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Date: 4/14/2003 <br />Item No: III, A. <br />Department Approval: Manager Approved: enda <br />� Section.- <br />Presentations <br />Item Description: Estimated Workforce and Financial Impact in Offering an Early Retirement <br />Plan <br />Background <br />At the April 7} 20031, City Council Meeting, the City Council directed Staff ' to bring back an <br />estimate of the workforce and financial impact if the City were to offer an earl y retirement plan, <br />At the meeting, Staff presented a Flan summary for the ounciI "s review, followed by a brief <br />discussion. Based on the discussion, Staff has reviewed the Plan which is detailed below. <br />Early Retirement Plan - Proposed <br />To provide for a reduction in the City's overall workforce, Staff is submitting an early retirement <br />plan for council consideration. The Plan would provide incentives to allow employees to retire <br />sooner than planned without compromising their pension benefits. The Plan is detailed below. <br />Employees eligible for "full" retirement within the next 18 months as defined b PE RA and � <br />City's � Personnel Policy; � th <br />ty r'nay elect to tale early retirement during a period A. nl 3 -- Ma <br />31st 003 and would p <br />d agree to retire 1n a planned exit of 3 0 -90 days or as deemed appropriate b <br />the City Manager. In exchange, the employee would receive: <br />1) Full payout of their earned vacation, sick, and compensatory tirne at their current base <br />wage as defined in the City } s Personnel Policy. <br />2) Twelve (12) months of health and dental coverage at the least -costl y covers a plan, sin le- <br />g g <br />or a taxable cash payout of the same value. <br />3} Two (2) months severance at their current base wage. <br />4) Tip to $3,000 in City contribution to PERA for the purposes of maintainin g an employee's <br />to F Y <br />pension benefit at a level that would have occurred had the employee remained employed <br />y <br />with the City, or a taxable cash payout of the equivalent amount. <br />The early retirement plan would be presented in the form of a City ttome y -approved severance <br />agreement to be signed by the employee and City Manager. <br />