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Consider adopting a resolution eliminating the Public Agency Retirement System 2.7% @ 55 Retirement Plan for Non-Safety, at-will Civil Service exempt employees in the Legislative, Executive, and Senior Management Groups who are hired into County service on or after May 4, 2012 and are not covered by the CalPERS 2.7% @ 55 retirement plan
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Published Notice Required? Yes _____ No __X__
Public Hearing Required? Yes _____ No __X__
DEPARTMENTAL RECOMMENDATION:
Staff recommends the Board of Supervisors consider adopting a resolution eliminating the Public Agency Retirement System (PARS) 2.7% @ 55 Retirement Plan for Non-Safety, at-will, Civil Service exempt employees in the Legislative, Executive, and Senior Management Groups who are hired into County service on or after May 4, 2012 and are not covered by the CalPERS 2.7% @ 55 retirement plan.
SUMMARY/DISCUSSION:
On October 1, 2002, the Board of Supervisors adopted a resolution adopting the PARS Trust which included the 2.7% @ 55 Retirement Enhancement Plan for Non-Safety, at-will, Civil Service exempt employees in the Legislative, Executive and Senior Management Groups. This plan provided a supplemental retirement benefit for employees with prior CalPERS service credited under a retirement formula of less than 2.7% @ 55 who retired from the County with a minimum of eight years of service.
In an effort to contain future retirement costs, the County has adopted a 2% @ 60 lower retirement tier for Miscellaneous employees hired on or after May 4, 2012. Staff is recommending elimination of the PARS plan, since retaining the PARS plan would cancel any savings achieved by implementing the lower retirement tier.
FINANCIAL IMPACT:
The County is currently contributing 1.02% of payroll for 139 eligible employees for the PARS Retirement Plan which is equivalent to an approximate annual cost of $161,156. This contribution is adjusted based on actuarial studies, and has ranged from a high of 5.62...
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