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The benefit has been utilized as a way of encouraging retirement-eligible employees to retire. <br />Offering the two years' additional service credit as a retirement incentive reduces the City's <br />staffing costs and gives employees a voluntary means of participating in the City's budget <br />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 CaIPERS early retirement option will be offered to employees in the following 19 job <br />classifications: <br />Department # Classification <br />City Manager's Office 2 Information Services Specialist <br />City Manager's Office 1 Assistant Information Services Manager <br />City Manager's Office 2 Systems Analyst <br />Community Development 2 Permit Clerk <br />Engineering & Transportation 1 Senior Engineering Aide <br />Engineering & Transportation 2 Engineering Inspector <br />Finance 1 Financial Supervisor <br />General 3 Administrative Assistant I <br />General 4 Administrative Assistant II <br />Human Resources 2 Senior Human Resources Analyst <br />Human Resources 1 Human Resources Director <br />Library 3 Sr. Library Assistant <br />Library 1 Senior Librarian <br />Library 3 Librarian <br />Library 1 Circulation Supervisor <br />Police 4 Administrative Specialist -Police <br />Police 1 Police Services Aide <br />Police 1 Community Services Specialist <br />Public Works 1 Lead Equipment Mechanic <br />It is estimated that the additional annual PERS cost, if all eligible employees accept the early <br />retirement option, would be approximately $135,010 and the annual budget savings would be <br />approximately $4,105,032. The estimated annual net savings would be approximately <br />$3,970,022. Savings are accelerated during the first two years pending the estimated increase in <br />the Call'ERS rate of .76% if all eligible employees accept the option. Although its enactment <br />could result in budget savings, the major reason for offering the option is to reduce the likelihood <br />of layoffs by giving eligible employees an incentive to retire earlier than they may have planned. <br />Current City Council Policv <br />Not Applicable <br />Previous Citv Council Action(s) <br />Not Applicable <br />