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• <br /> MEMORANDUM <br /> Date: June 23, 1993 <br /> From: Thomas D. Burt <br /> To: Mayor and Councilmembers <br /> Subject: EARLY RETIREMENT INCENTIVES <br /> As discussed at the June 22nd meeting, the legislature in its last session passed a one year <br /> early retirement incentive plan. The City has two options it may elect to offer retiring <br /> employees. The options are: <br /> Option 1. An increase in the pension formula of 1/4 percent (.25%) for each year of service • <br /> up to the first 30 years (the maximu m formula increase is 7.5%). There is no cost to either <br /> the employer or employee for this option. <br /> Option 2. Employer-paid health insurance for employees who are between ages 55 and 65 <br /> with certain service requirements. <br /> A question was raised at the Council meeting of why the Council has to pass a resolution to <br /> offer Option 1. The answer given by PERA was that the legislature specifically indicated in <br /> the legislation passed that the governing body must approve the Option. <br /> RECOMMENDATION <br /> City offer Option 1 for 1993 and to pass on Option 2 as this would cost the City money. <br />