CalPERS Golden Handshake

Document Sample
CalPERS Golden Handshake Powered By Docstoc
					                                CalPERS Golden Handshake

Government Code Section 20904 allows school employers to offer the Golden Handshake (2 year
retirement incentive) to members of CalPERS. The 2 year incentive will add 2 years of additional service
credit to the employees’ CalPERS account at the time of retirement. This “does not” increase the
member’s age. There is currently no sunset date for this section of the law.

Employer Requirements:

    1.       Must discuss cost of providing this benefit at a public meeting at least 2 weeks prior to
             adoption of Resolution per Government Code Section 7507.

    2.       Adopt Board Resolution (use sample provided)
             a) Must adopt sample resolution, word for word
             b) Identify window period of time in which employees must retire.
                        1) must be at least 90 days and no more than 180 days
                        2) window must begin after adoption of resolution by Board
             c) Designate individual job classifications (i.e., Office Specialists) or organizational units
                (i.e., Business Office) eligible or “all eligible miscellaneous employees” if offering to all
                classifications,
                        1) Cannot be based on employee organizations (bargaining unit) or
                            unrepresented groups (confidential employees)
             d) No additional eligibility requirements or criteria may be added beyond what is stated in
                G.C. 20904

    3.       Must demonstrate a cost savings over a period of time. The entire group (as a whole) must be
             a cost savings. Or, result in an overall reduction in the workforce of at least 1% of the
             designated job classifications. There are no specific forms that must be submitted to SBCSS
             or CalPERS to show the cost savings. This information may be required for your auditors.

    4.       District may decide on number of years for determining cost savings.

    5.       Must pay Present Value cost of program and Administrative fees.

    6.       Forms must be forwarded to the County Office, Retirement Services, to allow sufficient time
             for processing prior to the first day of the window period. A copy of the Resolution may be
             emailed or faxed to get the process started.

    7.       Required forms:
                     Certification of Compliance with Government Code Section 7507 (PERS-CON-12C)
                     Cost Calculation Information (PERS-CON-3)
                     Sample Board Resolution
                     Certification of Governing Board’s action (PERS-Con-12B)
                     List of eligible employees (PERSGHLIST) due at close of window period

Employee Requirements:

    1.       Must be eligible to retire without the additional 2 years and sick leave
             a) age 50 with at least 5 years of service

    2.       Must retire within the designated window period
             a) cannot retire on the first day of the window period
             a) must be in current employment status
CalPERS Golden Handshake
Page 2


Retirement Services

   1.      Review documents from district to ensure all eligibility requirements have been met

   2.      Prepare County Resolution and Certification of Compliance with Government Code Section
           20904 entering the district’s window period and eligible classifications

   3.      Forward to Superintendent for signatures

   4.      Upon return of signed documents, complete Adoption date and Attest information on both
           forms.

                        Adoption date and County Superintendent’s signature must be prior to the first
                        day of the window period

   5.      Complete the PERS-CON-12B, Certification of Governing Body’s Action

   6.      Complete the PERS-CON-12C, Certification of Compliance with Government Code Section
           7507

   7.      Forward items #1 – 4 to CalPERS

Payment:

   1.      CalPERS will send invoices for Administrative fees and cost to County Superintendent

   2.      Retirement Services will forward invoices to the district CBO for payment

   3.      Payment can be made in 1 lump sum or 4 semi-annual payments

   4.      Administrative fee is $10 per employee and must be paid with lump sum payment or first
           semi-annual payment

Post Retirement Employment Restrictions:

   Retirees may work up to 960 hours per fiscal year per Government Code Section 21229.
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Employer Services Division
Public Agency Contract Services
(888) CalPERS (225-7377)


                           TWO YEARS ADDITIONAL SERVICE CREDIT
                                      Section 20904

        PROCEDURES FOR CALCULATION OF ESTIMATED EMPLOYER COST


For County School members, the cost of providing the two years additional service credit
is calculated based on the member's annual reportable compensation and the
appropriate cost factor based on the member’s age at retirement date.

