HomeMy WebLinkAboutAgenda Report - April 20, 2016 I-03CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA ITEM
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AGENDA TITLE: Consider Notice of Cost to Grant Two Years Additional Service Credit Under
Government Code Section 20903
MEETING DATE: April 20, 2016
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 PERS 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
classification: Recreation Superintendent (Parks, Recreation, and Cultural Services).
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
4, 2016 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 5 years and included in the
City's PERS employer contribution rate beginning in FY 2019/2020.
FUNDING AVAILABLE: Not applicable.
Attachment
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APPROVED:
Adele Post, Human Resources Manager
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Jordan yers, Deputy nag
c wabau'T ' Manager
TWO YEARS ADDITIONAL SERVICE CREDIT
Section 20903
Estimated Employer Cost
ATTACHMENT A
Salary Savings:
*PRSA - Post Retirement Survivor Allowance
N:Wdministration\Personnel\Cristina's\Estimated buy-out cost 2016_clean.xls
Cost: $
$ 75,048.77
Estimated Increase in Employer Contribution:
(Based on $28,938,940 annual payroll for Misc. & Fire)
46, 530.24
0.000362134
Actual Annual Cost: $ 10,452.61
x 5 years $ 52,263.03
Ret.
Annual
Cost
PRSA*
No
COLA
Additional Employer
Classification
Name
Age
Formula
Pay Rate
Factor
Yes or No
PRSA
3%, 4%, 5%
Contributions
Recreation Superintendent
Michael Reese
63
2 @ 55
$ 75,048.77
0.62
Yes
No
$ 46,530.24
Salary Savings:
*PRSA - Post Retirement Survivor Allowance
N:Wdministration\Personnel\Cristina's\Estimated buy-out cost 2016_clean.xls
Cost: $
$ 75,048.77
Estimated Increase in Employer Contribution:
(Based on $28,938,940 annual payroll for Misc. & Fire)
46, 530.24
0.000362134
Actual Annual Cost: $ 10,452.61
x 5 years $ 52,263.03