11B - ORD PERS AMENDMENT - Laserfiche WebLink

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CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: REQUEST FOR COUNCIL ACTION May 7, 2007 TITLE APPROVED o As Recommended o As Amended D Ordinance on 15t Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For AMEND THE CITY'S CONTRACT WITH THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM FOR CREDIT FOR SED SICK LEAVE CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Receive and file. 2. Continue consideration of Ordinance to May 21, 2007. DISCUSSION California Government Code Section 7507 requires that the future annual cost of the proposed contract amendment be made public at least two weeks prior the adoption of the final Ordinance. In accordance with the Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association for FY 2004-2008 the City agreed to provide Credit for Unused Sick Leave benefits for local safety members effective July 1, 2007. This benefit is currently provided to miscellaneous City employees. The Unused Sick at the time of pursuant to a System. Leave Credit Benefit allows unused accumulated sick leave, retirement, to be converted to additional service credit formula established by the Public Employees' Retirement The above benefit will be offered along with the current options. Currently sick leave may be used for payment of medical insurance premiums or may be converted to cash for payment based on established formulas. Under this contract amendment conversion of sick leave to service credit allows the City to pay funds out over a thirty year period of time. The CalPERS actuarial valuation determined this will result in an accrued liability of $2,328,279. 11 B-1