2004 AGN APR 20 I11 - Laserfiche WebLink

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Item #11 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF APRIL 20, 2004 TO: Honorable Mayor and City Council FROM: Anthony Arroyo, Administrative Analyst II 01 SUBJECT: Costs Related to Retirement Opportunity and Establishing Period of Time - Golden Handshake - Miscellaneous Member (May 5, 2004- August 5, 2004) DATE: April 12, 2004 BACKGROUND: Effective June 6, 2001, the City's contract with the California Public Employees' Retirement System (Ca1PERS) was amended to allow two years of additional service credit (Golden Handshake) to local miscellaneous members only. Effective December 7, 2002, the same contract was also amended for local miscellaneous members to include the retirement benefit of 2.7 % at age 55. ANALYSIS/DISCUSSION: In continuing the restructure of the City's workforce, City Council directed City Staff to offer additional service credit, better known as the Golden Handshake, to eligible employees, specifically, Miscellaneous Members, pursuant to Government Code Section 20903 and 7507, as follows: MISCELLANEOUS MEMBER: Utilities Director - Electric Department The time period during which the eligible members must retire to receive the additional service credit will be from May 5, 2004 to August 5, 2004. ENVIRONMENTAL IMPACT: This item does not carry environmental impact. FISCAL IMPACT: The cost of providing the two years additional service credit is calculated based on the individual member's 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 one (1) position listed above will cost $75,251.29 for the Miscellaneous Member. In addition, there is a $10 valuation charge for the 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.