3.4. SR 12-13-2010 - Laserfiche WebLink

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