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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Manager’s Office
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DATE:
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June 13, 2011
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BOARD MEETING DATE:
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June 28, 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 County Manager’s Office, Human Services Agency, Probation Department and the Sheriff’s Office.
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BACKGROUND:
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Due to reduced funding levels in FY 2011-2012, departments are proposing the elimination of filled positions in order to balance their budgets. In an effort to decrease the overall impact of these position eliminations, a resolution implementing Government Code Section 31641.04 (granting early retirement) for specific County classifications, will be recommended for your adoption on July 12, 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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Twelve (12) employees representing seven (7) classifications in the County Manager’s Office, Human Services Agency, Probation Department and the Sheriff’s Office 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 12 positions, thereby reducing the likely number of employees at-risk of lay-offs by 12.
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FISCAL IMPACT:
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The cost to grant early retirement to the 12 employees is $349,443.81. Based on the assumption that each one of the 12 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 $911,412.00. This is based on annual salary and benefits at a cost of approximately $1,260,856.00.
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Attachments:
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