HomeMy WebLinkAbout2007/10/16 Item 7
CITY COUNCIL
AGENDA STATEMENT
~I'f::. CITY OF
'~CHUIA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
OCTOBER 16, 2007, Item~
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA TO APPROVE AN
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF CHULA VISTA TO PROVIDE
SECTION 20903 (TWO YEARS ADDITIONAL SERVICE
CREDIT) FOR LOCAL MISCELLANEOUS MEMBERS AND
LOCAL SAFETY MEMBERS (POLICE AND FIRE)
ORDINANCE OF THE CITY OF CHULA VISTA
AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM (FIRST READING)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA TO APPROVE THE ADOPTION OF THE
MEDICAL INCENTIVE PROGRAM FOR ELIGIBLE
EMPLOYEES WHO RETIRE UNDER THE TWO YEARS
ADDITIONAL SERVICE CREDIT PROVISION
Director of Human Resour~es M. ~
CITY MANAGER . '2PJ! /, j
ASSISTANT CITY MANAGER;IfI'Ifl
4/5THS VOTE: -YES D NO ~
BACKGROUND
Due to General Fund revenue shortfalls projected at $7.4 million for FY08 and $14.7
million for FY09, the City is seeking to implement cost saving measures to balance its
current budget. In an effort to avoid or minimize the potential for layoffs, reduce the
number of benefited employees and reduce personnel costs in the General Fund, it is
recommended the City amend both Local Miscellaneous and Local Safety contracts between
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OCTOBER 16, 2007, Item~
Page 2 of5
the Board of Administration of the California Public Employees' Retirement System
(CalPERS) and the City ofChula Vista to provide Two Years Additional Service Credit to
all Local Miscellaneous and Local Safety members that retire during a designated 90-day
eligibility window. The City is also proposing offering a medical incentive program to
encourage eligible employees to retire prior to December 31, 2007.
RECOMMENDATION
That cOlIDcil adopt the subject Resolution of Intention, and place on first reading the
Ordinance, which will amend both the Local Miscellaneous and Local Safety contracts
between the Board of Administration of the California Public Employee's Retirement
System and the City of Chula Vista to provide Section 20903 - Two Years Additional
Service Credit to all eligible City employees that are Local Miscellaneous and Local Safety
members. Further, that cOlIDcil adopts the Resolution approving the medical incentive
program for eligible employees.
DISCUSSION
The current California Public Employee Retirement Law allows an early retirement
incentive. Government Code Section 20903 provides two years additional CalPERS
service credit to members who retire during a designated period. The City must certify
that it is its intention that if any early retirements are granted after receipt of service credit
pursuant to Section 20903, that any vacancies created or at least one vacancy in any
position in any department or other organizational unit shall remain permanently unfilled,
thereby resulting in an overall reduction in the workforce of the department or
organizational unit.
An eligible employee may apply for the benefit during the designated window period,
which carmot be less than 90 days or no more than 180 days, subsequent to the effective
date of contract amendment. In an effort to maximize the savings realized in FY08, staff
is proposing a 90-day window period from November 7, 2007 through February 5, 2008.
To be eligible:
. Member must have at least 5 years of CalPERS service credit
. Member must be employed for at least one day during the designated period
· Member must retire during the designated period
. Member carmot receive credit under this section if member is receiving any
unemployment insurance payments
. If retired member subsequently re-enters membership, additional service
credit is forfeited
Medical Incentive: To further encourage as many eligible employees as possible to retire
before the end of the calendar year, so the City may realize the greatest potential salary
savings, in addition to the Two Years Additional Service Credit, staff is proposing a
medical incentive program, under the City's Retiree Health Plan, to employees who
choose to retire during the 90-day window. Under this program, the City would pick up
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OCTOBER 16, 2007, Item3-
Page 3 of5
the cost of the medical insurance premium for Employee Only, for up to 24 months.
