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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Manager’s Office
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DATE:
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February 28, 2011
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BOARD MEETING DATE:
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March 15, 2011
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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 S. Boesch, County Manager
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SUBJECT:
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Early Retirement Cost
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RECOMMENDATION:
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Accept actuarial certification of cost to grant early retirement option with one year of additional service credit for certain classifications within the Information Services Department and the Human Services Agency.
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BACKGROUND:
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This fiscal year, departments are proposing the elimination of filled positions in order to balance their budgets. 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 March 29, 2011.
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DISCUSSION:
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Pursuant to Government Code Sections 31516, 7507 and 316141.04, 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.
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Six (6) employees in five (5) classifications have elected the 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.
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These early retirements will result in the elimination of six positions, thereby reducing the number of employees at-risk of lay-offs by six.
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FISCAL IMPACT:
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The cost to grant early retirement to the six employees is $174,751.28. Based on the assumption that each one of the five 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 $655,276. This is based on annual salary and benefits at a cost of approximately $830,027.
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Attachments:
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