10B Action 2009 0504 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: April 25, 2009 TO: Stephen L. Hollister, City Manager FROM: Justinian Caire, Human Resources D~,~ Human Resources'^D~epartment ~----- BY: Louise Kenist nc'f , Sr. Human Resources Analyst Human Resources Department SUBJECT PROJECT/PROJECT DESCRIPTION: APPROVED AND FORWARDED TO CITY COUNCIL Steph L. ist City Manag RESOLUTION OF INTENT TO PROVIDE TWO YEARS ADDITIONAL SERVICE CREDIT AS AN INCENTIVE TO IDENTIFIED CLASSIFICATIONS TO RETIRE. SUMMARY AND RECOMMENDATION Staff recommends that the City Council adopt the attached resolution utilizing the two years additional service credit benefit provision of the City of San Leandro's contract with CaIPERS, pursuant to Government Code Section 20903. BACKGROUND In 1993, the City of San Leandro adopted an ordinance to amend its contract with Ca1PERS to provide two years' additional service credit, pursuant to Government Code Section 20903. It is required by law that the City disclose the costs associated with this action at a public meeting two weeks prior to adopting the resolution adding the designated retirement period, which it did at the April 20, 2009 Council meeting. In order for PERS members to be eligible to receive a regular retirement payout, they must be at least 50 years of age, have minimum of five years of service credit in the PERS system and retire during the designated period. The designated period is June ], 2009 through October 31, 2009. The amount of the payout is determined by a combination of age, length of service and salary. Offering eligible employees additional service credit can benefit both the City and the employees. If enacted, the additional service credit will increase identified employee's retirement annuity and reduce the need for mandatory layoffs, transfers or demotions. DISCUSSION The CaIPERS two years additional service credit benefit, commonly referred to as the "Golden Handshake," is an optional benefit offered through Ca1PERS which allows contracted agencies an option to provide service credit to members who retire during a designated window because of impending mandatory transfers, layoffs, or demotions.