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The Golden Handshake benefit has been utilized as a way of encouraging retirement-eligible <br />employees to retire. Offering the two years' additional service credit as a retirement incentive <br />reduces the City's staffing costs and gives employees a voluntary means of participating in the <br />City's budget reduction strategies. <br />The savings realized from the program are somewhat offset by a resulting increase in the City's <br />Employer Contribution Rate paid to Ca1PERS. The added cost to the retirement fund for all <br />eligible employees, who retire during the designated period, would be included in the City's <br />future employer contribution rate, effective the fiscal year starting two years after the end of the <br />designated period. <br />A CalPERS "Golden Handshake" will be offered to employees in the following 17 job <br />classifications: <br />Department # Classification <br />Community Development 3 Permit Clerk <br />Engineering & Transportation 1 Supervising Engineering Inspector <br />Finance 3 Account Clerk <br />General 3 Administrative Assistant I <br />General 5 Administrative Assistant II <br />General 3 Administrative Specialist II <br />Library 5 Sr. Library Assistant <br />Library 1 Library Services Manager <br />Public Works 1 Assistant Marina Supervisor <br />Public Works 1 Equipment Mechanic <br />Public Works 1 Park Supervisor <br />Public Works 3 Park Maintenance Worker I <br />Public Works 3 Park Maintenance Worker II <br />Public Works 1 Street Supervisor <br />Public Works 1 Supply Maintenance Worker <br />Public Works 1 Tree Trimmer II <br />Recreation & Human Services <br />Recreation & Human Services Manager <br />It is estimated that the annual PERS cost, if all eligible employees accept the Golden handshake, <br />would be $4,'768,235 and the annual budget savings would be $5,581,453. The estimated net <br />savings would be $813, 218. Savings are accelerated during the first two years pending the <br />estimated increase in the Ca1PERS rate of .46% if all eligible employees accept the option. <br />Although its enactment could result in some budget savings, the major reason for offering the <br />option is to reduce the likelihood of layoffs by giving eligible employees an incentive to retire <br />earlier than they may have planned. <br />Current City Council Policy <br />Not Applicable <br />Previous Citv Council Action(s) <br />Not Applicable <br />