(5)AR 040709 Golden Handshake - Laserfiche WebLink

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ENVIRONMENTAL IMPACT: This item does not carry environmental impact. FISCAL IMPACT: At the March 17, 2009 Council meeting, the cost of providing the two years additional service credit was provided. The cost is calculated based on the individual members' annual reportable compensation, the cost factor, and whether the agency's contract provides the post-retirement survivor allowance (applies to Safety Members only) and the cost -of -living allowance. It has been calculated that the two years additional service credit for the golden handshake -eligible positions listed above will cost up to $259,439; this is billed to the city over a period of time starting with the 2012-13 fiscal year. In addition, there is a $10 valuation charge for any member who will be retiring during the designated period and who will receive the additional service credit. Government Code Section 7507 requires that the costs to provide this benefit be made public at a public meeting at least two weeks prior to the adoption of the resolution. This one-time cost of up to $259,439 will be factored into Colton's PERS rates beginning FY 2012- 2013 and will be paid by the respective departments whose positions are accepting the Golden Handshake. The early retirement will result in salary savings of approximately $497,230 in the upcoming fiscal year and some savings being realized this fiscal year given that all employees will retire no later than April 9, 2009 (PERS requires the window period be open for a minimum of 90 days). These savings reflect only the salary and benefit costs and do not factor in additional compensation such as certification or education pay. The $259,439 has no impact to cash balances during the current fiscal year. RECOMMENDATION: It is respectfully recommended that the Honorable Mayor and City Council hereby approve and adopt the proposed Resolution formally establishing pursuant to Government Code Section 20903, a window period from April 8, 2009 to July 9, 2009. City Attorney: =Y --_ iL :( --j Finance Director: OTHER: