Title
Chief Administrative Officer recommending adoption of Resolution 192-2008 to supercede Resolution 165-2008, to include the classification that was inadvertently omitted granting two years of additional County service for the sole purpose of retiree health insurance.
Body
Fiscal Impact:
The inclusion of two years of County service for the purpose of enhancing the level of retiree health insurance benefits for one additional employee is estimated to cost $4,541 for the next two fiscal years.
Background:
In accordance with Government Code Sections 20903 and 7507, PERS requires a series of actions in order to provide additional two years of service credit towards retirement. The first action requires public notice of prospective costs. Government Code Section 7507 requires that the cost to provide this benefit be made public at a public meeting at least two weeks prior to the adoption of the Resolution. This public notice was provided to the Board on June 3, 2008 through Agenda Item #60, Legistar Item 08-0859.
The second action, requiring adoption of a resolution that would provide additional service credit for eligible employees in a specified classification who retire during a designated window period, June 18, 2008 and September 26, 2008, was taken on June 17, 2008 through Agenda Item #47, Legistar Item.
Reason for Recommendation:
The proposed early retirement program would add two years of service credit to affected County employees. However, it would not automatically add two additional years of County service for purposes of determining the level of retiree health insurance benefits. Without specifically including this option into the early retirement program, some potential retirees may opt to wait until they serve enough time to reach the higher benefit level. (For instance, an employee with 18 years of service may wait to retire for two years, when his retiree health insurance benefit rises from 50% of single-party premium to 67% of si...
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