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Consider adopting an ordinance to implement a second retirement tier pursuant to Section 21353 - 2% @ 60 retirement formula for future local miscellaneous members and Section 21369 - 2% @ 55 retirement formula for future county peace officers, and the Certification of Final Action of Governing Body
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Published Notice Required? Yes ____ No __X_
Public Hearing Required? Yes _X__ No ____
DEPARTMENTAL RECOMMENDATION:
Staff recommends the Board of Supervisors consider adopting:
1. An ordinance to implement a second retirement tier pursuant to Section 21353 - 2% @ 60 retirement formula for future local miscellaneous members and Section 21369 - 2% @ 55 retirement formula for future county peace officers (Attachment A); and
2. The Certification of Final Action of Governing Body (Attachment B).
SUMMARY/DISCUSSION:
County retirement costs are expected to increase substantially over the next six fiscal years based on CalPERS' actuarial estimates. On June 29, 2010, the Board of Supervisors approved Resolution 2010-158 which declared the Board's intent to adopt lower retirement tier formulas for future County employees in an effort to contain future retirement costs.
On March 13, 2012, the proposed ordinance to amend the contract between the Solano County Board of Supervisors and the Board of Administration of the California Public Employees' Retirement System went before the Board of Supervisors. The applicable Memoranda of Understanding, Imposed Terms and Conditions of Employment, and Personnel and Salary Resolution provide for second retirement tiers of 2% @ 60 for future miscellaneous members and 2% @ 55 for future safety members. The County has satisfied all the obligations required for the Board of Supervisors to adopt and implement the ordinance and recommends adoption of the ordinance.
FINANCIAL IMPACT:
There will be no immediate impact to the County's employer rate with CalPERS. Decreases in the CalPERS employer rate will occur as employees are hired into the second retirement tiers. Based on CalPERS' actuarial estimates, the County's cost to fund the miscellaneous and safety retirement plans will ultimately decrease by 4.0% and 2.1%, respectively.
ALTERNATIVES:
The Board could choose not to adopt the Ordinance. However, staff does not recommend this alternative, since this contract amendment is being recommended in an effort to contain future retirement costs. Additionally, all the MOU's and Imposed Terms and Conditions of Employment, as well as the Personnel and Salary Resolution include language providing for second retirement tiers for future retirement plan members.
OTHER AGENCY INVOLVEMENT:
The Department of Human Resources consulted with CalPERS and the County Administrator's Office.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION