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REQUEST FOR COUNCIL ACTION DATE: 10/25/93 ITEM No* maw artme rival Manager Reviewed: Agenda Section: p pp organizational Business Item s r ipt i on: Early Retirement Incentives $agkgrou1. d The 1993 Legislature passed a law authorizing cities to offer an early retirement incentive to their eligible employeese To be eligible, an "ployee must: Have at least 25 years of combined service credit in any State pension plan or be at least age 65 with at least one year of combined credit; Be Immediately eligible upon retirement for an annuity from a defined benefit plants Be at least 55 years old; and a Retire on or after May 17, 1993 , and before January 31, 1994a Under this law the City can make available either or both of two incentive options* opt ion 1: An increase (0925) in the multiplier percentage used to calculate+ the retirement annuity for each year of service up to 30 years; or option : Employer paid hospital, medicali and dental insurance If either .option is offered, it must be available to all employees. option 1 is not available, by law, to Police officers. Where are three employees who are eligible for Option 16 This law also requires a "position specific action of the governing body"" in order to hire a replacement for a person who retires under this optional program.y The intent is for cities to examine the need to refill each p os it ion* However,, the law leaves this judgment to the local Council and city staff. Ater at vet i The Council could authorize the mplementat� nf either, both, or neither of the early. retirement incentives e Einancial Implication Option 1 has no direct costmpaotn the pity option 2 costs defend on the m specific e loyee who is retiring (from zero to $35, 000+ dollars p p have been for 1 0 years o f insurance coverage) No funds h budgeted for g this item.