HomeMy WebLinkAboutAgenda Report - May 5, 2010 J-02AGENDA ITEM :Y40 70000
CITY OF LODI
COUNCIL COMMUNICATION
• TM
AGENDATITLE: Consider Notice of Cost to Grant Two Years Additional Service Credit Under
Government Code Section 20903.
MEETING DATE: May 5,2010
SUBMITTED BY: Human Resources Manager
RECOMMENDED ACTION: Consider notice of cost to grant two years additional service credit
Government Code Section 20903.
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.
The specific resolution would limit the two-year additional service credit incentive to the current Street
Maintenance Worker II, Park MaintenanceWorker II, and Fire Captain classifications.
The program requires that participating employees be at least 50 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 public 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 May
19, 2010 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 20 years and included in the City's
CalPERS employer contribution rate beginning in FY 2012/2013.
FUNDING AVAILABLE: Not applicable.
Respectfullysubmitted,
N,- -- L-1."
Dean Gualco, man Resources Manager
APPROVED:
Blair City Manager
TWO YEARS ADDITIONAL SERVICE CREDIT
Section 20903
Estimated Employer Cost
ATTACHMENT A
Classification
Name
Annual
Pay Rate
Cost
Factor
PRSA*
Yes or No
No
PRSA
COLA
3%,4%,5%
Additional Employer
Contributions
Streets Maintenance Worker II
Daniel Guerrero
$
46,411.48
0.56
Yes
No
$
25,990.43
Streets Maintenance Worker 11
Dana Watt
$
46,411.48
0.47
Yes
No
$
21,813.40
Park Maintenance Worker II
Jorge Estrella
$
44,207.26
0.53
Yes
No
$
23,429.85
Park Maintenance Worker II
Antonio Gonzalez
$
44,207.26
0.57
Yes
No
$
25,198.14
Fire Captain
Pete Iturraran
$
86,842.68
0.87
No
0.95
No
$
71,775.48
Fire Captain
Rick Gerlack
$
86,842.68
0.87
No
0.95
No
$
71,775.48
Fire Captain
Timothy Thalken
$
86,842.68
0.871
No
0.95
No
$
71,775.48
Fire Captain
Brian Jun eblut
$
86,842.68
0.871
No
0.95
No
$
71,775.48
Salary Savings: $ 528,608.20
Estimated Increase in Employer Contribution: 0.001267345
(Based on $22,857,080 annual payroll for Misc. & Fire)
Actual Annual Cost: $ 28,297.87
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