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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Manager’s Office
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DATE:
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April 26, 2010
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BOARD MEETING DATE:
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May 11, 2010
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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David Boesch, County Manager
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SUBJECT:
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Early Retirement in Lieu of Layoffs
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RECOMMENDATION:
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Adopt a resolution enacting Section 31641.04 of the Government Code enabling otherwise eligible employees in the classifications of Advisory Systems Engineer, Deputy Probation Officer Series, Housing and Community Development Supervisor, Institution Services Manager, Lead Production Technician, Office Services Supervisor-Confidential, and Probation Services Manager I to select an early retirement option as an alternative to layoffs.
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BACKGROUND:
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Government Code Section 31641.04 permits members of the County Employees’ Retirement System to receive one additional year 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.
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DISCUSSION:
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As a result of organizational changes the Information Services Department, Probation Department, Housing Department and Human Resources Department are eliminating filled positions in the above-identified classifications. Exercising an early retirement option will prevent layoffs within these classifications. We are recommending that the early retirement option be implemented for the classifications identified above.
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Pursuant to Government Code Sections 31516 and 7507, the actuarial certification of cost to provide the early retirement option was presented for your review on April 13, 2010 and County Counsel has reviewed and approved the recommended Resolution as to form.
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The adoption of this resolution contributes to the Shared Vision 2025 outcome of a Collaborative Community by ensuring that government decisions and approach to issues are based around fiscal accountability and concern for future impacts.
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FISCAL IMPACT:
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The cost to grant early retirement to fourteen employees in the above-mentioned classifications 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.
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Long-term employees who elect this option will benefit by receiving an additional one-year 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.
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Cc:
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David Bailey, Chief Executive Officer, SamCERA
Duane Bay, Housing Department Director
Chris Flatmoe, Information Services Director
Stuart Forrest, Chief Probation Officer
Tom Huening, County Controller
Mike Murphy, County Counsel
Donna Vaillancourt, Human Resources Director
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