2002 AGN AUG 06 I15 - Laserfiche WebLink

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Item #15 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF AUGUST 6, 2002 TO: HON. MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TERESA S. DELGADO, HUMAN RESOURCES MANAGER It SUBJECT: COSTS RELATED TO RETIREMENT OPPORTUNITY AND ESTABLISHING PERIOD OF TIME — GOLDEN HANDSHAKE DATE: JULY 23, 2002 BACKGROUND: Effective June 6, 2001, the City of Colton amended its contract with the California Public Employees' Retirement System (CaIPERS) to allow two years of additional service credit for local miscellaneous members only. Also, under the same contract, the retirement benefits are limited to 2% at age 55 for the City's miscellaneous members. ANALYSIS/DISCUSSION: The Redevelopment Agency has suffered severe financial impacts as a result of cut-backs in the State budget. After Closed Session discussions regarding the severity of layoffs and curtailment in its manner of performing service, City Council directed City Staff to offer additional service credit to eligible employees as provided under Government Code section 20903. At this time, the request is made to eliminate the Senior Accountant position in the Redevelopment Agency. The time period during which the eligible member must retire to receive the additional service credit will be from August 21, 2002 to November 19, 2002. ENVIRONMENTAL IMPACT: This item does not carry any environmental impact. FISCAL IMPACT: The cost of providing the two years additional service credit is calculated based on the member's annual reportable compensation, the cost factor, and whether the agency's contract provides the post-retirement survivor allowance and the cost -of -living allowance. It has been calculated that the two years additional service credit for the subject position will cost $21,247.78. In addition, there is a $10.00 valuation charge for each member who retires during the designated period and receives 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.