2002 AGN AUG 20 I09 - Laserfiche WebLink

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Item #9 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF August 20, 2002 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Teresa S. Delgado, Human Resources Manager SUBJECT: Approval of the Amendment to the Public Employees' Retirement System Contract to Add Two Years Addition Service Credit (Golden Handshake) DATE: August 12, 2002 BACKGROUND: The City of Colton previously amended its contract with the California Public Employees' Retirement System (CalPERS) to allow two years of additional service credit for local miscellaneous members only. Currently, the retirement benefits are limited to 2% at age 55 for the City's miscellaneous members. DISCUSSION/ANALYSIS: On August 6', the City Council established a window of time from August 21, 2002 to November 19, 2002, for eligible retirees to apply for the two years' additional service credit, pursuant to Section 20903 of California Public Employees' Retirement System. State cutbacks have profoundly affected the Redevelopment Agency's budget so that it must now curtail its manner of performing service. To that end, the Redevelopment Agency is proposing to eliminate its Senior Accountant position and this position shall remain permanently unfilled thereby resulting in an overall reduction in the work force of this department. FINANCIAL IMPACT: It has been calculated that the two years additional service credit for the Senior Accountant position will cost $21,247.78. In addition, there is a $10.00 valuation charge for each member who retires during the designed period and receives the additional service credit. As previously reported, the City is super -funded and this cost will be deducted from the City's account; therefore, there will be no budgetary impact. It is anticipated that the Redevelopment Agency will realize savings in the amount of $68,623, representing the Senior Accountant's annual salary and salary -related benefits.