HomeMy WebLinkAboutReso 22-16 Early Retirement ProgramRESOLUTION NO* 2246
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
AUTHORIZING THE CITY MANAGER TO IMPLEMENT THE EARLY
RETIREMENT MANAGEMENT PROGRAM FOR THE FISCAL YEAR 2016/17
ity of Morro Bay, California
WHEREAS, the City Council of the City of Morro Bay ("City") appreciates it employees
and their outstanding service to the community; and
WHEREAS, the City Council previously offered a retirement incentive program to certain
eligible employees for the fiscal years 2009/10 through 2012/13; and
WHEREAS, the City now desires to offer a retirement incentive program analogous to the
retirement incentive program previously offered by the City; and
WHEREAS, City staff has developed an Early Retirement Management Program
("ERMP") for consideration by City Council, which will provide eligible employees with 20% of
their base salary then in effect as a retirement incentive in exchange for their separation/ retirement
From the City; and
WHEREAS, employee participation in the ERMP would be purely voluntary; and
WHEREAS, there are twenty-eight City employees who meet the proposed ERMP
eligibility requirements, and staff believes approximately ten of these employees would be
interested in participating in the ERMP; and
WHEREAS, participation in the ERMP would require the employee part
icipants to
execute a standard release agreement, which once effective, would be irrevocable; and
WHEREAS, City staff has determined that it is in the best fiscal interests of the City to
allow eligible employees to elect to participate in the -11,
NOW, THEREFORE, BE IT RESOLVED, by the City Council, City of Morro Bay,
California, as follows:
Section 1. The ERMP is hereby adopted, -and the City Manager is authorized to implement
the ERMP for the fiscal year 2016/17.
Section 2. The City Manager shall be authorized to execute release agreements with
participating employees on behalf of the City in order to carry out implementation of the ERiviP,
as well as prepare and execute on behalf of the City any other documents needed in order to
implement the ERMP.
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Section 3. An employee of the City must meet the following requirements in order to be
eligible to participate in the ERMP: i) must be eligible to retire, per Ca1PERS requirements of
eligibility for service retirement, which is the Ca1PERS normal age of retirement (at least 50 years
of age) and vested with Ca1PERS (minimum 5 years' service) and ii) must be an active, full-time
Ca1PERS-benefitted employee with continuous employment with the City of at least 5 years as of
the end of the application period for this program (at latest June 15, 2016).
Section 4. The ERMP shall be administered in accordance with and subject to the
following requirements:
a) City employees meeting the required conditions in Section 3 above may apply within the
open application period, which begins April 15, 2016, and ends at 5 p.m. on June 15, 2016
("Participants").
b) Applications submitted before or after the application period will nat be accepted, unless
specifically authorized in writing by the City Manager.
c) Participation in the ERMP is completely voluntary.
d) In order to participate in the ERMP, Participants will be required to execute a standard
employment release agreement pertaining to claims against City related to participation in
the ERMP, as specified in the agreement.
e) Participants must agree to a separation/ retirement date no earlier than October 30, 2016,
and no later than December 30, 2016.
f) Participants complying with the conditions and details of the program will receive 20% of
their base salary then in effect in one of the forms below, as selected by the Participant on
the ERMP application:
i. Lump -sum payment; or
ii. Contribution to existing deferred compensation plan; or
iii. Deposit to City Retirement Health Savings plan.
Section 5. Implementation of .the ERMP shall be subject to the City meeting and
conferring with the City's represented bargaining units pursuant to the requirements of the Meyers-
Milias-Brown Act ("MMBA"), Government Code section 3500 et seq.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 22nd day of March, 2016, on the following vote:
AYES: Irons, Headding, Johnson, Makowetski, Smukler
NOES: None
ABSENT: None
- O� _ a
J IRONS, Ma or
ATTEST:
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ANA SWANSON, City Clerk
01181.0004/289992.1