2004 AGN MAY 04 I09 - Laserfiche WebLink

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Item #9 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF May 4, 2004 TO: Honorable Mayor and City Council FROM: Anthony Arroyo, Administrative Analyst II �-`v/ SUBJECT: Approve and Adopt Proposed Resolutions Formally Establishing Another Window Period for the Golden Handshake for a Miscellaneous Member (May 5, 2004 - August 5, 2004) DATE: April 21, 2004 BACKGROUND: Effective June 6, 2001, the City's contract with the California Public Employees' Retirement System (CalPERS) 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 Pursuant to applicable law, on April 20, 2004, the fiscal impact was announced as well as the tentative dates establishing the window period. The time period during which the eligible member 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