(5)AR 040709 Golden Handshake - Laserfiche WebLink

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ITEM #5 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF APRIL 7, 2009 TO: HONORABLE MAYOR MEMBERS OF THE CITY COUNCIL FROM: ANTHONY ARROYO, HUMAN RESOURCES DIRECTOR SUBJECT: Establishing Second Period of Time — Golden Handshake — Miscellaneous Members (April 8, 2009 — July 9, 2009) DATE: March 25, 2009 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 October 28, 2002, the same contract was also amended for local safety members to include the retirement benefit of 3% @ 50. On December 7, 2002, the PERS contract was amended for local miscellaneous members to include the retirement benefit of 2.7% @ 55. On March 17, 2009, the cost of a Golden Handshake was presented to the Honorable Mayor and City Council. The April 8, 2009 to July 9, 2009 window period applies to those employees retiring with the Golden Handshake during the aforementioned dates. This is a second widow period being presented by Human Resources to the Honorable Mayor and Council for those employees who were interested in the Golden Handshake but notified the City after the first window period opened. ANALYSIS/DISCUSSION: In continuing the restructure of the City's workforce in relation to the economic situation currently at hand, the City Manager directed staff to reduce their respective budgets by a certain dollar amount. One method to accomplish such reductions is to offer additional service credit to all eligible employees. A Golden Handshake offers an employee who is eligible (i.e., at least 50 years of age and five years with PERS) and is considering retiring, two additional years of service credit. For example, an employee with 20 years of PERS service will be credited with a total of 22 years of credit. Pursuant to Government Code Section 20903 and 7507, the Golden Handshake is for eligible employees, whose classifications are noted below: MISCELLANEOUS MEMBER Community Development Director Planning Manager Associate Library Manager Equipment Maintenance Manager The time period during which the eligible members must retire to receive the additional service credit will be from April 8, 2009 to July 9. 2009.