(6)AR 030309 Golden Handshake - Laserfiche WebLink

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ITEM #6 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF MARCH 3, 2009 TO: HONORABLE MAYOR MEMBERS OF THE CITY COUNCIL FROM: ANTHONY ARROYO, HUMAN RESOURCES DIRECTOR SUBJECT: Costs Related to Retirement Opportunity and Establishing Period of Time — Golden Handshake — Safety and Miscellaneous Members (March 18, 2009 — June 30, 2009) DATE: February 18, 2009 BACKGROUND: Effective June 6, 2001, the City's contract with the California Public Employees' Retirement System (CaIPERS) was amended to allow two years of additional service credit (Golden Handshake) to local miscellaneous members only. Effective October 28, 2002, the same contract was also amended for local safety members to include the retirement benefit of 3% @ 50. On December 7, 2002, the PERS contract was amended for local miscellaneous members to include the retirement benefit of 2.7% @ 55. ANALYSIS/DISCUSSION: In continuing the restructure of the City's workforce in relation to the economic situation currently at hand, the City Manager directed staff to reduce their respective budgets by a certain dollar amount. One method to accomplish such reductions is to offer additional service credit to all eligible employees. A Golden Handshake offers an employee who is eligible (i.e., at least 50 years of age and five years with PERS) and is considering retiring, two additional years of service credit. For example, an employee with 20 years of PERS service will be credited with a total of 22 years of credit. Pursuant to Government Code Section 20903 and 7507, the Golden Handshake is for eligible employees, whose classifications are noted below (at least one employee in each classification will retire with a Golden Handshake): SAFETY MEMBER: Police Detective/Corporal Police Officer Fire Engineer Fire Captain MISC. MEMBER Maintenance Worker III Equipment Operator II Family Services Supervisor Library Clerk II Building Inspector II The time period during which the eligible. members must retire to receive the additional service credit will be from March 18, 2009 to June 30, 2009. PERS requires the City to first announce the `costs of the Golden Handshake and allow 2 weeks to pass before the window period is open. At the March 17, 2009 Council meeting, staff will present to the Honorable Mayor and City Council the window period; it is noted in this section for information purposes only.