AgdaPkt 2012-09-10 - Laserfiche WebLink

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6.4.F. - Page 4 of the bilingual differential. All salary and differentials would be frozen after July 1, 2015. The current MOU between the City and PSA provides for an EIP to facilitate the transition to a new PERS formula for safety employees. The existing EIP provides for a total of nine EIPs over 3 years, which provides a payment equivalent to the cost of purchasing one year of additional service credit from CaIPERS. The current EIP program is limited to three employees per fiscal year, and is only eligible for an employee retiring with a Service Retirement from the City before June 30, 2015. With the additional proposed transitions and two-tiered salary plan, the City proposed a modified EIP that would facilitate earlier retirement dates and which would reduce projected costs of the transition. The City has proposed the following modifications: Two EIPs, equal to the amount of two-years of PERS service credit, will be offered this year with an election deadline of October 15, 2012 and departure on or before January 30, 2013. In the event that both two-year EIPs are not utilized, the remaining two-year EIP shall convert to a one-year EIP to be taken on or before June 30, 2015 pursuant to the terms of the current MOU. In the event that both two-year EIPs are utilized there shall be five remaining one-year EIPs available to be taken before June 30, 2015, pursuant to the terms of the current MOU. EIP participation eligibility shall be limited to three people per fiscal year based on seniority in the unit. At no time will there be more than six (6) one-year EIPs ALTERNATIVES 1. The Council could take no action and advise staff to continue use of existing job descriptions and salary plan. 2. The Council could advise staff to conduct further research and recommend alternative classification and/or salary changes. FISCAL IMPACT The initial range of annual ongoing costs may be as low $70,000 per year and as high as $195,000, depending on the timing of retirements for current employees in the tiered salary plans. These costs would be offset by retirement savings in future years as staff transitions occur. Moreover, the new salary structure reduces the chances of salary escalation due to compaction which had previously occurred cue to the sergeant's "hybrid" salary structure of combining Lieutenant and Sergeant salaries in comparable agencies when determining salary for the current Sergeants. This system led to salary increases of higher level positions within the Police ranks because of the Sergeants being so highly paid. The long term savings of mitigating this situation cannot accurately be determined. ENVIRONMENTAL REVIEW N/A