Terminating the Employment Relationship

The public agency need not intend to layoff, transfer or demote the entire job classification, department, or organizational unit. However, the agency will have to certify to PERS that it is electing to offer these Golden Handshakes because of impending transfers, demotions or layoffs that constitute a minimum of 1% of that entire job classification, department, or organizational unit resulting from the curtailment of, or change in the manner of performing services. Third, the public agency will have to meet and confer with any bargaining units for which its members are within the designated job classification, departments, or “other organizational units.” As future retirement benefits for existing employees are a mandatory subject of bargaining, the collective bargai ning units must be notified of the agency’s intent to offer the two years of additional service credit as an incentive for early retirement and be given an opportunity to meet and confer on the issue. 318 Fourth, if this is the first time the benefit is being offered, the public agency must retain an actuary to develop an estimate of the cost to the public agency if all eligible employees in the designated job classification, department or other organizational unit opted to accept the Golden Handshake. Then, the public agency must hold a public meeting where the costs are disclosed, the job classifications, departments or other organizational units are designated, and the governing body must, by resolution, choose to become subject to the provisions of Government Code section 20903. 319 Fifth, no less than two weeks after holding the public meeting, the public agency will have to amend its contract with PERS to become subject to the provisions of Government Code section 20903. In doing so, the public agency certifies to PERS several things, including that it is the agency’s intention, that if anyone accepts the offer of the Golden Handshake and retires, the agency will not fill the vacancy or that at least one vacancy in any position in any department or other organizational unit will remain permanently unfilled so that there is an overall reduction in the workforce of the department or organizational unit. The agency must also designate a time period, also by resolution, wherein a qualifying employee may elect to accept the Golden Handshake, provided that the period is not less than 90 days or more than 180 days in length. Sixth, the public agency must only offer the Golden Handshake to employees within those designated classifications, departments, or other organizational units who are eligible. To be eligible, an employees must: (a) be currently employed by the agency at the time of accepting the Golden Handshake; (b) be over the age of 50; (c) have a minimum of five years ’ service credit (the two years of purchased service credit under this provision does not count toward the minimum five years ’ service credit required); and (d) not receive unemployment insurance payments during that 90 to 180 day designated period. In addition, if an employee accepts the Golden Handshake, retires, and then later re-enters PERS through employment with any PERS public agency, the employee will forfeit the two years of additional service credit acquired from the Golden Handshake. 320

Terminating the Employment Relationship ©2022 (s) Liebert Cassidy Whitmore 91