SR-603-001 (11)
PE:EPP stfrpt.2005-2006.revision to plan.bancroft.pms Santa Monica, California
Council Meeting: November 22, 2005
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Adoption of Resolution Amending the Executive Pay Plan
INTRODUCTION
This report requests that Council adopt the attached Resolution amending the
Executive Pay Plan.
BACKGROUND
The Executive Pay Plan (EPP) is being amended to make a technical correction
required by the California Public Employees? Retirement System (CalPERS)
rules and regulations. The management incentive provision of the plan must be
revised to make the application of that provision consistent for the entire class of
employees covered by the Executive Pay Plan. Currently, a member of the plan
who was hired prior to July 1, 1991 and who separates from City service would
be entitled to a cash-out of the balance of the management incentive pay that
he/she would have received during the fiscal year in which he/she separates
from the City. The correction required by CalPERS would eliminate that cash-out
for all members of the plan, making its application uniform for all EPP covered
employees.
BUDGET/FINANCIAL IMPACT
There is no cost associated with the amendment. If a member of the plan hired
before July 1, 1991 should separate from the City in the future, there would be a
cost savings resulting from the amendment.
RECOMMENDATION
It is recommended that Council adopt the attached Resolution amending the
Executive Pay Plan.
Prepared by: Karen Bancroft, Director of Human Resources
Reference resolution #10086 (CCS)
(LABOR\OTHER\EPP stfrpt.2005-2006.revsion to plan.doc)