this article shall be construed to prevent the board from administering, managing and investing the funds of the system as a single fund. (Amended June 6, 1989)

The board shall use the services of a consulting actuary to advise it on matters relating to funding and administration of the system and to make actuarial valuations.

On or before January 1 of every third year, in accordance with the board's schedule in effect on the effective date of this article as amended, the board shall establish contribution rates for the next succeeding three-year period. Said contribution rates shall be those recommended by the actuary for the system in the actuarial report accepted by the board (except where the board rejects a report) as hereinafter set forth.

The actuary for the system either shall be an enrolled actuary under the Employee Retirement Income Security Act of 1974 ("ERISA") or any succeeding law and a member of the American Academy of Actuaries or shall meet such experience and other requirements as are approximately equivalent to those applicable to an enrolled actuary under ERISA and to a member of the American Academy of Actuaries.

The actuary for the system shall carry out such valuations of the costs of the system as are required to estimate the contribution rates required to fund the system. Such valuation shall be made not less frequently than every three years. The actuary shall present to the board a valuation report covering the findings of each such valuation, which report shall be accepted by the board or rejected as hereinafter provided.

The board may reject a valuation report of the actuary of the system in its sole discretion. In the event that the board should reject a valuation report of the actuary for the system, the board shall forthwith appoint a new actuary for the system. If the new actuary for the system shall be unable to complete his or her report by the date when revised contribution rates are required to become effective or if the board should reject the new actuary's report, then the rejected valuation report by the former actuary for the system shall determine the contribution rates until the board subsequently accepts a valuation report from a new actuary for the system. The board may determine that the contribution rates adopted pursuant to the new actuary's report shall be retroactive to the date when revised contribution rates were required to become effective.

No actuarial method or assumption to be used in any actuarial study of the system shall be adopted by the board unless the actuary retained by the board recommends such method or assumption. No method shall be used in any actuarial valuation of the system unless such method is a widely used, sound, and well-recognized actuarial method which is used to establish the cost of pension plan benefits and expenses.

The actuary for the system shall develop the actuarial assumptions to be used in evaluating the costs of the system. To the extent deemed appropriate by the actuary, actuarial assumptions shall be based on the experience of the system. The actuary shall use his or her best judgment in interpreting prior experience of the system, similar experience elsewhere, trends, and opinions in his or her development of such actuarial assumptions. Each actuarial assumption shall represent as realistic an appraisal of relevant future experience (including expected inflation) at the time the assumption is made, and all assumptions considered together shall be such that their use shall permit the actuary to make an estimate of costs which he or she believes to be a reasonable one. The actuary shall submit in his or her report a full discussion of all assumptions used in the actuarial valuation.

The board shall direct the actuary to determine the amount and character of all unfunded liability of the system using widely used, sound, and well-recognized actuarial methods and shall direct the actuary to determine the contribution rates according to section 385. Neither terminal funding cost method nor the current funding (pay-as-you-go) cost method is an acceptable method, and neither of such methods shall be recommended by the actuary or adopted by the board; provided, however, this section shall not apply to the funding of benefits for service rendered prior to April 1, 1935, or to the funding of benefits provided pursuant to the retirement plans created by former (1976) Charter sections 173, 175, 175.1, 175.13 and to benefits payable to transferred employees as provided in section 374 of this Charter. (Amended June 6, 1989)

It shall be the policy of the board to set rates which shall:

(a) Cause the city to pay the unfunded city costs of the system as of January 1 1977, based upon an actuarial evaluation as of June 30, 1976, over a period ending on June 30, 2007;

(b) Cause the city to amortize any increases or decreases in the estimated city costs of the system which occur after June 30, 1976, over periods of time ending on the latter of June 30, 2007, or ten (10) years after the dates such increases or decreases were incurred;

(c) Cause the city to make such city contributions as may be required to amortize liabilities described in (a) or (b) preceding as a level percentage of total payroll;

(d) Cause the city to begin to make the city contributions described in Subparagraph (a) beginning on January 1, 1983, and to make contributions beginning on January 1, 1977, such that the city contributions for the six (6) succeeding calendar years will be expected to increase each year uniformly as a percentage of total payroll from the amount actually contributed by the city in fiscal year 1976-77 to that estimated as required under Subparagraph (c) for the calendar year following January 1, 1983, and later; and,

(e) Cause the city to comply with any applicable federal law relating to minimum funding of this system, notwithstanding any provision in this section to the contrary.