The employer cost may be estimated as follows:

1.    Determine all individuals who meet the minimum eligibility for retirement and who
      are employed in the designated classification or organizational unit.

2.    Determine the annual pay rate for each person. "Pay Rate" indicates that amount of
      compensation a member is paid for a full unit of time. Always use the member's
      FULL TIME pay rate.

3.    Determine the age at retirement date for each person and locate the appropriate
      cost factor.

4.    Multiply the annual pay rate by the cost factor.


                                         2% @ 55 formula

                                      Ages           Cost Factor

                                      50-54                0.42

                                      55-59                0.57

                                      60-64                0.59

                                      65+                  0.54




NOTE:        In addition, there is a $10.00 valuation fee for each member who retires during
             the designated period and receives the additional service credit.




PERS-CON3 Co. Schs. (Section 20904)
(Rev. 2/06)
CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) 225-7377




                       CERTIFICATION OF COMPLIANCE WITH
                             GOVERNMENT CODE SECTION 7507




I hereby certify that in accordance with Section 7507 of the Government Code the future annual
costs as determined by the System Actuary have been made public at a public meeting of the
Superintendent of the _________________________________________________________
                                                      (district name)
on ___________________ which is at least two weeks prior to the adoption of the Resolution.
              (date)




________________________                  _____________________________________
Date                                      Clerk/Secretary

                                           ____________________________________
                                                            Title




PERS-CON-12C
CO613 (Rev. 12/92)
                            -Sample Board Resolution-


                                 PERS GOLDEN HANDSHAKE


WHEREAS, the contract between the San Bernardino County Superintendent of Schools and
the Board of Administration of the Public Employees’ Retirement System was amended on
January 28, 1988, to provide Government Code Section 20904 (Two-Years Additional Service
credit) for miscellaneous members, and

WHEREAS, the (name of district) elects to become subject to Government Code Section
20904 due to impending curtailment of, or change in the manner of performing service, and

WHEREAS, the intention at the time Section 20904 becomes operative is that the retirements
under this section will either: (1) result in a net savings to the district, or (2) result in an overall
reduction in the work force of the organizational unit.

NOW THEREFORE, BE IT RESOLVED, that the Governing Board of the (name of district)
does hereby request the San Bernardino County Superintendent of Schools to adopt a resolution
to provide the benefits of Government Code Section 20904 to employees in the classification of
(list classifications) who retire within the designated window period, (date) through (date).

Adopted and approved this _______ day of ______________.
CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420




                   CERTIFICATION ON GOVERNING BODY’S ACTION



I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by
the ___________________________________________ .
             (district name)


on ________________________.
                (date)




                                         _____________________________________
                                         Clerk Secretary


                                         _____________________________________
                                         Title




(County Schools)
PERS-CON-12B (rev. 1/96)
                                                                                                   LARRY WALKER
                                                                                                  Auditor/Controller-
                                                                                                       Recorder

                              CalPERS Two Years Additional Service Credit


Employer Name:               ______________________________________________________________________

Designated window period: ______________________________________________________________________


The following employees have retired during the designated window period (Please print or type):


Name                                         SSN                                 Position Title

______________________________               _______________________             ____________________________

______________________________               _______________________             ____________________________

______________________________               _______________________             ____________________________

______________________________               _______________________             ____________________________

______________________________               _______________________             ____________________________

______________________________               _______________________             ____________________________

______________________________               _______________________             ____________________________

______________________________               _______________________             ____________________________


I certify the employees listed above are eligible to receive the additional service credit pursuant to Government Code
Section 20904 and none of those listed have applied for unemployment insurance payments during the designated
period.


Name (print):     _____________________________________________________

Signature:        _____________________________________________________

Title:            _____________________________________________________

Telephone:        ___________________________

Date:             ___________________________



(PERSGHLIST)