Inter-Departmental Correspondence

Employee and Public Services Department


October 8, 2002


October 29, 2002



Honorable Board of Supervisors


Mary Welch, Employee and Public Services Director


Early Retirement in Lieu of Layoffs



Adopt a resolution enacting Section 31641.04 of the Government Code enabling otherwise eligible employees in the classification of Chief Operating Officer in the San Mateo Health Center to select an early retirement option to reduce staff as an alternative to the layoff of employees.



Government Code Section 31641.04 permits members of the County Employees' Retirement System to receive two additional years of service credits toward retirement under conditions established by the Board of Supervisors. This code section was enacted on a broad basis in 1988 as a result of curtailment of services and changes in the manner of services. By invoking this code section the number of layoffs as a result of the cost savings was reduced. Since that time, your Board has periodically adopted resolutions that allowed employees in various departments to select the early retirement option to reduce costs and prevent employees from being laid off as a result of the cost cutting.



As a result of anticipated re-organizational changes that are going to be made, the San Mateo Health Center will be eliminating this position. Exercising an early retirement option will prevent one potential lay-off. We are recommending that the early retirement option be implemented for the classification of Chief Operating Officer in the San Mateo Health Center.


Fiscal Impact

Long term employees who elect this option will benefit by receiving an additional two years of service credit in the calculation of pension benefits, which will increase the pension benefit by approximately 3.5%.


Vision Alignment

This item keeps the commitment of responsive, effective and collaborative government through goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.