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CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of <br />August 6, 1991 <br />TO: Honorable Mayor and City Council <br />FROM: Leslie Keane Stratton, City Manager <br />SUBJECT: Consider Rescinding Resolution <br />No. R-118-89 Authorizing City Manager <br />To Modify Methods Of Compensation For <br />Retiring Employees <br />BACKGROUND• <br />Date: 8/1/91 <br />On September 5, 1989, Council adopted a resolution (R-118-89) which <br />authorized the City Manager to convert benefit premiums to base salary in <br />instances where employees give notice of their intention to retire within <br />the following twelve (12) months. The provisions of the resolution are <br />entirely voluntary and may be executed only at the employee's request. <br />The resolution was adopted after discussion with representatives of the <br />local Public Employees Retirement System (PERS) office and review of <br />similar programs in other San Bernardino County cities. <br />During the last two years, the City has had a number of employees who <br />have retired pursuant to the conditions of this resolution and three who <br />are currently in the conversion process. We have recently been informed, <br />however, that PERS is attempting to invalidate benefit conversions <br />programs. <br />DISCUSSION• <br />Employees who elect to utilize the provisions authorized by R-118-89 do <br />so to increase their retirement allotment. If PERS does not honor <br />conversion programs, there will be no corresponding increase in this <br />benefit, and participating employees will have paid income tax on a <br />traditionally non-taxable portion of their compensation package. We are <br />notifying all retired Colton employees who elected this alternative that <br />they may need to make an appeal directly to PERS regarding the amount of <br />their retirement benefit. It is our understanding that there are <br />numerous cities in California who have programs similar to Colton's whose <br />retired employees will also appeal the PERS determination. <br />Until this matter <br />Best & Krieger) <br />resolution. <br />Attachments: <br />Page t of __2 <br />is resolved, the City's special legal counsel (Best, <br />has recommended that we rescind our conversion <br />CENTRAL RECORDS Item No. -7 <br />BLE NO.....�r. ,��.......r�^t.�°l� <br />