City streamlines PERS costs saving $442,400
Claremont City Council approved the use of a Public Employees’ Retirement System (PERS) Two Years Service Credit, saving the city an estimated $442,400 in retirement costs over the next 5 years. Without the use of the service credit, the city would accrue PERS costs of about $294,000 over the next 20 years.
“By paying it early, we will reduce the interest that’s calculated over the next 20 years. We are basically pre-paying the bill,” Mr. Parker said when the credit was first addressed at the Sept. 27 city council meeting. “Let’s address the costs of the PERS right up front, get it over with, and then have the savings.”
Through the credit, the city will front retirement funds to 6 of its employees in an effort to save money in the future, said City Manager Jeff Parker.
“It’s a mini reorganization,” said Mr. Parker. “Knowing we have employees looking to retire in the one or 2 years we are making an effort to streamline department costs.”
The 6 employees receiving the credit fall in the category of senior solid waste operator, solid waste crew leader, maintenance crew leader, and executive assistant to the city manager.
Additional savings will be made by restructuring the departments addressed in the service credit. Following retirement, the position of solid waste crew leader will be eliminated and the city will have the opportunity to “downgrade” the positions, according to Mr. Parker.
The council voted unanimously to adopt the credit.
“It’s these kinds of creative ways of dealing with issues within the city’s staffing that will both result in savings and long term efficiencies for our organization,” said Council Member Joe Lyons.
More city council news next edition.