Employees who retire between November 8, 2007 and December 31,2007 would have
their Kaiser or PacifiCare medical insurance premium covered by the City for all of
calendar/plan year 2008 and 2009. Employees retiring January 1, 2008 - February 5,
2008 would only have their medical insurance premium covered the remainder of
calendar/plan year 2008. Employees are required to pay any and all medical insurance
premiums for any eligible dependents.
Non-benefited, unclassified hourly employees are not eligible for the medical incentive
program.
DECISION MAKER CONFLICTS:
Staff has reviewed the decision contemplated by this action and has determined that it is
not site specific and consequently the 500 foot rule found in California Code of
Regulations section 18704.2(a)(1) is not applicable to this decision.
FISCAL IMPACT
The added cost to the retirement fund for all eligible employees who retire during the
designated window period will be included in the City's employer contribution rate for
the fiscal year that begins two years after the end of the designated period. Government
Code Section 7507 requires that the estimated present value of additional employer
contributions of the proposed contract amendments be made public at a public meeting.
This amount is based on the members' annual reportable compensation, cost factors
established by CalPERS actuaries and the fact that the City does contract for Post-
Retirement Survivor Allowance.
The following estimated cost projection was based on all 318 eligible employees taking
the additional two years credit. However, it is estimated that only approximately 25% of
the 318 employees that are eligible to retire will take advantage of this CalPERS benefit.
Miscellaneous Plan
Additional Employer Contribution:
Annual Cost:
Rate Increase in Employer Contribution:
$13,134,496 (over 20 years)
$656,725
1.14%
Safety Plan (Police and Fire)
Additional Employer Contribution (Police):
Annual Cost:
Rate Increase in Employer Contribution:
$1,757,294 (over 20 years)
$87,685
0.41%
Additional Employer Contribution (Fire):
Annual Cost:
Rate Increase in Employer Contribution:
$1,733,530 (over 20 years)
$86,677
0.84%
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OCTOBER 16, 2007, Item2-
Page 4 of 5
If all 318 eligible employees were to retire under this program the annual savings would
be approximately $33 million. Assuming only 25% of eligible employees actually retire,
the annual net savings to the City's General Fund is estimated at $8.25 million.
A final list of employees that applied for retirement will be presented to CalPERS after
the 90-day application window. CalPERS will include the cost of the Two Years
Additional Service Credit in the City's employer contribution rate commencing with the
fiscal year starting two years after the end of the designated period. The increase in
employer contribution will be amortized over 20 years.
The estimated cost of the medical incentive program is $652,800 over the two years.
However, the City is saving approximately $1.5 million dollars in cafeteria-style flex
benefits for this same group, for an additional net savings to the City's General Fund of
$847,200.
We will be able to accurately identify the final costs once all eligible employees
separate from the City and retire.
In addition to the budgetary impacts of $652,800, there will be an impact to the City's
unfunded liability for other post-employment benefits (OPEBs). Beginning in fiscal year
2007-08, in accordance with Governmental Accounting Standards Board Pronouncement
(GASB) 45, governmental entities will be required to identify and disclose the liability
and funding status of their OPEBs similar disclosure requirements to pension plans. The
Finance Department is currently working with the actuarial firm of Bartel and Associates
to determine the OPEB unfunded liability in order to comply with the new accounting
requirement. A full report on the new GASB requirement as well as updated actuarially
determined liabilities will be presented to the City Council as part of the year-end
financial statement presentation.
CONTRACT AMENDMENT PROCESS
The process set out by CalPERS for contract amendments is very specific. This item is
being presented as an announcement of the City's intention to amend its contract and to
present the first reading of the required Ordinance. Pursuant to Section 20471, approval
of the contract shall be by Ordinance adopted no less than 20 days between the adoption
of the Resolution of Intention and the adoption of the final Ordinance. The second
reading and final adoption of the contract amendment will be November 6, 2007.
