CITY COUNCIL: CalPERS Retirement Program Regarding Executive Assistant

Meeting Date: June 3, 2008
Prepared by: Jane Miller

City Council
Agenda Item Summary

Name: Consideration of a Resolution to provide another designated period for Two Years Additional Service Credit, Section 20903, for the position of Executive Assistant, based on the City’s contract amendment with the California Public Employees Retirement system (CalPERS).

Description: The City’s contract with the CalPERS retirement program provides for two
additional years of service credit within the parameters of Government Code 20903 whenever the City adopts a resolution designating another election window for an eligible employee or employees to retire.

The CalPERS procedure for implementing a designated window for two years of additional service credit requires the City to disclose the costs of the benefit at least two weeks prior to the adoption of the resolution. Costs were disclosed at the special Council meeting on May 20, 2008, to designate this benefit for the classification of Executive Assistant.

Fiscal Impact:
The costs for two years of service credit will be amortized actuarially over a period of 20 years as a percentage of the employer retirement contribution, beginning two years from the end of the designated election period. A savings to the City will be achieved over time by maintaining at least one vacancy in the City’s current organization in exchange for the retirement of the incumbent Executive Assistant.

Summary:
Adoption of the Resolution will enable the incumbent to receive a benefit of two years additional service credit through CalPERS, while also providing the City with the opportunity to redirect salary and benefit resources toward alternative methods of providing City services.

Overall Cost:
City Funds: No new funding is required. The $29,000 actuarial estimated cost will be amortized over 20 years and incorporated as part of the employer contribution, two years from the end of the designated election period (FY 2009- 2010).

Staff Recommendation: Adopt the resolution.

Decision Record: On August 5, 2003, Council adopted Ordinance No. 2003-07 authorizing an amendment to the contract between Carmel-by-the-Sea and the Board of Administration of the California Public Employees’ Retirement System to provide for Section 20903 (Two Years Additional Service Credit), and implemented a designated period for this benefit between September 6, 2003 and December 31, 2003. On June 5, 2007, Council adopted Resolution 2007-28 which designated another period for two years of service credit for the classification of Library Director. On May 20, 2008, Council advised the public of the costs for implementing another designated period for two years of service credit for the classification of Executive Assistant and directed staff to prepare a Resolution for implementation.

Reviewed:


Rich Guillen, City Administrator Date


CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2008-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA TO GRANT ANOTHER DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT THROUGH THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM

WHEREAS, the City Council of the City of Carmel-by-the-Sea is a contracting Public Agency of the Public Employees’ Retirement System; and

WHEREAS, said Public Agency desires to provide another designated period for
Two Years Additional Service Credit, Section 20903, based on the contract amendment
included in said contract, which provided for Section 20903, Two Years Additional Service Credit, for eligible members.

NOW, THEREFORE, BE IT RESOLVED, that said City Council does seek to add another designated period, and does hereby authorize this Resolution, indicating a desire to add a designated period from June 4, 2008 through September 4, 2008 for the classification of Executive Assistant in the Carmel-by-the-Sea.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE SEA, this 3rd day of June 2008, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:

Signed:

_______________________________
Heidi Burch, City Clerk

ATTEST:

___________________________
SUE McCLOUD, MAYOR