COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Employee and Public Services

DATE:

May 23, 2003

BOARD MEETING DATE:

June 10, 2003

TO:

Honorable Board of Supervisors

FROM:

Mary Welch, Director, Employee and Public Services

SUBJECT:

Implementation of Government Code sections 31664.1 and 31664.2 for Purposes of Enhancing Retirement Benefits for Safety Members of the County Retirement System

Recommendation

Adopt a resolution terminating the applicability of Government Code Section 31664 to specified Safety members of the County Retirement System and making Government Code Section 31664.2 applicable to specified Safety members of the County Retirement System effective July 6, 2003, and making Government Code Section 31664.1 applicable to specified Safety members of the County Retirement System effective January 2, 2005.

Background

In a separate agenda item, this Board is being requested to adopt a resolution implementing the Memorandum of Understanding with the Deputy Sheriffs Association. The Board has previously adopted resolutions implementing Memoranda of Understanding with the other employees organizations representing Safety retirement plan employees. In addition, this Board adopted resolutions covering all unrepresented Safety retirement plan employees. These Memoranda of Understanding and resolutions include a provision that the County would implement a 3% at age 55 enhanced retirement benefit effective July 6, 2003. They further provide that effective January 2, 2005, the County will implement the 3% at age 50 benefit. These enhancements are only applicable to active or deferred Safety 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 Safety 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 Safety retirement plan.

Safety employees will share in the cost of the improved benefit through payroll deductions as follows:

1. Employees represented by the Deputy Sheriff's Association shall share in the cost as follows:

· Employees with more than 15 years of County service or who are age 45 or older will contribute 4.5%. This contribution will be phased in with contributions of 2% effective July 6, 2003, an additional 1% effective January 4, 2004 and an additional 1.5% effective January 2, 2005.

· Employees with 5 to 15 years of County service will contribute 3.5%. This contribution will be phased in with contributions of 1.5% effective July 6, 2003, an additional 1% effective January 4, 2004 and an additional 1% effective January 2, 2005.

· Employees with 0 to 5 years of County service will contribute 3%. This contribution will be phased in with contributions of 1% effective July 6, 2003, an additional 1% effective January 4, 2004 and an additional 1% effective January 2, 2005.

2. Employees represented by the Organization of Sheriff's Sergeants and unrepresented public safety management employees in the Sheriff's Office and the Office of the District Attorney shall contribute 2% effective July 6, 2003, an additional 1% effective January 4, 2004, and an additional 2% effective January 2, 2005.

3. Employees represented by the Probation and Detention Association and unrepresented public safety management employees in the Probation Department shall contribute 1.5% effective October 12, 2003, an additional 1% effective January 4, 2004, and an additional 1% effective January 2, 2005.

Discussion

The resolution presented for your consideration and adoption does the following for members of the Safety retirement Plans 1, 2 and modified Plan 2: (1) terminates the existing schedule of retirement benefits effective July 6, 2003; (2) makes the new schedule of retirement benefits (3% at 55) become effective July 6, 2003; (3) makes the next retirement benefit enhancement (3% at 50) effective January 2, 2005, (4) makes the applicable formula for calculation of retirement benefits applicable to all Safety service credit earned back to the date of employment with the County; and (5) implements the employee cost sharing contribution requirement set forth above.

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.

Fiscal Impact

Estimated cost for this enhanced retirement benefit is $9.2 million total for Fiscal Years 2003-04 and 2004-05.

cc: John Maltbie, County Manager
Sid McCausland, CEO, SamCERA