HomeMy WebLinkAboutAgenda Report - July 15, 2009 K-03AGENDA ITEM 14
CITY OF LODI
COUNCIL COMMUNICATION
• TM
AGENDATITLE: Notice of Cost to Grant Two Years Service Credit Under Government Code
Section 20903.
MEETING DATE: July 15,2009
SUBMITTED BY: Human Resources Manager
RECOMMENDED ACTION: Consider recommendations relating to notice of cost to grant two
years additional service credit for certain classifications of
employees under Government Code Section 20903 and
Certification of Compliance with Government Code Section 7507.
BACKGROUND INFORMATION: The CalPERS two year additional service credit program, as
established under California Government Code Section 20903, allows the City (as part of a budget
reduction process) to offer a retirement incentive of two years service credit to employees. The current
PERS contract allows the City --with Council approval --to offer the program to Miscellaneous and Fire
(sworn) employees.
This specific Resolution limits the two year additional service credit incentive to the current Street
Maintenance Worker III classification. Previously, when the original additional service credit program
was presented to the Council, Street Maintenance Worker III's were excluded from eligibility. As the
budget negotiations unfolded, lay-offs were proposed for the Street Maintenance Worker Ill's yet they
had not had the opportunity to pursue early retirement in lieu of lay-offs.
The program requires that participating employees be at least fifty years of age, have five years of
service credit with PERS, and retire within a specified period of time as identified by the City. The
intended effect of offering this incentive is an overall reduction in the workforce.
Government Code Section 7507 requires that the costs to provide this benefit as stated in Attachment A
be made pubic at a public meeting at least two weeks prior to the adoption of the Resolution. This
communication serves as that public notice.
As stated earlier, the cost of the program must be made public for a minimum of two weeks. At the
August 5, 2009 Council meeting, staff will present the resolution adopting the two years service credit
purchase for those employees who will be offered this retirement option.
FISCAL IMPACT: The cost of this benefit will be amortized over twenty years and included in the
City's CalPERS employer contribution rate beginning in FY 2011-2012.
FUNDING AVAILABLE: Not applicable.
R tfully submitted,
I
Dean Gua o, Human Resources Manager
APPROVED:
Blair Ki, ty Manager
EXHIBIT A
Estimated Employer Cost
Classification
Name
Annual
Pay Rate
Cost
Factor
PRSA*
Yes or No
No
PRSA
COLA
3%,4%,5%
Estimated Employer
Contributions
Street Maintenance Worker III
Steven Hale
$ 51,057.68
0.56
Yes
No
$ 28,592.30
Street Maintenance Worker III
Randall McVinnie
$ 51,057.68
0.56
Yes
No
$ 28,592.30
Street Maintenance Worker III
I George Bara'as
1 $ 51,057.68
1 0.561
Yes
I
No
1 $ 28,592.30
Street Maintenance Worker III
I Curtis Goke
$ 51,057.68
1 0.471
Yes
I
No
1 $ 23,997.11
Cost: $ 109,774.01
Annual Salary Savings $ 204,230.72
(not including benefits) Estimated Increase in Employer Contribution:
(Based on $18,200,077 annual payroll for Misc.)
0.000455552
Actual Annual Cost: $ 8,198.05