(Adopted November 2, 1976)

As nearly as practicable, the accounting system for the retirement system shall conform to generally accepted accounting principles. The board shall cause the funds of the retirement system to be accounted for according to membership in, and funds contributed to, each plan in the system. Accumulated contributions of members shall be accounted for according to individual members' accounts. In accounting for contributions under this plan and the "equal shares retirement plan" created by former (1976) Charter section 302, the city's contributions for safety members and for miscellaneous members shall be accounted separately by group. The accounting system shall account separately for accumulated contributions of all retired and deceased members held for payment of annuities to or on account of such members and city contributions held for payment of pensions to or on account of such members. (Amended June 6, 1989)

At least annually, the board shall review the new investment earnings of the system on invested funds and shall determine the annual interest rate which shall be used in determining the amount of interest to be credited to contributions of the city, contributions of members and contributions of retired members. Said interest rate shall bear a reasonable relationship to the net rate of return from investments by the system as determined by the board.

Upon determining the rate of interest to be credited, the board shall periodically cause such interest to be credited to such contributions. Any difference between net investment earnings of the system and the interest credited to contributions shall be credited to such fund or funds of the retirement system as may be determined by the board. (Adopted November 2, 1976)

The Retirement Hearing Commission shall have jurisdiction only to hear appeals as hereinafter described. Any person who has a direct financial interest who is adversely affected by a decision of the retirement system manager with respect to such person's claim for benefits, or claim for a refund pursuant to former (1989) Charter section 436, shall have the right to appeal to the Retirement Hearing Commission.

Prior to the commission acting upon any appeal filed with it, the commission shall refer said appeal to an independent hearing officer. Such hearing officer shall hear the matter and make a recommendation to the commission, which recommendation shall include proposed findings of fact and a proposed decision. The commission, after reviewing the record, the proposed findings of fact and proposed decision, and taking such additional evidence as may be necessary, may adopt, modify or reject the proposed findings of fact and proposed decision.

All hearing officers shall be provided by the Office of Administrative Hearings of the State of California, or its successor in interest; provided, however, that the commission, with the approval of the city council, may prescribe rules for selecting hearing officers other than from the Office of Administrative Hearings.

The cost of securing hearing officers shall be borne by the city.

The city council shall by ordinance prescribe procedures to be followed by the commission in matters relating to its duties. The commission, with the approval of the city council, may contract to obtain such services and advice as are necessary to carry out its duties pursuant to the Charter. (Amended June 6, 1989)

The commission shall consist of the following persons:

(a) The city manager, or designated representative;

(b) The city finance director, or designated representative;

(c) A resident of the city, not a member of the board, not connected with the government of the city; and

(d) Two miscellaneous members of the system.

A majority of the members of the commission shall constitute a quorum. Action by the commission shall require the affirmative vote of three members, except that a lesser number may adjourn from time to time. (Amended June 6, 1989)

(a) Selection. Members of the commission other than the city manager or designated representative and the city finance director or designated representative, shall be selected as follows:

(1) The city resident member of the commission shall be appointed by and serve at the pleasure or the city council; and

(2) Each employee member shall be selected under election procedures established by the city council by and from active miscellaneous members of the system.

