HomeMy WebLinkAboutRes No. 09-24 - Amnd Res 08-02 - Retiree Svc Stipend Pgrm �'�� CITY OF PALM DESERT
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- CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: Consideration of Resolution No.09- 24 amending Resolution No.
08-02 Retiree Service Stipend Program for Employees.
DATE: April 23, 2009
CONTENTS: 1) Resolution No. 09-24
SUBMITTED BY: John Wohlmuth, City Manager
Recommendation:
Waive further reading and adopt Resolution No. 09-24 amending Resolution No. 08-02
Retiree Service Stipend Program for Employees.
Discussion:
At its meeting of March 26, 2009, the City Council adopted Resolution No. 09-16 stating
its intent to amend the City's contract with CaIPERS to provide eligible employees with
an opportunity to receive two-years additional service credit toward early retirement.
One factor affecting employees' decisions about whether or not they should take early
retirement is their eligibility for the City's Retiree Health Service Stipend Program. The
program requires a minimum of ten (10) years of continuous City service. Some
employees have enough CaIPERS credit to retire but don't meet the ten-year
requirement for the City's retiree health reimbursement program.
Staff is recommending an amendment to the Retiree Service Stipend Program to allow
more employees to take advantage of the early retirement program by providing credit
of up to two years of additional service in order to meet the minimum required to receive
a stipend. The guidelines are as follows:
Staff Report: Retiree Service Stipend Amendment— Early Retirement
Submitted by: John Wohlmuth, City Manager
Date: April 23, 2009
Page 2
1. Employee must retire during the 2009 Early Retirement period set by the City
Council (May 1 —August 15, 2009).
2. Employee must have a minimum of eight (8) years of continuous City service in
order to benefit. Employees with more than ten (10) years of service will receive no
additional benefit. Additional service credit may be used ONLY to meet the
minimum qualification for a 50% stipend, and in no case will the granting of
additional service credit result in an employee receiving greater than a 50% stipend.
Approval of this recommendation will result in additional early retirements resulting in
significant salary savings.
Financial Impact:
The potential fiscal impact is $42,730 if all eligible employees take advantage of the
program. This cost is offset by significant salary savings.
Submitted by:
I
O N O L UTH PAUL GIBSON
Ci Manager Finance Director
CITY COUNCILAQ't'ION
APPROVED �� DEIVIED
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RESOLUTION NO. 09 - ��
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, AMENDING
RESOLUTION NO. 08-02, RETIREE SERVICE STIPEND
PROGRAM FOR EMPLOYEES AND MEMBERS OF THE
CITY COUNCIL.
WHEREAS, The City's Labor Negotiator has met and conferred with the Palm
Desert Employees Organization on the terms of a Memorandum of Understanding;
WHEREAS, the parties met and consulted in the matter of revising the retiree
health stipend program established in Resolution 08-02; and
WHEREAS, this agreement changes the terms of the program adopted by
Resolution 08-02 for employees who retire during the early retirement period designated
by the City Council for 2009;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert, California, that the Retiree Service Stipend Program is amended as follows:
SECTION II: Eligibility
Employees and Members of the City Council who began their service prior to December
31, 2007:
8. Employees who elect to retire within the parameters of the City's 2009
Early Retirement Program, and who receive two years of additional
service credit under Government Code Section 20903, may be credited
with no more than two years of additional service credit for the purpose of
meeting the minimum ten years of service requirement. Such credit may
be used only for the purpose of ineeting minimum service requirements
and in no case shall it provide a retiree with greater than the minimum
RESOLUTION NO. 09-�/_
50% service stipend. Employees with less than eight or more than ten
years of actual City service shall receive no benefit from this allowance.
PASSED, APPROVED, AND ADOPTED this day of Apri1, 2009, by the City
Council of the City of Palm Desert, California, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT SPIEGEL, MAYOR
ATTESTED:
RACHELLE KLASSEN, CITY CLERK
CITY OF PALM DESERT
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