HomeMy WebLinkAbout1996-09-10; City Council; 13808; ONE TO FOUR YEARS ADDITIONAL SERVICE CREDIT FOR ELIGIBLE CITY EMPLOYEES RETIRING FROM CITY SERVICEONE TO FOUR YEARS ADDITIONAL SERVICE CREDIT FOR
ELIGIBLE CITY EMPLOYEES RETIRING FROM CITY SERVICE
ECOMMENDED ACTION:
Receive the report regarding PERS One to Four Years Additional Service Credit for eligible City
Employees retiring from city service, and direct staff to place the item on the October 1, 1996
agenda for Council action.
ITEM EXPLANATION:
Government Code Section 20821.6, which became effective January 1, 1995, provides
Retirement System (PERS) determines that, because of an impending curtailment of or
change in the manner of performing service, the best interests of the agency would be
served by encouraging the retirement of local members, the governing body may adopt a
resolution to grant eligible employees one to four years additional service credit when
certain specified conditions exist. This option is only available to PERS contracting
agencies until June 30, 1997.
Under this program, the City is required to determine 1) who is eligible, 2) how many
years of service credit to be extended (from one to four), and 3) a 120-day period in
which members must retire. The City must certify to PERS that the salary savings
realized by deleting positions exceeds the cost of the additional service credit, and the
costs must be made public at least 14 days prior to adoption of a resolution.
In order to reduce the City’s budget and downsize the organization without layoffs or
furloughs, Department Heads were asked to recommend as eligible for this option only
those positions that could be permanently deleted andor facilitate the reorganization of
City departments. The recommendations offered by the Department Heads were
reviewed and further refined by the City’s senior management staff. Sixty-one
employees were initially identified as meeting the PERS criteria (age 50 and a minimum
of 10 years PERS service). Based on the restrictions imposed by PERS, as well as the
analysis done by staff, five positions are recommended as eligible for the One to Four
Years Service Credit retirement option.
Staff conducted an analysis of the cost and net savings for each additional year of service
credit and found that the cost of providing three or four years of service credit would
exceed the net savings to the City. Therefore, staff recommends that the City provide two
years of service credit to eligible members who retire from City service within the
specified timefiame listed below.
PERS allows a 120-day period in which eligible members who meet the conditions must
retire in order to receive the service credit. This period may begin as early as one day
following, and end not more than 120 days following, the City’s adoption of the
Resolution. Per these requirements, the City of Carlsbad’s One to Four Years Additional
Service Credit period will begin on October 2, 1996 and end January 29, 1997.
that when the governing body of a contracting agency of the Public Employees’
I
Genealogy
CSD/Fleet
City Clerk
City
Manager
staff with part-time:
P/T Ref. Librarian
PIT Library Clerk
...................................................................................................................................................................................................................... up to $13,OOO/yr.
up to $8,OOO/yr.
Office Spec. I1 Delete position $20,900-$25,400
Minutes Clerk Delete 2 positions; $26,300-$32,000
Senior Office Spec. reorganize dept. and $22,700-$27,500
staff with one: ...................................................................................................................................................................................................................... Deputy City Clerk $26,300-$32,000
Executive Assistant Downgrade to: $47,200-$60,200 ...................................................................................................................................................................................................................... Sec. To City Council $3 1,300-$39,900