COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

 

DATE:

January 29, 2009

BOARD MEETING DATE:

February 10, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

   

TO:

Honorable Board of Supervisors

FROM:

David Boesch, County Manager

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 Utility 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.

 

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 four filled Utility Worker 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 Utility 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. The increase in pension benefits will vary person to person. Past calculations have resulted in approximately a 3.5% increase.

 
 

cc:

Mike Murphy, County Counsel
Jean Fraser, Chief of Health Systems
Donna Vaillancourt, Human Resources Director
Dr. Sang-ick Chang, Chief Executive Officer, SMMC
David Bailey, Chief Executive Officer, SamCERA
Tom Huening, County Controller