10C Action 2012 0402 - Laserfiche WebLink

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File Number: 12 -153 In order to implement this program, the following conditions must be met: An amendment to the City's contract with CalPERS must be made to allow for this provision. The City has already made this amendment in 1993 when it offered the benefit previously. The City must certify the following: Due to an impending curtailment of, or change in the manner of performing services, the best interest of the agency will be served by granting such additional service credit. The added cost to the retirement fund for eligible employees who retire during the designated window period will be included in the contracting agency's employer contribution rate for the fiscal year that begins two years after the end of the designated period. It has elected to become subject to Section 20903 because of impending mandatory transfers, demotions, and layoffs that constitute at least one percent of the job classification, department or organizational unit, as designated by the governing body, resulting from curtailment of, or change in the manner of performing its services. Its intention at the time Section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled thereby resulting in an overall reduction in the work force of such department or organizational unit. In accordance with the Resolution, CalPERS early retirement option will be offered to employees in the following job classifications: Department/Organizational Unit # Classification Community Development 2 Senior Project Specialist Community Development 1 Project Specialist II CD /Housing Services Division 1 Administrative Assistant II Previous Actions On March 5, 2012, by Minute Order No. 2012 -010, the City Council continued the subject matter, and directed staff to meet with the bargaining unit as soon as possible and to return to Council with a recommendation at the next regular meeting. On March 19, 2012, by Minute Order No.2012 -014, the City Council approved the cost estimate to provide the two years additional service credit benefit provision of the City of San Leandro's contract with CalPERS, pursuant to Government Code Section 20903. Fiscal Impacts As detailed in the March 19, 2012 public notice statement, it is estimated that the additional annual PERS cost, if all eligible employees accept the early retirement option, would be City of San Leandro Page 2 Printed on 312712012