ITEM:CONSENT CALENDAR

 

2.

CONSIDER ADOPTION OF RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO THE DISTRICTíS PUBLIC EMPLOYEES RETIREMENT SYSTEM CONTRACT PROVIDING ONE-YEAR FINAL COMPENSATION

 

Meeting Date:

May 19, 2008

Budgeted:The cost will be included in the FY2008-2009 Budget

 

 

 

From:

Darby Fuerst,

General Manager

Program: Personnel

Line Item No.: Retirement

 

 

Prepared By:

Cynthia Schmidlin

Cost Estimate:$29,252

 

General Counsel Approval:N/A

Committee Recommendation: The Administrative Committee reviewed this item on

May 13, 2008, and recommended approval.

CEQA Compliance:N/A

 

SUMMARY:The Districtís current labor agreements with its three bargaining units include modification of the Retirement Contract with the California Public Employeesí Retirement System (CalPERS) to provide One-Year Final Compensation, effective July 1, 2008.The CalPERS formal contract amendment process requires that the governing body of an agency first approve a resolution stating its intention to amend its contract.Then, at a meeting 20 or more days later, it must approve a second resolution amending the contract.This is the first step of that process. District Resolution 2008-X, (Exhibit 2-A), and the official CalPERS Resolution of Intention form, (Exhibit 2-B), and the Proposed Amendment to the Districtís CalPERS contract (Exhibit 2-C) are attached.

 

RECOMMENDATION: Authorize approval of Resolution 2008-X, (Exhibit 2-A) stating the Districtís intention to approve an amendment of its Retirement Contract with CalPERS to provide the one year final compensation benefit.

 

IMPACTS TO STAFF/RESOURCES:Amendment of the Districtís Retirement Contract to provide the one year final compensation benefit would cost approximately $29,252 in Fiscal Year 2008-2009.

 

BACKGROUND:In July and August of 2007, the District entered into Memorandums of Agreement with its three bargaining units.These agreements stated that, effective July 1, 2008, the Districtís Retirement Benefits Contract with the CalPERS shall be amended to provide the one year final compensation benefit, pursuant to Government Code section 20042.A 1.4% increase to the Employer cost was estimated in the contract amendment cost analysis performed in May2007.However, this actuarial evaluation was considered accurate only until July 2007.Therefore, a new cost analysis was requested and furnished in March 2008.The current actuarial evaluation indicates that the agreed contract amendment change would result in an increase in the present value of benefits of $274,553 and an increase in the Planís accrued liability of $200,090.†† Costs would be funded by an increase in the Employer Rate of 1.325%.This is slightly less than the amount estimated in the 2007 actuarial evaluation, upon which the Board based its approval of the Retirement Contract changes in the current Memorandums of Understanding.

 

EXHIBITS:

2-A††††† Proposed District Resolution 2008-X

2-B††††† Cal-PERS Resolution of Intention to Approve an Amendment to Contract form

2-C ††† Proposed Amendment to the Districtís CalPERS Contract

 

 

 

 

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