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CC - Item 2L - Early Retirement Incentive Packagei • ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: ANDREW C. LAZZARETTO, CITY MANAG DATE: OCTOBER 24, 2006 SUBJECT: EARLY RETIREMENT INCENTIVE PACKAGE SUMMARY In an effort to better facilitate a reorganization of City operations and responsibilities, discussions with the Assistant City Manager regarding the possibility of taking an early retirement have been initiated. Based on City Council direction and conversations that have occurred to date, an agreement has been reached whereby the Assistant City Manager would retire this year effective December 3, 2006, contingent on the City purchasing him 1.404 additional years of service credit. Staff Recommendation Staff recommends that the City Council authorize the City Manager or his designee to execute an early retirement incentive agreement and any related documentation to finalize the agreement with the Assistant City Manager. ANALYSIS Staff has been working with representatives from Public Agency Retirement Services (PARS) regarding a potential separation incentive package, and such a benefit could be purchased by folding the cost of the additional years of service credit into the City's existing PARS Retirement Enhancement Plan. Based on the Assistant City Manager's years of service, benefits package, and retirement date, purchasing the 1.404 additional years of service credit would increase the City's contribution into PARS by 0.27% per year for a period of 16 years at a total cost of around $95,000. LEGAL REVIEW The City Attorney has reviewed and approved this report. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Sub 'tte by: Oliver Chi Director of Administrative Services APPROVED FOR CITY COUNCIL AGENDA'.