pages: CityCouncil/2009-02-03.pdf, 4
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CityCouncil | 2009-02-03 | 4 | a 3% at age 50 formula for public safety employees. Councilmember Matarrese requested an explanation of the formulas. Mr. Milligan stated pensions are based on years of service multiplied by a certain percentage and final compensation; the percentage varies by age; the highest level of benefits is accrued at age 63; the number of years of service continues to increase after 63; public safety benefits cap at 90% of compensation. Mayor Johnson inquired whether a miscellaneous employee would get 40% of final compensation after working twenty years and reaching age 55, to which Mr. Milligan responded in the affirmative. Councilmember deHaan inquired whether benefits are calculated on the highest one year or three year compensation. Mr. Milligan responded one year; stated bonuses and overtime are not included. Councilmember Matarrese inquired whether the City funds any investment income shortfall, to which Mr. Milligan responded in the affirmative. Councilmember Tam stated the 1985 investment return was 35.4%; inquired whether CalPERS offsets when earnings are higher and cities contribute less. Mr. Milligan responded in the affirmative; stated CalPERS has always had a smoothing mechanism; CalPERS reevaluated the asset moving policy in 2001 and put in a strengthened asset moving policy; CalPERS has the highest level of smoothing used in defined benefit pension plans. Mayor Johnson inquired whether contributions are based on a percentage or dollar figure, to which Mr. Milligan stated contributions are a percentage of pay. Mayor Johnson inquired how much the City pays in contribution for this Fiscal Year, to which Mr. Milligan responded 13.18% of pay. Mayor Johnson inquired what would be the dollar amount. Mr. Milligan responded the estimate is $4,366,592 for miscellaneous employees. stated public safety is at 30.034%, which is approximately $7,241,000; 2009-2010 public safety figures are 30.827%, which equals $7,524,000 miscellaneous employee figures are 12.862%, which equals $4,449,000. Regular Meeting Alameda City Council 4 February 3, 2009 | CityCouncil/2009-02-03.pdf |