HomeMy WebLinkAboutAgenda Report - December 7, 2011 C-044 AGENDA ITEM C 40
'- 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: December T2 011
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 all employees.
The specific resolution would limit the two-year additional service credit incentive to the following
classifications: Construction/Maintenance Supervisor, Electric Apparatus Mechanic, Distribution Planning
Supervisor, Program Coordinator, Buyer, Fire Captain, Fire Engineer, Street Maintenance Worker III and
WaterMastewater Supervisor.
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
December 21, 2011 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.
1
Deana Gualco, Humour kesources Manager
Jor an Ayers, Deputy City nager/Internal Services Director
APPROVED:
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
PRSA
COLA
3016, 4016, 5016
Additional Employer
Contributions
Buyer
Randolph Lipelt
$
57,468.32
0.47
Yes
No
$
27,010.11
Construction/Maintenance Supervisor
Barry Fisher
$
108,451.20
0.53
Yes
No
$
57,479.14
Distribution Planning Supervisor
Edward Fitzpatrick
$
108,451.20
0.56
Yes
No
$
60,732.67
Electric Apparatus Mechanic
Lance Mauck
$
85,739.68
0.56
Yes
No
$
48,014.22
Fire Captain
William Broderick
$
89,013.75
0.87
No
0.95
No
$
73,569.86
Fire Captain
Joseph Hansen
$
89,013.75
0.87
No
0.95
No
$
73,569.86
Fire Captain
Timothy Thalken
$
89,013.75
0.87
No
0.95
No
$
73,569.86
Fire Captain
Pete Iturraran
$
89,013.75
0.87
No
0.95
No
$
73,569.86
Fire En ineer
John Heinrich
$
76,893.45
0.87
No
0.95
No
$
63,552.44
Program Coordinator
Diane Amaral
$
43,748.22
0.47
Yes
No
$
20,561.66
Street Maintenance Worker III
George Bara'as
$
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
Richard Morgan
$
51,057.68
0.47
Yes
No
$
23,997.11
Street Maintenance Worker III
Jose Vargas
$
51,057.68
0.47
Yes
No
$
23,997.11
Water/Wastewater Supervisor
Christopher Knoll
$
69,589.61
0.56
Yes
No
$
38,970.18
Water/Wastewater Supervisor
Kelly Powers
$
69,589.61
0.47
Yes
No
$
32,707.12
Water/Wastewater Supervisor
Ronald Stawski
$
69,589.61
0.56
Yes
No
$
38,970.18
Water/Wastewater Supervisor
Richard Lenfesty
$
69,589.61
0.47
Yes
No
$
32,707.12
Salary Savings: $ 1,388,985.84
*PRSA - Post Retirement Survivor Allowance
N:\Administration\Personnel\Cristina's\Estimated buy-out cost2011-12.x1s
Cost: $ 852,870.23
Estimated Increase in Employer Contribution:
(Based on $20,403,755 annual payroll for Misc. & Fire)
Actual Annual Cost: $
0.003157075
60,031.05