Title
Chief Admininstrative Officer recommending Chairman be authorized to sign the following pertaining to additional California Public Employees' Retirement System Credits:
(1) Resolution 196-2007 providing an additional designated period for two years additional service credit benefit to certain classifications and departments and Certificate of Compliance for same; and
(2) Resolution 197-2007 providing two years additional County service for the sole purpose of retiree health insurance.
Body
BUDGET SUMMARY:
Total Estimated Cost $94,669
Funding
Budgeted $
New Funding $
Savings $(995,576)
Other $
Total Funding Available $
Change To Net County Cost $(900,907)
Fiscal Impact/Change to Net County Cost: The above table shows the annual savings if all 23 eligible employees take the early retirement program based on the following assumptions:
Costs: 1) The total cost associated with the two years additional service credit for the affected eligible employees is estimated at $702,259. Assuming that PERS will earn at least 8.5% on the County’s contributions over the next 20 years, the annual cost of the additional two years service credit is estimated at $73,080. 2) The inclusion of two years of County service for the purpose of enhancing the level of retiree health insurance benefits for up to five affected employees is estimated to cost $21,380 for the next two years. 3) In addition, there is an actuarial fee of $10.00 for each eligible member who retired during the designated period. Assuming all affected employees took the early retirement incentive, the cost of this actuarial fee is $230.
Savings: If all 23 affected employees took the early retirement incentive and each position was held vacant through June 30, 2008, the County would save approximately $758,000 in salary costs and $237,460 in benefit costs annually.
Background:
In accordance with Government Code Sections 20903 and 7...
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