AR 080106 Golden handshake - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF AUGUST 1, 2006 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 — Miscellaneous Member (August 2, 2006— October 31, 2006) DATE: July 20, 2006 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 December 7, 2002, the same contract was also amended for local miscellaneous members to include the retirement benefit of 2.7% at age 55. ANALYSISMISCUSSION: 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: Public Works Crew Leader — Public Works Department The time period during which the eligible members must retire to receive the additional service credit will be from August 16, 200 to November 15, 2006. This item was presented to Council on June 6, 2006; however, the item needed to be presented twice but was not on the agenda for the June 20 meeting. As such, PERS was consulted and the dates for the golden handshake have been revised; the employee has been made aware of this change. 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