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ITEM:
CONSENT CALENDAR |
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2. |
CONSIDER ADOPTION OF RESOLUTION 2008-12 AUTHORIZING AN AMENDMENT TO CONTRACT WITH PUBLIC EMPLOYEE RETIREMENT SYSTEM TO CONVERT TO SINGLE HIGHEST YEAR |
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Meeting Date: |
June 16, 2008 |
Budgeted: The cost will be included in the FY 2008-2009 Budget |
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From: |
Darby Fuerst, General Manager |
Program:
Personnel Line
Item No.: Retirement |
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Prepared By: |
Cynthia Schmidlin |
Cost Estimate: $29,252 |
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General Counsel Approval: N/A |
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Committee
Recommendation: The Administrative
Committee reviewed this item on May
13, 2008, and recommended approval. |
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CEQA Compliance: N/A |
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SUMMARY: The District’s current labor agreements with its three bargaining units include modification of the Retirement Benefits Contract with the California Public Employees’ 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. On May 21, 2008, the Board completed the first step of that process. Adoption of this resolution would be the final step. District Resolution 2008-12, (Exhibit 2-A), the official CalPERS Resolution form, (Exhibit 2-B), and the Amendment to the District’s CalPERS contract (Exhibit 2-C) are attached.
RECOMMENDATION: Authorize approval of Resolution 2008-12, (Exhibit 2-A) stating the District’s approval of an amendment of its Retirement Contract with CalPERS to provide the one- year final compensation benefit.
IMPACTS TO STAFF/RESOURCES: Amendment of the District’s 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 District’s Retirement Benefits Contract with 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 May 2007. 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 Plan’s 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.
2-A Proposed District Resolution 2008-12
2-B CalPERS Resolution of Intention to Approve an Amendment to Contract form
2-C Proposed Amendment to the District’s CalPERS Contract
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