10A Action 2010 0315 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: March 15, 2010 TO: Stephen L. Hollister, City Manager FROM: Justinian Caire, Human Resourc i r Human Resources Department BY: Louise Keniston, r. Human Resources Analyst Human Resources Department SUBJECT PROJECT/PROJECT DESCRIPTION: APPROVED AND FORWARDED TO CITY COUNCIL Stephen L. Hollister City Manager 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 February 16, 2010 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 a minimum of five years of service credit in the PERS system and retire during the designated period. The designated period was originally set from March 15, 2010 through June 15, 2010. PERS has informed the City that the notice requirement was not met as the March 1, 2010 approval of the resolution was not 14 days from the official date of notice. The original date of notice was the Council meeting held on Tuesday, February 16, 2010 as the preceding Monday was a holiday. To meet this requirement, the resolution is being presented to you a second time for approval. The designated period will be changed by one day and be set from March 16 through June 15, 2010. There are no other changes to the action you previously authorized. 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 employees' retirement annuity and reduce the need for mandatory layoffs, transfers or demotions.