(b) Terms. The terms of office of the commission members, other than the city manager or designated representative and the city finance director or designated representative, shall be for fixed terms of four (4) years and until their successors are selected. Provided, however, that the first term of each such member shall be as follows:

(1) The city resident member serving on the commission on the day preceding the effective date of these amendments shall serve as a commission member until the expiration of his or her current four-year term, or until a successor is selected.

(2) The miscellaneous member serving on the commission on the day preceding the effective date of these amendments shall serve as a commission member until December 31, 1993, or until a successor is selected.

(3) So as to stagger the terms of the two miscellaneous members, the first term of the second miscellaneous member shall end December 31, 1991 or until a successor is selected. Thereafter the member selected to serve as the second miscellaneous member shall serve for the four-year fixed term.

(Amended June 6, 1989)

The city manager shall appoint a retirement system manager who shall serve as secretary of the board and secretary of the commission. Subject to the provisions of section 388, the retirement system manager shall have full authority under the Charter and such general ordinances as may be lawfully adopted by the city council to determine when and to what extent members may receive or may continue to receive benefits of any type or kind under the retirement system. All claims for benefits payable by the Sacramento City Employees' Retirement System, and claims for refunds under former (1989) Charter section 436, shall be filed with the retirement system manager. The city council shall by ordinance prescribe procedures to be followed by the retirement system manager in matters relating to his or her duties.

The retirement system manager, with the approval of the city council, may contract to obtain such services and advice as are necessary to carry out his or her duties pursuant to this Charter. (Amended June 6, 1989)

The city attorney shall serve as the legal counsel for the board, the commission and the retirement system. (Adopted November 2, 1976)

All usual, normal and reasonable costs of administering the retirement system, including actuarial fees and costs, shall be borne by the city. When an agreement is entered into by the board with professional financial advisors, such as investment counsel, trust companies, or trust department of banks in regard to the management and investment of the funds in the system, any fee stipulated in such agreement to be paid to such financial advisors shall not be considered a cost of administration but shall be considered as a charge against the assets of the retirement system to be apportioned among the fund or funds of the retirement system as determined by the board. In addition, any other ordinary costs incurred in regard to the management and investment of the funds in the system, including, but not limited to, brokers' fees, attorneys' fees, insurance, taxes, and property management fees, shall not be considered a cost of administration but shall be considered as a charge against the assets of the retirement system to be apportioned among the fund or funds of the retirement system as determined by the board. (Adopted November 2, 1976)

The city council shall enact an ordinance or ordinances prescribing the conditions according to which any and all miscellaneous employees of the city may be covered under the Old Age, Survivors, Disability and Health Insurance provisions of the Social Security Act. The provisions of any ordinance or ordinances applicable to miscellaneous members of the system shall substantially conform to the provisions of former (1976) Charter section 175.12.5 with such modifications as are necessary to make the provisions of said section applicable to miscellaneous members of the "equal shares retirement plan" and the former (1989) Charter Section 399 Plan. (Amended June 6, 1989)

The city council may, subject to the provisions of section 373 of this article, enact ordinances and enter into agreements concerning reciprocity with the retirement systems of other governmental entities.

The ordinance may provide for a modification of rights and benefits of a member of the system because of membership in a reciprocal system similar to and under the same conditions as those provided under the County Employees' Retirement Law of 1937 and the Public Employees' Retirement Law because of membership in two or more retirement systems established by or pursuant to such laws. The ordinance shall be filed with each board administering a reciprocal system and shall become effective upon the adoption of a resolution of such administering board accepting the city system as a reciprocal system. Such modification shall apply only to a member whose termination and entry into employment occurred after such effective date.

As a condition precedent to his or her eligibility to receive reciprocal benefits under this section, the ordinance may require a member of the system to relinquish any benefits to which he or she would be entitled under ordinances enacted pursuant to section 378 of this article. The ordinance shall provide that the provisions of section 378 of this article shall not be applicable to any employee of the city who becomes a member of this system after the effective date of any reciprocity agreement entered into pursuant to former (1976) Charter section 367.

