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REQUEST FOR COUNCIL ACTION CITY COUNCIL AGENDA DATE June 12, 1981 TITLE PROPOSED AMENDMENT TO THE CITY'S CONTRACT WITH THE PUBLIC EMPLOYER'S RETIREMENT SYSTEM (PERS). D !• COUNCILACTION CLERK OF THE COUNCIL 1. Receive and file the attached Actuarial Valuation Report prepared by the Public Employee's Retirement System (PERS) regarding estimated future reductions in City retirement plan costs if the current 2% at Age 50 benefit formula is reduced to the 2% at Age 55 formula for future Police and Fire safety -member employees. 2. Adopt the attached Resolution declaring Council's intention to approve an amendment to the City's contract with PERS to adopt the 2% at Age 55 formula for new police and fire safety -member employees and to delete the Military Service Credit option for all personnel employed on or after the effective date of such contract amendment. 3. Adopt the attached Ordinance authorizing the above specified amendments to the contract between the City and PERS. EXECUTIVE SUMMARY The above recommended actions will further Council's goal of reducing the overall retirement plan costs for City employees by adopting a substantially less expensive retirement benefit formula for future Police and Fire safety -member personnel. Deletion of the Military Service Credit option for all new employees will eliminate a discriminatory and potentially counter-productive benefit that adds little or nothing to the maintenance of an adequate, competitive retirement program. The contract amendment process specified in the California Public Employees' Retirement Law requires that the above actions be taken in the sequence listed above in the "Recommended Action" section. NOTE: In accordance with provisions of the current labor agreements between the City and its recognized employee associations, the City must take these actions during the term of the agreements which expire on June 30, 1981. I