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HomeMy WebLinkAboutNovember 20, 2006 Request for Council ActionREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 20, 2006 TITLE: PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) - TWO YEAR SERVICE CREDIT (PUBLIC NOTICE) CITY MANAGER RECOMMENDED ACTION Receive and file. DISCUSSION CLERK OF COUNCIL USE ONLY: _6006 o ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On October 7, 1991, the City Council amended its contract with the California Public Employee's Retirement System (CalPERS) providing eligible members Two -Years Additional Service Credit Option pursuant to Government Code Section 20903. To comply with California Government Code Section 20903, the City of Santa Ana hereby makes a two-week notice public that it intends to offer employees in designated classifications a two-year retirement credit as part of the budget reduction process for fiscal year 2006-2007. This offer is available to eligible members for a designated period starting November 21, 2006, and continuing through February 20, 2007. All eligible members in the designated classifications must retire within the window period to qualify for this provision. The designated classifications are as follows: Executive Director of Community Development Redevelopment Project Manager III According to California Government Code Section 7507, the average cost as determined by the California Public Employees Retirement System actuarial formulas is approximately $65,630 per applicant. CalPERS will amortize the cost for this retirement credit over an amortization period of thirty years. 6d5A-7 PERS Two Year Service Credit November 20, 2006 Page 2 of 2 The Request for Council Action and Resolution to authorize this action will be on the next City Council Agenda. FISCAL IMPACT At the time the City offers this retirement credit, funds will be secured in the Community Development Agency, by a reduction in their budgeted position allocations. 1>1 riqueAUect Executi Dir Personnel Ses APPROVED AS TO FUNDS AND ACCOUNTS: r Francisco Gutierrez Executive Director Finance & Management Services Agency