COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

 

DATE:

March 31, 2010

BOARD MEETING DATE:

April 13, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

David S. Boesch, County Manager

SUBJECT:

Early Retirement Cost

 

RECOMMENDATION:

Accept actuarial certification of cost to grant early retirement option with one year of additional service credit for certain classifications.

 

BACKGROUND:

For the upcoming budget year, departments are proposing the elimination of filled positions in order to meet budget targets for next year. To decrease the overall impact of these position eliminations, a resolution implementing Government Code Section 31641.04 for specific County classifications, will be recommended for your adoption on April 27, 2010.

 

DISCUSSION:

Pursuant to Government Code Sections 31516 and 7507, the actuarial certification of the cost to provide the early retirement option is being presented for your review at least two weeks prior to the adoption of the resolution.

 

Fourteen (14) employees in seven classifications have elected early retirement option. These employees will receive an additional one-year of service credit in the calculation of their pension benefits. The increase in pension benefits will vary person to person but past calculations have resulted in approximately a 3.5% increase.

 

FISCAL IMPACT:

The cost to grant early retirement to the fourteen employees is $529,956. Based on the assumption that each one of the fourteen employees would have worked for one more year if there was no early retirement incentive, there will be a resulting salary and benefits savings of approximately $1,144,659. This is based on annual salary and benefits at a cost of approximately $1,674,615.