COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Resources Department

DATE:

July 7, 2008

BOARD MEETING DATE:

July 22, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Donna Vaillancourt, Human Resources Director

SUBJECT:

Early Retirement in Lieu of Layoffs

RECOMMENDATION:

Adopt a resolution enacting Section 31641.04 of the Government Code enabling otherwise eligible employees in the classification of Food Services Worker I/II to select an early retirement option as an alternative to layoffs.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

Cost savings measures, including position reductions have been adopted to reduce the structural budget deficit. This action will allow employees to select an early retirement option as an alternative to layoffs.

BACKGROUND:

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.

DISCUSSION:

As a result of organizational changes, the San Mateo Medical Center anticipates eliminating five filled Food Services Worker I/II positions. Exercising an early retirement option will prevent lay-offs. We are recommending that the early retirement option be implemented for the classification of Food Services Worker I/II.

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%.