HomeMy WebLinkAbout- - CalPERS GH Fire Add. Window Final - 7/6/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 6, 2010
ITEM NUMBER:
SUBJECT: RESOLUTION TO GRANT ANOTHER DESIGNATED PERIOD FOR TWO YEARS
ADDITIONAL SERVICE CREDIT - LOCAL FIRE SAFETY MEMBERS
DATE: JUNE 23, 2010
FROM: ADMINISTRATIVE SERVICES DEPARTMENT/HUMAN RESOURCES DIVISION
PRESENTATION DEBRA YASUI, HUMAN RESOURCES ADMINISTRATOR
BY:
FOR FURTHER INFORMATION CONTACT: DEBRA YASUI AT (714) 754-5052
RYAN THOMAS AT (714) 754-5104
RECOMMENDATION:
1) Adopt Resolution No._ titled "City Council of the City of Costa Mesa Resolution to
Grant Another Designated Period for Two Years Additional Service Credit"
(Attachment 1) for local Fire Safety members of the California Public Employees'
Retirement System (CaIPERS).
2) Authorize the City Clerk to execute the required CalPERS certifications and
documents (for local Fire Safety members):
a. CON -12- Certification of Governing Body's Action (Attachment 11).
b. CON -12A — Certification of Compliance with Government Code
Section 7507 (Attachment III).
c. Certification of Compliance with GC Section 20903
(Attachment IV).
BACKGROUND:
The City contracts with CalPERS for retirement benefits for all full-time and some eligible
part-time employees who qualify for retirement benefits. "Two Years Additional Service
Credit" is a CalPERS contracted benefit designed to assist agencies during periods of
economic or financial crisis. In particular, it provides an incentive for retirement through
additional service credit. The decision to retire and accept this benefit is strictly voluntary.
The current Memorandum of Understanding (MOU) between the City of Costa Mesa and
the Costa Mesa Firefighters Association states the CalPERS contract will be amended to
provide the 3%@50 retirement formula for the Fire group. This process was completed,
and on June 6, 2010, the CalPERS contract amendment became effective. Article 6.1 of
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the CMFA MOU provides that "After the CalPERS contract has been amended to provide
the 3%@50 benefit, the City also agrees to amend the CalPERS Safety Plan to provide
CalPERS Section 20903 (Two Years Additional Service Credit) option as soon thereafter
as permitted by CaIPERS."
At the City Council meeting of June 15, 2010, the process was initiated to provide "Two
Years Additional Service Credit" for eligible Fire Safety employees. This included a
disclosure of costs, which is required two weeks prior to the adoption of a Resolution
designating a retirement window period.
ANALYSIS:
To conclude the process to provide "Two Years Additional Service Credit", CalPERS
requires adoption of the above -referenced Resolution which provides the designated
retirement window period and specifies the eligible members (City's sworn Fire employees).
Additionally, CalPERS requires the execution of certifications and documents that ensure
compliance with State regulations.
If adopted, the attached Resolution will open a retirement period on July 7, 2010. The
window will remain open for 90 days, until October 4, 2010.
ALTERNATIVES CONSIDERED:
Requirements of Meet and Confer as referenced in Government Code Section 3500 et
seq. (Meyers-Milias-Brown Act) and Meet and Consult have been fulfilled. If CalPERS
adoption requirements are met, no other alternatives are being considered.
FISCAL REVIEW:
A full cost disclosure of providing two years additional services credit was included in the
staff report presented at the City Council meeting of June 15, 2010.
LEGAL REVIEW:
The attached Resolution Number has been reviewed by the City Attorney and is
approved as to form.
CONCLUSION:
The CMFA MOU provides that a designated period for two years additional service credit
be opened for eligible Fire safety members as soon after their retirement formula
amendment is effective as permitted by CalPERS. Staff recommends that the City
Council authorize and approve the procedural steps required by CaIPERS, and the final
step includes the adoption the Resolution granting the window period and authorization for
the City Clerk to execute required CalPERS certifications and documents to ensure
compliance with CalPERS' regulations.
E
DEBRA YASUI
Human Resources Administrator
KIMBERLY HALL BARLOW
City Attorney
STEPHEN N. MANDOKI
Director of Administrative Services
COLLEEN O'DONOGHUE
Assistant Finance Director
DISTRIBUTION: City Manager
City Attorney
City Clerk
Assistant Finance Director
Budget and Research Officer
ATTACHMENTS: I Resolution to Grant Another Window Period for Two Years
Additional Service Credit (Fire Safety Employees)
II CON -12- Certification of Governing Body's Action
III CON -12A- Certification of Compliance with Government Code
Section 7507
IV Certification of Compliance with GC Section 20903
Two Years Addl Svc Credit 6-17-10
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