19921207 CC SR PERS Amendment 2 Years Additional Service Credit s
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MEMORANDUM IL RANCHO PALOS VERDES
TO. HONORABLE MAYOR & MEMBERS OF -CITY . i9UNCIL
FROM:
ASSISTANT CITY MANAGER
DATE. DECEMBER 7, 1992
SUBJECT' PERS AMENDMENT - 2 YEARSADDITIONAL SERVICE CREDIT
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RECOMMENDATION:
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1. Adopt Resolution of Intention.. q�. 46
Date Gay C e C)
2. Introduce Ordinance Noeramending
S the contract between
the City of Rancho Palos des and the Board of Administration
of the California Public Employees' Retirement System (PERS) to
authorize the Two-Years Additional Service Credit.
BACKGROUND:
Government Code Section 20818 allows the Public Employees'
Retirement System to provide a Two-Years Additional Service
Credit amendment to participating PERS agencies. The contract
amendment would provide potential retirees with an additional
service credit if they retire during a window period of ninety
(90) days in a budget year affected by layoffs or reductions in
force. The additional service credit would enable an employee to
retire earlier than anticipated, thereby creating a reduction in
force without layoff and achieve some salary savings over time.
In order to be eligible for retirement under the additional
service credit provisions, a person must have at least five (5)
years of service credit and be at least fifty (50) years old.
ANALYSIS:
To meet the criteria of Government Code Section authorizing the
early retirement amendment, a permanent vacancy must be
maintained by the City as a result of a person retiring in the
designated window period, although the permanent vacancy need not
be the position from which the person retires. The permanent
vacancy could be any position within the same job series as long
as it is eliminated from the budget during the fiscal year in
which the amendment is adopted. In the City's case, the Two-
Years Service Credit could be made available to employees within
the staff assistant (clerical) series, since a Staff Assistant I
position in the Environmental Services Department has been
eliminated during this fiscal year due to the financial condition
of the City.
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Should the Council adopt the Resolution of Intention and
introduce the attached ordinance this evening, the designated
ninety (90) day window of opportunity for eligible employees to
take advantage of the Two-Years Additional Service Credit would
be February 12, 1993 through May 12, 1993 .
F I SCAL IMPACT:
The Government Code mandates that the cost implications of the
proposed contract amendment be made public for all employees who
are eligible to retire under the provision, regardless of whether
or not they retire during the designated window period. Since
the contract amendment provisions are limited to persons in the
staff assistant (clerical) series, a total of four (4) employees
are eligible for a total cost of $49,300. However, only one (1)
employee has expressed an interest in the early retirement
opportunity. Therefore, it is anticipated that the total cost to
the City would be approximately $18,500.
The PERS Board of Administration does not allow costs associated
with the Two-Years Additional Service Credit to be charged to
surplus accounts. Therefore, the $18,500 would have to be
authorized by Council to come from the contingency fund.
Respectfully Submitted,
fiA,)&tjp,_ Up . 4L-7 -0
Pamela Weaver Antil
Assistant City Manager
Rev-iew :
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Paul D. Buii-eir
City Manager
Attachments: Resolution of Intention
Ordinance No.
Exhibit "A"
PA/8:(PERSOU LII):PERSZl18M