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COUNTY OF SAN MATEOInter-Departmental Correspondence |
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Employee and Public Services |
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DATE: |
May 23, 2003 |
BOARD MEETING DATE: |
June 10, 2003 |
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TO: |
Honorable Board of Supervisors |
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FROM: |
Mary Welch, Director, Employee and Public Services |
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SUBJECT: |
Implementation of Government Code Section 31676.16 for Purposes of Enhancing Retirement Benefits for General Members of the County Retirement System |
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Recommendation |
Adopt a resolution terminating the applicability of Government Code Section 31676.1 to specified general members of the County retirement system and making Government Code Section 31676.16 applicable to specified general members of the County retirement system. |
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Background |
Between November 2002 and May 2003, this Board adopted resolutions implementing Memoranda of Understanding with all employees organizations representing general retirement plan employees. In addition, this Board adopted resolutions covering all unrepresented general retirement plan employees. These Memoranda of Understanding and resolutions included a provision that the County would implement a 2%@55 enhanced retirement benefit effective September 2003, or earlier if possible. It further provided that effective March, 2005, the County will implement the 2%@55.5 benefit. These enhancements are only applicable to active or deferred general members who are in Plans 1, 2, or modified Plan 2 (also known as Plan 4).
Implementation of both retirement improvements was contingent on agreement by all unions representing employees in the General Retirement Plan or on enactment of legislation enabling implementation of such benefits by individual representation unit. Agreement has now been reached with all unions representing employees in the general retirement plan. The implementation of 2%@55.5 further is contingent on enactment of legislation enabling implementation of the 1/120 employee contribution design. That legislation has been introduced but not yet enacted.
General employees will share in the cost of the improved benefit through payroll deductions as follows: 1% effective August 31, 2003 with an additional 1% effective August 29, 2004 and an additional 1% effective March 13, 2005. |
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Discussion |
The resolution presented for your consideration and adoption does the following for members of the general retirement Plans 1, 2 and modified Plan 2: (1) terminates the existing schedule of retirement benefits effective July 20, 2003 (the last pay period prior to September 1, 2003); (2) makes the new schedule of retirement benefits (2% at 55) become effective July 20, 2003; (3) makes the new formula for calculation of retirement benefits applicable to all general service credit earned back to the date of employment with the County; (4) implements the employee cost sharing contribution requirement set forth above and (5) allows certain employees whose benefits are lower under 2% at 55 to elect at the time of retirement that their retirement be calculated under the current formula and entitles those employees to a refund of cost sharing contributions. |
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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. |
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Fiscal Impact |
Estimated cost for this enhanced retirement benefit is $20.1 million total for Fiscal Years 2003-04 and 2004-05. |
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cc: John Maltbie, County Manager |
Sid McCausland, CEO, SamCERA
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