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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 13, 2011
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BOARD MEETING DATE:
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April 26, 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 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 listed below 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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To meet reduced budget targets, the Assessor-Clerk-Recorder’s Office, Controller’s Office, Probation Department and the Human Services Agency are eliminating filled positions within their respective departments in the following classifications: Appraiser Series, Auditor-Appraiser Series, Departmental Data Processing Specialist, Deputy Probation Officer Series, Group Supervisor III, Human Services Supervisor – E, Institution Services Manager, Office Assistant Series, Office Services Manager, Probation Services Manager I, Senior Accountant, Social Work Supervisor – E, and Social Worker III. Exercising an early retirement option will reduce the number of layoffs within these classifications. We are recommending that the early retirement option be implemented for the classifications identified above, resulting in 19 employees participating in the program.
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Pursuant to Government Code Sections 31516, 7507, and 316141.04, the actuarial certification of cost to provide the early retirement option was presented for your review on April 12, 2011 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 of early retirement for the 19 employees is $611,340.33. Based on the assumption that each one of the 19 employees would have worked for one more year if there was no early retirement incentive, there will be a net salary and benefits savings of approximately $1.4 million. This is based on annual salary and benefits at a cost of approximately $2 million.
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Long-term employees who have elected 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
Hon. Mark Church, Chief Elections Officer-Assessor-Clerk-Recorder
Stuart Forrest, Chief Probation Officer
Tom Huening, County Controller
Beverly Johnson, Human Services Agency Director
John Beiers, County Counsel
Donna Vaillancourt, Human Resources Director
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