TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Lisa Jenkins, Human Resources Director
SUBJECT:Title
Consideration of a Resolution of Intention and Introduction of an Ordinance to Amend the City's Contract with CalPERS to Offer Two Years Additional Service Credit ("Golden Handshake") as Part of an Early Retirement and Separation Incentive Program for City Employees (Human Resources Director Jenkins).
a) ADOPT RESOLUTION NO. 20-0135
b) INTRODUCE ORDINANCE NO. 20-0023
c) AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE RELATED DOCUMENTS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: 1) Adopt the resolution of intention to amend the City's contract with the California Public Employees Retirement System (CalPERS); 2) Introduce the ordinance necessary to move forward with initiating the contract amendment process with CalPERS to offer the Two Years Additional Service Credit (Government Code Section 20903) to eligible employees; and 3) Authorize the Mayor and the City Clerk to execute the documents necessary to move forward with the contract amendment and early retirement window.
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FISCAL IMPLICATIONS:
The one-time costs and ongoing savings/costs of offering an early retirement option will depend upon how many employees opt in to the program, and how the City determines it will provide the services moving forward. The potential fiscal implications of offering the early retirement incentive, as described by CalPERS' actuaries, are included as an attachment to this report. It should be noted that this CalPERS actuarial valuation, required to be disclosed with this staff report, assumes that 22 employees offered the early retirement will accept it, and none of the positions will be filled in the future. This is very unlikely to be the case so this model makes it difficult for the City to gain a realistic picture of our future sav...
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