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<br /> <br />ORT <br /> <br /> <br /> <br /> <br />6.2A <br />Page 1 <br /> <br /> <br />Honorable r ahd,CityC~UACil <br />, ¡From the City MaR¡Bgtr <br /> <br />March 13, 2006 <br /> <br />Subject <br />Resolution of intention to amend the contract between the City of Redwood City and the <br />California Public Employees Retirement System and Introduction of Ordinance approving <br />and authorizing execution of the amendment to the contract with the California Public <br />Employees Retirement System to provide Government Code 21354.5, "2.7% @ 55 Full <br />Formula" for Service Employees International Union, Local 715, Redwood City <br />Management Employees Association and Executive Management (miscellaneous) <br />members effective on July 10, 2006. <br /> <br />Recommendation <br />That the City Council, initiate a contract amendment with the California Public Employees <br />Retirement System to provide for Government Code, Section 21354.5, 2.7% @ 55 Full <br />Formula for Redwood City miscellaneous members, by adopting a resolution of intention, <br />and that the City Council introduce the ordinance approving and authorizing the contract <br />amendment with the Public Employees Retirement System to provide for Government <br />Code, Section 21354.5, 2.7% @ 55 Full Formula for all miscellaneous members effective <br />on July 10, 2006. <br /> <br />Background <br />During the most recent negotiations with the Service Employees International Union (SEIU) <br />Local 715 and the Redwood City Management Employees Association (RCMEA) the City <br />agreed to provide, Government Section 21354.5, 2.7% @ 55 Full Formula. <br /> <br />Under the California Public Employees Retirement System, the formula "2.7 @ 55" will be <br />used to calculate the retirement allowance. There are three components used to calculate <br />this allowance: years of service, benefit factor, and final compensation. The benefit factor, <br />"2.7% @ 55", is the percent of pay to which a retiree is entitled for each year of service. <br /> <br />Alternative <br />Staff cannot recommend an alternative, as Council has already agreed to provide this <br />benefit by approving labor contracts with the aforementioned groups. This action is <br />simply to amend the City's existing contract with the Public Employees Retirement <br />System. <br /> <br />Fiscal Impact <br />The estimated cost to provide Government Code, Section 21354.5, 2.7% @ 55 is <br />$1,598,260. This amount will be included in the 2006/2007 budget. <br /> <br />-- ------ - ------- - .. - -- -- ---- - <br />