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Request for Council Action Page Two August 25, 1978 In any action involving monetary damages as a result of the violation of A.D.E.A. the amount owing shall contemplate two elements; first, items of pecuniary or economic loss such as wages, fringe and other job-related benefits; second, the item of liquidated damages (calculated as an amount equal to the pecuniary loss) which compensates the aggrieved party for nonpecuniary losses arising out of a willful violation of the A.D.E.A. (Overnight Trans- portation Company v. Missel, 316 U.S. 572). Therefore, if -the City's existing retirement policy is challenged and found unconstitutional the City would be held liable for substantial sums of unpaid back wages as well as liquidated damages. While the .federal legislation provides for a few exceptions to the ban on mandatory retirement, particularly in the area of highly -paid employees, members of college faculties, public school teachers and certain occupations such as law enforcement and fire protection, it does not grant employing agencies a choice of whether they should or should not be bound by its provisions. The employing agency must either comply or be found in violation of the legislation. Hence, a mandatory retirement of miscellaneous employees prior to age 70 would be in direct violation of the federal legislation as of January 1, 1979. The City's existing retirement plan requiring mandatory retirement of miscellaneous employees at age 67 will be in violation of federal standards as of January 1, 1979. CONCLUSIONS Since the state and federal governments have abolished a mandatory retirement age for their miscellaneous employees and the state legislature has indicated that there is no state economic interest in perpetuating compulsory retirement, it is strongly recommended that the City amend its contract with P,E.R.S, and elect to be subject to Government Code Section 20983.6. Attachment M