55B - RESO AND AGMT WITH POA - Laserfiche WebLink

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Resolution and Agreement with the Public Agency Retirement Services April 18, 2011 Page 2 a stated intention to retire during the term of the agreement, in exchange for participation in an unpaid furlough program. Before Council approved the second contract extension and 12 months after the first employee retired under the 2010-11 extension, the California Public Employees Retirement System (CaIPERS) notified the City that this provision was not consistent with the principles concerning the awarding of pensions to public employees. Therefore, the City and POA negotiated an alternate method of providing a stipend to eligible employees that will reflect the actual salary they would have received upon retirement, and will comply with the agreement made by the City during the contract extension negotiations. Therefore, the City proposes the creation of a trust to be administered by Public Agency Retirement Services (PARS), a 27-year-old company that administers retirement plans for over 500 agencies in California. PARS will receive 5% annually to provide consultation and plan administration services to the City and the 25 POA employees who have retired from the City during the applicable periods of these contract extensions. No additional retirees will be eligible to participate in this supplementary retirement plan. FISCAL IMPACT First year costs are estimated to be $126,087 and ongoing annual costs are estimated to be $94,672. Funds are available under the liability account (08009051- 62300). The cost of this supplemental retirement program will be offset by a corresponding reduction in the City's PERS rate. ARROVED AS TO FUNDS AND ACCOUNTS: t r Kathie G alez Executive Director Personnel Services Agency Francisco Gutierrez Executive Director Finance & Management Services Agenc'k 55B-2