19930111 CC SR PERS Amendment 2 Years Additional Service Credit AZ°16) ( P
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MEMORANDUM RANCHO PALOS VERDES
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HONORABLE MAYOR & MEMBERSTO: ii'''.Tt . C L
FROM:
ASSISTANT CITY MANAGER
JANU RY 11, 1993
DATE:
SUBJECT:
PERS AMENDMENT - 2 YEARS ADDITIONAL SERV
RECO A PION:Adopt Ordinance No. 2 8 3 amendingthe co- rac ,- tween the C' t `of
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Rancho Palos Verdes 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.
Should the Council adopt the Ordinance No. 283 this evening, the
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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.
FISCAL IMPACT:
It is anticipated that only one (1) employee will retire under
the amendment provisions. 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,
:94CLO
Pamela Weaver Antil
Assistant City Manager
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. Paul D. Bussey
City Manager
PA/PSRS3.lei