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THE CITY OF 2 <br /> CITY COUNCIL AGENDA REPORT 2 <br /> pL£ASANTONo <br /> May 18, 2010 <br /> Administrative Services <br /> TITLE: ADOPT A RESOLUTION APPROVING THE ACCUMULATION PROGRAM <br /> FOR PART -TIME AND LIMITED SERVICE EMPLOYEES (APPLE) AS AN <br /> ALTERNATIVE RETIREMENT PLAN <br /> SUMMARY <br /> Section 11332 of the Omnibus Reconciliation Act 1990 extends retirement benefit <br /> coverage to employees not covered by a retirement plan. Part-time and temporary <br /> employees are covered by Social Security for retirement benefits. City staff evaluated <br /> alternative retirement plans to Social Security for this group of employees. These <br /> alternative plans offer certain benefits to part-time and temporary employees and serve <br /> as a cost saving measure for the City. <br /> RECOMMENDATION <br /> Adopt the attached resolution, approving the Accumulation Program for Part-Time and <br /> Limited Service Employees (APPLE) which provides for a retirement plan for certain <br /> part-time and temporary employees in lieu of Social Security. <br /> FINANCIAL STATEMENT <br /> Savings estimates for the City of Pleasanton are $80,000 the first year, $395,000 the <br /> fifth, and $800,000 after 10 years based on an annual payroll of $1.6 million for this <br /> workforce of 394 employees. <br /> Employer costs for the program are 2% of funds contributed the first year of the <br /> program and 0.8% of funds contributed each year thereafter. Estimated costs are $2415 <br /> in the first year and $1932 in the second year. <br />