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i <br />city -f <br />Eli REQUEST FOR ACTION <br />Rive <br />TO <br />ITEM NUMBER <br />City Council <br />3.4. <br />AGENDA SECTION <br />MEETING DATE <br />PREPARED BY <br />Consent <br />December 13, 2010 <br />Lauren Wipper, Human Resource <br />Representative <br />ITEM DESCRIPTION <br />REVIEWED By <br />Resolution Authorizing PERA Phased Retirement Option <br />Lori Johnson, City Administrator <br />REVIEWED BY <br />ACTION REQUESTED <br />Approve the attached resolution authorizing the Public Employees Retirement Association (PERA) <br />Phased Retirement Option and designating the Human Resource Representative to manage this program. <br />BACKGROUND/DISCUSSION <br />Legislation passed in 2009 allows certain eligible employees the opportunity to begin receiving a PERA <br />pension without formally retiring. Called the Phased Retirement Option, eligible employees include those <br />age 62 or older that meet all other requirements for a pension from PERA and have worked a minimum <br />of 1,044 hours in each of the prior five years. Street Superintendent Phil Hals has asked to begin Phased <br />Retirement in March 1, 2011. <br />Under Phased Retirement, an employee must agree to reduce their hours worked by at least 25 percent, <br />and not exceed 1,044 hours worked per year. The employee and employer must file a Phased Retirement <br />Option Agreement with PERA. This agreement is valid for one year and may be renewed annually for a <br />total of no more than five years. <br />The administration of benefits under Phased Retirement is left to the City's discretion. City <br />Administrator Lori Johnson and I have discussed this and feel that it is reasonable to allow employees <br />working 20 hours per week under the Phased Retirement Option to continue benefits on a prorated basis. <br />Benefits under this option include participation in the Flexible Benefits Plan and vacation, sick, and <br />holiday leave. I have confirmed with our insurance plan administrators that, where necessary, our plans <br />can be amended to allow employees participating in the Phased Retirement Option to be eligible for <br />coverage. <br />The City Council is being asked to approve the attached resolution which designates the Human <br />Resource Representative to enter into Phased Retirement Agreements with eligible staff and manage the <br />details of the Phased Retirement Option program. <br />FINANCIAL IMPACT <br />The Phased Retirement Option is a cost savings to the City in both salary and benefits. <br />