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CITY OF COLTON <br />AGENDA REPORT <br />For City Council Meeting of April 3, 2001 <br />TO: Honorable Mayor Pro Tempore and City Council <br />rok <br />APPROVAL: Henry Garcia, City Manag% <br />FROM: Dennis Morris, Human Resource Director 1qb%\- <br />SUBJECT: Approval of the Amendment to the Public Employees' Retirement System Contract to <br />Add Two Years Additional Service Credit. <br />DATE: March 26, 2001 <br />BACKGROUND: Under the City's current Ca1PERS retirement contract, retirement benefits are limited to <br />2% at age 55 for the City's miscellaneous members. In order to provide for Two Years Additional Service <br />Credit, the Ca1PERS contract mush be amended. <br />DISCUSSION/ANALYSIS: State law provides a basic framework for the CAPERS retirement plan, and <br />some benefits are optional for local agencies, at an additional cost. Section 20903 of California Public <br />Employees' Retirement System provides that a city may purchase Two Years Additional Service Credit for <br />local miscellaneous members due to impending mandatory transfer, demotion or layoff, or because of an <br />impending curtailment of, or change in the manner of performing service. In order to be eligible for this the <br />City has found that the best interests of the agency would be served by granting such additional service credit. <br />This request is being made based on eliminating the Director of Public Works position. The time period <br />during which the eligible member must retire to receive the additional service credit will be from June 6, 2001 <br />to September 6, 2001. <br />FINANCIAL IMPACT: $67,805 will be paid out of the Public Works Department's 00/01 and 01/02 fiscal <br />budget using salary savings. <br />ENVIRONMENTAL IMPACT: None <br />LEGAL REVIEW: <br />-SRe Ad <br />City Attor y <br />RECOMMENDATION: Staff recommends that Council adopt the attached Resolution of Intention to <br />approve an amendment to the contract between the Board of Administration of the Public Employees' <br />Retirement System and the City Council; and approve first reading of the attached Ordinance authorizing an <br />amendment to the contract between the City Council and the Board of Administration of the Public <br />Employees' Retirement System. <br />ABED BY: Dennis Morris, Human Resource Director <br />Resolution of Intention <br />Ordinance <br />Agenda pers golden handshake 040301.doc <br />Iters #1__ <br />