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HomeMy WebLinkAboutReso 2009-161RESOLUTION NO. 2009-161 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT PURSUANT TO GOVERNMENT CODE SECTION 20903 FOR ALL LOCAL MISCELLANEOUS AND ALL LOCAL PUBLIC SAFETY POLICE, MEMBERS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) WHEREAS, in an effort to significantly reduce the fiscal year 2010/2011 general fund budget by reducing the number of benefited employees throughout the organization, staff is proposing that Council grant another Two Years Additional Service Credit for all Local Miscellaneous and all Local Public Safety Police and provide for a limited medical incentive program for those that retire during the prescribed 90-day window period; and WHEREAS, staff is proposing Council to adopt this Resolution offering this benefit to all Local Miscellaneous and all Public Safety Police members effective July 14, 2009; and WHEREAS, on October 16, 2007, the City Council of the City of Chula Vista approved a Resolution of Intention to provide Two Years Additional California Public Employees Retirement System (Ca1PERS) Service Credit for Loca] Miscellaneous members and Local Safety members (Police and Fire); and WHEREAS, an Emergency Ordinance was adopted on November 6, 2007; and and WHEREAS, sixty-two (62) employees took advantage of this early retirement incentive; WHEREAS, on April 22, 2008, the Council approved a second Resolution of Intention to provide the same Ca1PERS benefit to all Local Miscellaneous employees and a limited, specific list of classifications in Police and Fire management; and WHEREAS, eighteen (18) employees took advantage of the early retirement opportunity; and WHEREAS, on December 16, 2008, the Council approved a third Resolution of Intention to provide the same Ca1PERS benefit to all Local Miscellaneous and Local Public Safety (Police) employees in all departments of the City; and and WHEREAS, thirty-four (34) employees took advantage of this eazly retirement incentive; WHEREAS, numerous efforts are being implemented to reduce expenditures in fiscal year 2010/2011; and Resolution No. 2009-161 Page 2 WHEREAS, it is recommended that the City offer another Two Yeazs Additional Service Credit pursuant to Government Code section 20903 for all Local Miscellaneous and Local Safety Police members, who retire during the designated period of July 15, 2009 to October ]2, 2009; and WHEREAS, the City is also proposing a limited, two-tiered medical incentive program; and WHEREAS, if an employee takes advantage of the two-yeaz additional service credit, the City will pick up the cost of the health care premium for Employee Only for two (2) calendaz yeazs; and WHEREAS, if an employee had already reached the 30-yeaz maximum years of service for safety employees and therefore cannot take advantage of the two-yeaz additional service credit, the City will provide cost of health care premium for Employee Only for four (4) calendaz years; and WHEREAS, the City is offering a medical incentive to encourage as many employees as possible to consider retiring this fiscal year in an effort to help minimize or prevent pending layoffs and to reduce personnel costs; and WHEREAS, Government Code section 20903 provides Two Yeazs Additional Ca1PERS Service Credit to members who retire during a designated period; and WHEREAS, the City must certify that if any early retirements aze granted after receipt of service credits pursuant to Section 20903, it is the City's intention that any vacancies created or at least one vacancy in any position in any department or other organizational unit remain permanently unfilled, thereby resulting in an overall reduction in the workforce of the department or organizational unit; and WHEREAS, an eligible employee may apply for the benefit during the designated window period, which cannot be less than ninety days, nor more than 180 days; and WHEREAS, staff is proposing a ninety day (90) window period from July 15, 2009 - October 12, 2009; and WHEREAS, to be eligible, the following criteria must be met: • member must have at least five yeazs of Ca1PERS service credit; ^ member must be employed for at least one day during the designated period; ^ member must retire during the designated period; • member cannot receive credit under this section if member is receiving any unemployment insurance payments; • if a retired member subsequently reenters membership, additional service credit is forfeited; and Resolution No. 2009-161 Page 3 WHEREAS, in addition to the Two Yeazs Additional Service Credit, staff is proposing a medical incentive program, under the City s Retiree Health Plan. Under this program, the City will pay the cost of the medical insurance premium for Employee Only coverage as follows: Retiring with 2 Additional Service Credit Medical Incentive for 2 calendar years Retiring without 2 Additional Service Credit Medical Incentive for 4 calendar years; and WHEREAS, upon retirement, employees are required to enroll in Medicaze Part A and Part B once they become eligible. Any medical insurance premiums for any eligible dependents will be the employee's responsibility; and WHEREAS, non-benefited, unclassified hourly employees aze not eligible for the medical incentive program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby grant a period for two years additional service credit pursuant to Government Code section 20903 for all Local Miscellaneous and all Local Public Safety Police members of the California Public Employees Retirement System (Ca1PERS). Presented by %~ 2--. Kelley on Direct f Human Resources Approved as to form Resolution No. 2009-161 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 14th day of July 2009 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: McCann V` Cheryl Cox, ayor ATTEST: w 0 Donna R. Norris,~CMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Noms, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2009-161 was duly passed, approved, and adopted by the City Council at a regulaz meeting of the Chula Vista City Council held on the 14th day of July 2009. Executed this 14th day of July 2009. Donna R. Norris, M ,City Clerk