AgdaPkt 2004-03-08 - Laserfiche WebLink

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. I 5'2 -) REPORT - To the Honorable Mayor and City Council From the City Manage March 8, 2004 Subject Resolution of intention to amend the contract between the City of Redwood City and the Public Employees Retirement System and introduction of Ordinance approving and authorizing execution ofthe amendment to the contract with the Public Employees Retirement System to provide Government Code 21362.2, "3% @ 50 Full Formula" for Redwood City Police Officers Association and Redwood City Police Sergeants Association members effective on June 28, 2004. Recommendation That the City Council, initiate a contract amendment with the Public Employees Retirement System to provide for Government Code, Section 21362.2, 3% @ 50 Full Formula for the Redwood City Police Officers Association and Police Sergeants Association members by adopting a resolution of intention, and that the City Council introduce the ordinance approving and authorizing the contract amendment with the Public Employees Retirement System to provide for Government Code, Section 21362.2, 3% @ 50 Full Formula for the members of both Associations effective on June 28, 2004. l3ackground - Juring the most recent negotiations with the Redwood City Police Officers Association and the Police Sergeants Association the City agreed to provide, Government Code Section 21362.2, 3% @ 50 Full Formula. During the 1999 Legislative Session, Senate Bill 400 (SB 400) added two optional service retirement formulas to the menu available to public agency safety members one of the options is the 3% @ 50. Currently, the contract between the Public Employees' Retirement System and the City provides Section 21362, of the Government Code, "2% @ 50" to the Redwood City Police Officers Association and Police Sergeants Association members. Under the Public Employees Retirement System, the formula "3% @ 50" will be used to calculate the retirement allowance. There are three components used to calculate this allowance; years of service, benefit factor, and final compensation. The benefit factor, "3% @ 50", is the percent of pay to which a retiree is entitled for each year of service. Of the seven comparable cities that we use for survey information for POA & PSA, all seven currently offer the 3% @ 50 retirement formula. Alternative Staff cannot recommend an alternative, as Council has already adopted the increase in this benefit. This action is simply to amend the City's existing contract with the Public Employees Retirement System. Fiscal Impact The estimated cost to provide Government Code, Section 21362.2, 3% @ 50 is $3,361,868. This amount will be included in the 2004/2005 budget. -