ATTACHMENTS
California Public Employees' Retirement System (CalPERS) documents:
Exhibit A: Certification of Governing Body's Action
Exhibit B: Certification of Compliance with Government Code Section 7507
Exhibit C: Certification of Compliance With Government Code Section 20903
Exhibit D: Amendment to Contract Between the Board of Administration of
CalPERS and the City OfChula Vista
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OCTOBER 16,2007, Item2-
Page 5 of5
Ordinance Authorizing Amendment to the Contract Between the City Of Chula Vista
and CALPERS
Estimated Present Value of Additional Employer Contribution
Prepared by: Marcia Raskin, Director of Human Resources and Edith Quicho. Benefits Manager, Human Resources
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CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
of the
(governing body)
(public agency)
on
(date)
Clerk/Secretary
Title
EXHIBIT A
PERS-CON-12 (rev. 1/96)
7-6
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
I hereby certify that in accordance with Section 7507 of the Government Code
the future annual costs as determined by the System Actuary for the increase
In retirement benefit( s) have been made public at a public meeting of the
of the
(governing body)
(public agency)
on
which is at least two weeks prior to the adoption of the
(date)
Resolution / Ordinance.
Clerk/Secretary
Title
Date
EXHIBIT B
PERS-CON-12A (rev. 1/96)
7-7
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 20903
In accordance with Government Code Section 20903 and the contract between the
Public Employees' Retirement System, the City Council of the City of Chula Vista
hereby certifies that:
1. Because of an impending curtailment of, or change in the manner of performing
service, the best interests of the agency will be served by granting such additional
service credit.
2. The added cost to the retirement fund for all eligible employees who retire during
the designated window period will be included in the contracting agency's
employer contribution rate for the fiscal year that begins two years after the end of
the designated period.
3. It has elected to become subject to Section 20903 because of impending
mandatory transfers, demotions, and layoffs that constitute at least 1 percent of
the job classification, department or organizational unit, as designated by the
governing body, resulting from the curtailment of, or change in the manner of
performing, its services.
4. Its intention at the time Section 20903 becomes operative is to keep all vacancies
created by retirements under this section or at least one vacancy in any position in
any department or other org:;lnizational unit permanently unfilled thereby resulting
in an overall reduction in the work force of such department or organizational unit.
THEREFORE, the City Council of the City of Chula Vista hereby elects to provide the
benefits of Govemment Code Section 20903 to all eligible members who retire within
the designated period, through
CITY COUNCIL
OF THE
CITY OF CHULA VISTA
By:
Presiding Officer
Attest:
Clerk/Secretary
EXHIBIT C
Date
2yr certiftcation-PA (Rev. 4/04)
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THE A TT ACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
~IJU~ V\<:\r&~,
Ann Moore
City Attorney
Dated:C)~~ "6 'LtJol
)
Amendment to Contract
Between the
Board of Administration
California Public Employees' Retirement System
And the
City Council
City of Chula Vista
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itA
CalPERS
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Chula Vista
.
The Board of Administration, Califomia Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective
October 1, 1948, and witnessed August 31, 1948, and as amended effective October 1,
1951, November 1, 1955, January 1, 1960, January 1, 1961, September 1, 1967,
September 28, 1973, October 4, 1973, October 8, 1976, April 16, 1981, January 8,
1982, September 28, 1984, July 3, 1987, October 13, 1989, September 27, 1990,
November 16, 1990, January 4, 1991, September 6, 1991, October 7, 1994, June 28,
1995, May 29, 1998, April 7, 2000, July 1, 2002, December 27, 2002, June 27, 2003
and August 20, 2004 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 15 are hereby stricken from said contract as executed
effective August 20, 2004, and hereby replaced by the following paragraphs
numbered 1 through 15 inclusive:
1. All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 60 for local miscellaneous members and age 50 for local safety
members.
EXHIBIT D
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2. Public Agency shall participate in the Public Employees' Retirement
System from and after October 1, 1948 making its employees as
hereinafter provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on
election of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except those, which by
express provisions thereof, apply only on the election of a contracting
agency.
3. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
5. Effective October 4, 1993 and prior to January 1, 1975, those members
who were hired by Public Agency on a temporary and/or seasonal basis
not to exceed 6 months were excluded from PERS membership by
contract. Government Code Section 20336 superseded this contract
provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January
1, 1975. Legislation repealed and replaced said Section with Government
Code Section 20305 effective July 1, 1994.
6. This contract shall be a continuation of the contract of the Montgomery
Fire Protection District, hereinafter referred to as "Former Agency". The
accumulated contributions, assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section
20508 of the Government Code. Such merger occurred January 1, 1986.
a. All benefits provided under this contract shall apply to all past
service for former employees of the Montgomery Fire Protection
District.
EXHIBIT 0
7-11
.. . , .~., ,
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after December 27, 2002 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after December 27, 2002 shall be determined in
accordance with Section 21354.3 of said Retirement Law (3% at age 60
Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
10. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20965 (Credit for Unused Sick Leave).
b. Section 20425 ("Local Police Officer" shall include employees of a
police department who were employed to perform identification or
communication duties on August 4, 1972 and who elected to be
local safety members on or before September 28, 1973).
c. Section 21325 (One-Time 3% to 15% Increase For Local
Miscellaneous Members Who Retired or Died Prior to January 1,
1974). Legislation repealed said Section effective January 1, 2002.
d. Sections 21624 and 21626 (Post-Retirement Survivor Allowance)
for local safety members only.
e. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21362 2% @ 50 Full formula for local safety members.
From and after September 28, 1984 to July 1, 1985 the safety
employees of Public Agency shall be assessed an additional
0.341 % of their compensation for a total contribution rate of 9.341 %
pursuant to Government Code Section 20516.
f. Section 21574 (Fourth Level of 1959 Survivor Benefits).
g. Section 20042 (One-Year Final Compensation).
EXHIBIT D
7-12
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h. Section 20426 ("Local Police Officer" shall include any officer or
employee of a police department employed to perform
communication duties and who elected to become a local safety
member on August 25, 1973).
i. Section 21024 (Military Service Credit as Public Service).
j. Section 21623.5 ($5,000 Retired Death Benefit).
k. Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance) for local miscellaneous members only.
I. Section 20434 ("Local Fire Fighter" shall include any officer or
employee of a fire department employed to perform firefighting, fire
prevention, fire training, hazardous materials, emergency medical
services, or fire or arson investigation services as described in
Government Code Section 20434).
m. Section 20903 (Two Years Additional Service Credit).
11. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
October 8, 1976. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
12. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
13. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special vaiuations or of the
periodic investigation and valuations required by law.
EXHIBIT 0
7-13
c. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
14. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
15. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. If more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
B.
This amendment shall be effective on the
"
'.
day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RElIlREMENT SYSTEM CITY OF CHULA VISTA
"~ :"
,..l
BY
LORI MCGARTlAND, CHIEF
EMPLOYER SFRVICES DIVISION
PUBLIC EMPI,..OYEES' RETIREMENT SYSTEM
BY , ,
PRESIDING OFFIC~R
-
Witness Date
Attest:
Clerk
AMENOMENT ER# 0195
PERS-CON-702A (Rev, 10\05)
EXHIBIT D
7-14
RESOLUTION NO. 2007-
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA TO APPROVE AN AMENDMENT
TO THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF CHULA VISTA TO PROVIDE
SECTION 20903 (TWO YEARS ADDITIONAL SERVICE
CREDIT) FOR LOCAL MISCELLANEOUS MEMBERS AND
LOCAL SAFETY MEMBERS (POLICE AND FIRE)
WHEREAS, the current California Public Employee Retirement Law allows an early
retirement incentive; and
WHEREAS, Government Code section 20903 provides two years additional CalPERS
service credit to members who retire during a designated period; and
WHEREAS, the City must certify that it is its intention that if any early retirements are
granted after receipt of service credit pursuant to section 20903, that any vacancies created or at least
one vacancy in any position in any department or other organizational unit shall remain permanently
unfilled, thereby resulting in an overall reduction in the workforce of the department or
organizational unit; and
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System by the execution of a
contract, and sets forth the procedure by which said public agencies may elect to subject themselves
and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the
governing body of the public agency of a resolution giving notice of its intention to approve an
amendment to said contract, which resolution shall contain a summary of the change proposed in
said contract; and
WHEREAS, the following is a statement of the proposed change: "To provide Section
20903 (Two Years Additional Service Credit) for local miscellaneous members and local safety
members."
