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S"0411* PREPARED BY Director of Personnel DATE 8/25/78 PHONE 4154 SUBJECT RESOLUTION OF INTENTION TO AMEND CONTRACT WITH P.E.R.S. TO DATE OF COUNCIL ACTION CONTINUATION OF EMPLOYMENT BEYOND AG$ 67 FOR MISCELLANEOUS MEMBERS I! D \ DEPUTY CITY MANAGER ASSISTANT-- VMANAGER CLERK OF THE COUNCIL RECOMMENDED ACTION Approve the attached resolution of intention to approve an amendment to contract between the Board of Administration of the Public Employees' Retirement System and the City Council of the City of Santa Ana. BACKGROUND Assembly Bill (A.B.) 568, which became effective as an urgency statute on September 16, 1977, permits Public Employees' Retirement System (P.E.R.S.) participants to continue in employment irrespective of age as regular retirement system members, upon a written request signed by the member to remain in employment beyond age 67, and a certification of the member's competence signed and officially authorized by the governing body of each agency. The statute is not applicable to public law enforcement and firefighting employees. Members will now have the right to continue in employment beyond age 67 under the following circumstances: The agency amends its contract electing to be subject to Government Code Section 20983.6; and, The agency certifies the member's competence in his or her position. Section 2098 3.6 requires each agency amending to this provision to adopt rules and regulations for certifying member competency to P.E.R.S. P.E.R.S. will require the following: 1. A written request, signed by the member, to remain in employment beyond age 67; and, 2. A certification of the member's competence to perform in his or her position, signed by the official authorized by the governing body of each agency. Members who continue in employment beyond age 67 are subject to the same rights and liabilities as other active members. For example, an Application for Retirement is necessary to retire, and retirement cannot be effective earlier than the day following the last day for which salary is payable. ANALYSIS The recently -adopted federal legislation, Age Discrimination in Employment Amendment of 1977, (H.R. 5383) eliminates altogether mandatory retirement based on age for most employees of the Federal Government. The legislation extends the retirement age to 70 for nearly all state and local government workers rendering the existing retirement requirement at age 67 invalid as of January 1, 1979. The primary thrust of this legislation is to strengthen and broaden the provisions of the Age Discrimination In Employment Act (A.D.E.A.) of 1967 by insuring that older individuals who desire to work will not be denied employment opportunities solely on the basis of age. The legislation extends the upper age limits from 65 to 70 for all those subject to the legislation and includes a ban on forced retirement for most federal employees, a majority of whom can be forced to retire at 70 under present civil service law. The removal of the upper age limitation for federal employees becomes effective on September 30, 1978. QOWTIpN e i tQj mmZi m W = a` 6��6 -99T6 p