HomeMy WebLinkAboutAgenda Report - May 19, 1993 (59)d� cr
CITY OF LODI
COUNCIL COMMUNICATI ;l`!
AGENDA TITLE: Preservation of Retirement Benefits
MEETING DATE: May 19, 1993
PREPARED BY: Joanne M. Narloch, Personnel Director
RECOMMENDED ACTION: That the City Council approve the Resolution of Intention
to adopt the Preservation of Retirement Benet is for employees affected by a temporary reduction
in salary or reduced work hours.
BACKGROUND INFORMATION: The condition of the economy has led many agencies to
search for ways to cope with shrinking budgets. One alternative the City of Lodi may wish to
consider is a temporary reduction of the salary or work hours of some or all of its employees.
If the City chose this alternative it would not only result in lesser earnings for the employees,
but it could also have the unintentional disadvantage of reducing their retirement benefits.
Normal payroll reporting for an employee following a reduction in his/her salary or earnings
would result in either a lower compensation earnable or reduced service credit. By adopting
the Preservation of Retirement Benefits, the City could maintain employees' payrates and
earnings at the same amount and in the same way as they were reported prior to the reductions.
This procedure applies only to employees who suffer a loss of retirement benefits while
continuing to work in the same position occupied prior to taking a temporary reduction in salary
or working hours. It does not apply to demotions in lieu of layoff, transfer to part time
positions, or any other personnel action where it would be appropriate that there be a salary
change or a reduction in service credit.
FUNDING: Currently budgeted
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oannc° M. NarIocIt
Personnel Director
APPROVED—-"I6te'� `4 - L
THOMAS A. PETERSON
City Manager
CC -1
RESOLUTION NO. 93-64
RESOLUTION OF INTENTION
WHEREAS, the City of Lodi, hereinafter designated as
"contracting agency", has been forced to examine various budget
reduction options because of a fiscal emergency resulting from current
economic conditions; and
WHMUcAS, one of th, .,)tions the contracting agency has found it
necessary to adopt is a temporary reduction in the compensation of its
employees; and
WHEREAS, a reduction in ccvnpensa*ion -T. have an adverse effect
on the retirement benefits oZ the emp';yees; ar-o
WHEREAS, the Legislature has enacted Senate Bill 1285 (Chapte--
448, Statu*es of 1992) which added 5e_iun 20499.s to `he Government
Code; and
iIEREAS, the provisions of Section_ 20499.5 will not apply to any
contracting ag rcy unless and until its governing be= -y adopts a
resol �t� gin, � ] R fore, provid_u by the: Board of Adnirnistration of the
Lmpl-1jses Retirement System, to be subject to it; whereas, a
copy c the resolution must r -e filed with the Board for the purpose of
approval prior to implementation and must be accompanied by copies of
all supporting documents including the resolution or ordinance which
authorized the reduction and pertinent language in the contracts of
employment;
NOW, THEREFORE, BE IT RESOLVED that it is the intention of the
City Council of the contracting agency that the retirement benefits of
its employees be preserved irrespective of any temporary reduction in
their compensation made necessary by the contracting agency's current
fiscal emergency; and
BE IT FURTHER RESOLVED that a copy of this resolution be filed
with the Board of Administration of the Public Employees, Retirement
System as notice of the intention of the contracting agency to report
payroll for those employees whose retirement benefits would be
adversely affected by a temporary reduction in their compensation, in
the manner prescribed by the Board and subject to audit by the Board
pursuant to the authority of Section 20499.5. This Resolution will be
effective from May 19, 1993 to January 1, 1995 at which time any
special reporting pursuant to this Resolution for any emplo,•ees of the
contracting agency, must cease.
Dated: May 19, 1993
-------------------
RES9364/TXTA.01V
RFSOLLTTION 93-64
May 19, 1993
Page Two
I hereby certify that Resolution No. 93-64 was passed and adopted
by the Lodi City Council in a regular meeting held May 19, 1993 by the
following vote:
Ayes: Council Members -
Hoes: Council Members -
Absent: Council Members -
Jennifer M. Perrin
City Clerk
93-64
RSS9364/TXTA.OIV
RESOLUTION NO. 93-64
RESOLUTION OF INTENTION
WHEREAS, the City of Lodi, hereinafter designated as
"contracting agency", has been forced to examine various budget
reduction options because of a fiscal emergency resulting from current
economic conditions; and
WHEREAS, one of the options the contracting agency has found it
necessary to adopt is a temporary reduction in the compensation of its
employees; and
WHEREAS, a reduction in compensation can have an adverse effect
on the retirement benefits of the employees; and
WHEREAS, the Legislature has enacted Senate Bill 1285 (Chapter
448, Statutes of. 1992) which added Section 20499.5 to the Government
Code; and
WHEREAS, the provisions of Section 20499.5 will not apply to any
contracting agency unless and until its governing body adopts a
resolution, in a form provided by the Board of Administration of the
Public Employees' Retirement System, to be subject to it; whereas, a
copy of the resolution must be filed with the Board for the purpose of
approval prior to implementation and must be accompanied by copies of
all supporting documents including the resolution or ordinance which
authorized the reduction and pertinent language in the contracts of
employment;
NOW, THEREFORE, BE IT RESOLVED that it is the intention -)f the
City Council of the contracting agency that the retirement benefits of
its employees be preserved irrespective of any temporary reduction in
their compensation made necessary by the contracting agency's current
fiscal emergency; and
BE IT FURTHER RESOLVED that a copy of this resolution be filed
with the Board of Administration of the Public Employees' Retirement
System as notice of the intention of the contracting agency to report
payroll for those employees whose retirement benefits would be
adversely affected by a temporary reduction in their compensation, in
the manner prescribed by the Board and subject to audit by the Board
pursuant to the authority of Section 20499.5. This Resolution will be
effective from May 19, 1993 to January 1, 1995 at which time any
special reporting pursuant to this Resolution for any employees of the
contracting agency, must cease.
Dated: May 19, 1993
R5S9364/TxTA.02J
RESOLUTION 93-6,
May 19, 1993
Page Two
I hereby certify that Resolution No. 93-64 was passed and adopted
by the Lodi City Council in a regular meeting held May 19, 1993 by the
following vote:
Ayes: Council Members - Davenport, Mann, Sieglock, Snider,
and Pennino (Mayor)
Noes: Council Members - None
Absent: Council Members - None
Vic
ennifer M. Perrin yf
City Clerk
RES9364/TXTA.02J