LAKEPORT — The Lakeport City Council tabled adopting an amendment to increase benefits for retired Lakeport police officers Tuesday night.
According to the Feb. 7, 2006, Lakeport City Council minutes, a memorandum of understanding between the Lakeport Police Officers Association and the City Council was unanimously passed.
The memorandum of understanding is an agreement for working conditions between the City Council and the Lakeport Police Officers Association, Lakeport Finance Director Janet Tavernier said.
In the memorandum of understanding, the City Council agreed to amend its contract with the California Public Employees” Retirement System (CalPERS), by July 31, 2010, to increase benefits for retiring police officers by 1 percent.
Under the current retirement plan, Lakeport police officers can retire at age 50 and begin receiving 2 percent of their salaries for each year a police officer has worked in final compensation.
If the amendment to the contract with CalPERS were adopted, Lakeport police officers will be able to retire at age 50 and begin receiving 3 percent of their salaries for each year a police officer has worked in final compensation.
Adoption of the amendment would cause a fiscal impact of $73,158.06, according to the July 20 City Council staff report, to the city of Lakeport for the 2010-2011 fiscal year.
The employer rate for the current 2 percent at 50 plan is 28 percent, according to the staff report, and the employer rate for the 3 percent at 50 plan will increase to 38 percent if the amendment were adopted.
Nick Franceschine of North Bay Pensions in Sebastopol presented an actuarial study, produced by a CalPERS employee, to the City Council Tuesday night.
The actuarial study outlined the costs of adopting the amendment to increase benefits for retiring police officers by one percent.
In the actuarial study, a Lakeport police officer retiring at the age of 50 with 30 years of experience, under the current plan, would receive 60 percent of his/her salary in final compensation. If the amendment were adopted, the same police officer retiring at the age of 50 with 30 years of experience would receive 90 percent of their salary in final compensation.
Ninety percent in final compensation is the maximum percentage allowed by law.
Under the current two percent at 50 plan, the benefit factor, or final compensation percentage, increases by .14 percent for each additional year worked beyond age 50.
Retiring police officers age 55 and over receive 2.7 percent of their salaries for each year worked in final compensation. Therefore, a retiring police officer age 55 and over would have to work 34 years in order to obtain 90 percent in final compensation.
If the amendment were adopted, a flat rate of 3 percent would account to any retiring police officer age 50 and over. Therefore, a police officer would have to work 30 years in order to receive 90 percent in final compensation, regardless of retiring age.
A retiring police officer at age 50, under the current plan, would have to work 45 years in order to receive 90 percent in final compensation.
The Lakeport City Council was unable to come to an agreement on whether or not to approve or disapprove the amendment Tuesday night.
A special council meeting, open to the public, will take place at 6 p.m. on Tuesday at the Lakeport City Hall.
The City Council will meet with the Lakeport Police Officers Association to further discuss the adoption of the amendment.
Contact Richard Dasher at rdasherjr@live.com.
