City OKs retirement plan costs
The city approved the estimated cost of providing the Public Employee Retirement System Golden Handshake option during Monday's city council meeting.
The city has contracted with PERS to offer the Golden Handshake option which will provide two years of additional service credit for designated employees who retired within a specified period of time, according to the staff report.
During the June 22 council meeting, the city will be presented with a resolution establishing a window period which will allow miscellaneous and safety classifications to be eligible.
The total cost of the program over a 20-year period is $1.1 million.
The cost is expected to be offset within two years by hiring entry level employees and/or not filling vacancies.
Estimated costs of leaving positions vacant as a result of the retirement program is $885,000.
The cost of paying out leave hours will be about $468,000 making the savings for the 2009-10 fiscal year about $417,000.
The city has contracted with PERS to offer the Golden Handshake option which will provide two years of additional service credit for designated employees who retired within a specified period of time, according to the staff report.
During the June 22 council meeting, the city will be presented with a resolution establishing a window period which will allow miscellaneous and safety classifications to be eligible.
The total cost of the program over a 20-year period is $1.1 million.
The cost is expected to be offset within two years by hiring entry level employees and/or not filling vacancies.
Estimated costs of leaving positions vacant as a result of the retirement program is $885,000.
The cost of paying out leave hours will be about $468,000 making the savings for the 2009-10 fiscal year about $417,000.
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