Amendment Ret. Form 702 - Laserfiche WebLink

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TGIF CITY OF MA M CALIFORNIA June 25, 1970 MEMO TO: City Council FROM: City Manager Please address .®plies to: SUBJECT: COST OF LIVING AMENDMENT FOR RETIRED EMPLOYEES Attached hereto for your consideration is a proposed resolution No. 70-47 which would amend the existing retirement system contract to provide a cost of living increase only for those City employees who have been retired since prior to January 1, 1967. The State Legislature has provided four types of cost of living benefits for retired employees. The most recent legislation affects all employees who retire after December 31, 1966 and will enable them to receive automatically after their fourth year of retirement without action by contracting agencies, up to a 112/ per year increase if warranted by consumer price index (C.P.I.) trends. The City will not be required to act on such increases henceforth nor will they result in any additional cost to the City. Of course, however, this rate of lz% is not nearly equal to the actual C.P.I. rates of approximately 6% and 7% annually in recent years. Previous City Councils have already approved two of the three remaining permissive types of cost of living amendments. The attached resolution would provide for this sole remaining increase available at the present time from State legislation adopted in 1968 for retired employees. It would benefit approximately 120 of our already retired employees who have been adversely affected by an increase of 19.7% in the C.P.S. from January 1967 to April 1970. The amount of benefit will vary on a sliding scale ranging from 2% for those whose retirement became effective during 1966 to a maximum of 12% for those who retired prior to 1962. In dollar amounts, the average individual would receive an additional $18.61 per month and the maximum increase would be $58.48.