l:\Altorney\RESOIAMENDMENTS\CaIPERS Service Credi15_10-16-07.doc
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Resolution No. 2007-
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista
does hereby give notice of intention to approve an amendment to the contract between the Board of
Administration of the California Public Employees' Retirement System and the City Council ofthe
City of Chula Vista to provide Section 20903 (two years additional service credit) for local
miscellaneous members and local safety members (police 'and fire). A copy of the amendment is
attached and marked as Exhibit D, and by this reference is made a part of the resolution.
Presented by
Approved as to form by
ik~1\~~~
Ann Moore
City Attorney
Marcia Raskin
Director of Human Resources
J:\Allorn~y\RESO\AMENDMENTS\CaIPERS Service Cret.lilS_10-16-07 .doc
7-16
ORDINANCE NO.
ORDINANCE OF THE . CITY OF
CHULA VISTA AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AND THE BOARD OF ADMINISTRATION OF
THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
The City Council of the City Of Chula Vista does ordain as follows:
Section 1.
That an amendment to the contract between the City Council of the City Of Chula Vista and
the Board of Administration, California Public Employees' Retirement System is authorized
by this Ordinance. A copy of the amendment is attached and marked as Exhibit D, and by
this reference is made a part of the Ordinance.
Section 2.
The Mayor of the City of Chula Vista is hereby authorized, empowered, and directed to
execute the amendment for and on behalf of the City.
Section 3.
This Ordinance shall take effect 30 days after the second reading of the Ordinance, which
will be at least 20 days after the date of adoption of the Resolution of intention. The
Ordinance will be published at least two weeks prior to the adoption of the final documents
and circulated in the City of Chula Vista.
NOW, THEREFORE BE IT FURTHER that this ordinance shall take effect and be in
full force thirty (30) days after its adoption.
Presented by:
Approved as to Form by:
Marcia Raskin
Director of Human Resources
~'(}i ~'\\\ \'\:A ~\J\
Ann Moore
City Attorney
J:\Attomey\Ordinance\Golden Handshake_10-16-07.doc
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RESOLUTION NO. 2007-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA TO APPROVE THE ADOPTION OF THE
MEDICAL INCENTIVE PROGRAM FOR ELIGIBLE
EMPLOYEES WHO RETIRE UNDER THE TWO YEARS
ADDITIONAL SERVICE CREDIT PROVISION
WHEREAS, to encourage as many eligible employees as possible to retire before the end of
the calendar year, in addition to the Two Years Additional Service Credit, the City is offering a
medical incentive program, under the City's Retiree Health Plan, to employees who choose to retire
during the 90-day window; and
WHEREAS, employees who retire between November 8, 2007, and December 31,2007, will
have their Kaiser or PacifiCare medical insurance premium covered by the City for all of
calendar/plan year 2008 and 2009; and
WHEREAS, employees retiring January 1,2008, through February 5, 2008, will have their
medical insurance premium covered for the remainder of calendar/plan year 2008; and
WHEREAS, employees are required to pay any and all medical insurance premiums for any
eligible dependents; and
WHEREAS, non-benefited, unclassified hourly employees are not eligible for the medical
incentive program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista
does hereby approve the adoption of the Medical Incentive Program for eligible employees who
retire under the two years additional service credit provision.
Presented by
Approved as to form by
<~fQ(\\\\,\~~ \~,
Ann Moore
City Attorney
Marcia Raskin
Director of Human Resources
J:\AttomeyIRESO\AGREEMENTS\MedicaJ Incentive ?rogram_lD-I6-07.(joc
7-18