A reciprocal system, for purposes of this section, means a retirement system established under the County Employees' Retirement Law of 1937, the Public Employees' Retirement System, a retirement system of a city whose retirement ordinance contains the provisions authorized by this section, or a retirement system of a city or city and county established by its charter and providing for modification of rights and benefits similar to and under the same conditions as those provided for under this section. (Amended June 6, 1989)

Notwithstanding any provision in this system to the contrary, whenever a benefit payable to the surviving spouse under this systems terminates or is reallocated because or the remarriage of the spouse, the termination or reallocation of the benefit shall be only for the period of remarriage, and in the event that the surviving spouse resumes the status of an unmarried person, the benefit shall be fully reinstated or reallocated, as the case may be, to the surviving spouse for said unmarried periods. (Adopted November 2, 1976)

Notwithstanding the provisions of Section 5105 and 5125 or the Civil Code of the State or California, whenever any payment of benefits or refund is made by the system to or on account of a member, such payment shall fully discharge this system from all adverse claims, thereto unless, before such payment or refund is made, the retirement system manager has received written notice by or on behalf of some other person that such person claims to be entitled to such payment or refund. (Adopted November 2, 1976)

No right of a person to any benefit or refund under this article and no funds of the retirement system shall be subject to execution, garnishment, attachment, or any other process whatsoever, and no such right or funds shall be assignable. (Adopted November 2, 1976)

Subject to the requirements of section 374 of this Charter relating to enactment of ordinances providing for continuance of employee retirement plans, sections 399 through 444 of the Sacramento City Charter are repealed as of the effective date of these amendments. (Amended June 6, 1989)

The city council may at any time provide by ordinance for implementation of any procedure, or for any matter arising due to unforeseen circumstances, or for any remedy necessary to accomplish full transfer in an equitable manner or all active safety employees to PERS, including but not limited to such hearing procedures as may be required by Government Code Section 21026 or any other section of the Government Code, procedures for any determinations required by that code to be made by the city with respect to disability retirement, and any provisions necessary to resolve questions relating to the following categories of persons:

(a) Former SCERS safety members who have left city employment but are covered by reciprocity provisions or agreements.

(b) Former SCERS safety members who have left city employment but who elected deferred retirement and have left their contributions in the system.

(c) Former SCERS safety members who left city employment, were reemployed by the city prior to the effective date of the new contract, again became SCERS safety members, and who have redeposit rights which as of the effective date of the new contract have not been exercised so as to receive service credit for the break in service.

(d) Former SCERS safety members who left city employment and are reemployed after the effective date of the new contract, and who did not elect deferred retirement or leave their contributions in the system.

(e) Former SCERS safety members who retired for disability and who returned to city employment pursuant to former (1989) Charter section 417 as a miscellaneous employee, but who elected to retain safety membership.

In the event that a court of competent jurisdiction determines in a final judgment that all or any provision of this article or any new contract entered into with the Public Employees' Retirement System, or any ordinance enacted pursuant to this article is invalid, the city council shall provide by ordinance for compliance with the terms and conditions of any such court order.

The city council shall provide by ordinance, prior to the effective date of any new contract, for an administrative appeal and remedy procedure to address any claim made by a member of SCERS, any employee, any retiree or any beneficiary that this article or any new contract entered into with the Public Employees' Retirement System, or any ordinance enacted pursuant to this article is invalid for any reason. As adopted, such procedure shall be mandatory, final and binding on all parties thereto, and shall be reviewable only by court proceedings instituted pursuant to Code of Civil Procedure 1094.5. (Amended June 6, 1989)

Any section or part of any section in this Charter, insofar as it should conflict with the sections of this article or with any part thereof, shall be superseded by the contents of said sections. In the event that any word, phrase, clause or section of these sections shall be adjudged unconstitutional, the remainder thereof shall remain in full force and effect. (Amended June 6, 1976)