HomeMy WebLinkAboutAgenda Report - August 15, 2012 C-18AGENDA ITEM C101
'• 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: August 15,2012
SUBMITTED BY: Human Resources Manager
RECOMMENDEDACTION: 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 all employees.
The specific resolution would limit the two-year additional service credit incentive to the following
classifications: Administrative Secretary (Fire), Electrical Technician (EUD), Parks Maintenance Worker
III (PRCS), and Library Services Manager (Library).
The program requiresthat 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
September 19, 2012 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 2013/2014.
FUNDING AVAILABLE: Not applicable.
Attachment
92
Jordan ers, Deputy City Manager Internal Services Director
APPROVED: , i(7AI
'-' Konradt Bartlam, 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 COLA
PRSA 3016, 4016, 5016
Additional Employer
Contributions
Administrative Secretary
Linda Hoover
$ 49,800.81
0.56
Yes
No
$
27,888.45
Electrical Technician
Nestor T
$ 84,793.28
0.47
Yes
No
$
39,852.84
Parks Maintenance Worker III
Dan Tarnasky
$ 46,313.70
0.561
Yes
No
$
25,935.67
Library Services Manager
jAndrea Woodruff
1 $ 78,899.45
1 0.531
Yes I
r -No -Ts
41,816.71
Salary Savings: $ 329,396.85
*PRSA - Post Retirement Survivor Allowance
N:\Administration\Personnel\Cristina's\Estimated buy-out cost2012.x1s
Cost: $ 168,200.79
Estimated Increase in Employer Contribution:
(Based on $20,403,755 annual payroll for Misc. & Fire)
Actual Annual Cost: $
0.00062263
12,498.89
C-�8
TWO YEARS ADDITIONAL SERVICE CREDIT
Section 20903
Estimated Emolover Cost
ATTACHMENTA
cost: $ 192,353.39
Salary Savings: $ 380,341.93
Estimated Increase in Employer Contribution: 0.000712036
*PRSA - Post Retirement Survivor Allowance (Based on $20,403,755 annual payroll for Misc. & Fire)
Actual Annual Cost: $ 14,257.38
N:\Administration\Personnel\Cristina's\Estimated buy-out cost2012.x1s
Name'
Annual
Pay:Rate:.,.;:
Cost
Factolr:
PRSA*No
Yes or No .PRSA,
COLA Additional Employer.
3°/w 4`/g 0 __ dor!#nbutiora w. a.5
Administrative Secretary
Linda Hoover
$ 49,800.81
0.56
Yes
No
$
27,888.45
Electrical Technician
Nestor Ty
84,793.28
0.47
Yes
No
$
39,852.84
Parks Maintenance Worker III
Dan Tarnasky
48,629.39
0.56
Yes
No
$
27,232.46
Parks Maintenance Worker III
Pete Melendez
$ 48,629.39
0.47
Yes
No
$
22,855.81
Library Services Manager
Andrea Woodruff
$ 78,899.45
0.53
Yes
No
$
41,816.71
cost: $ 192,353.39
Salary Savings: $ 380,341.93
Estimated Increase in Employer Contribution: 0.000712036
*PRSA - Post Retirement Survivor Allowance (Based on $20,403,755 annual payroll for Misc. & Fire)
Actual Annual Cost: $ 14,257.38
N:\Administration\Personnel\Cristina's\Estimated buy-out cost2012.x1s