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BACKGROUND In April 2007, City representatives began labor negotiations with representatives of the International Association of Fire Fighters, Local 1974 (IAFF), pursuant to the Meyers- Milias-Brown Act (Government Code Section 3500, et. seq.). IAFF represents approximately 110 fire safety employees in the classifications of firefighters, firefighter/paramedics, fire engineers, fire captains, fire inspectors and hazardous materials coordinator. DISCUSSION Under the California Public Employees Retirement System (CaIPERS), agencies with less than 100 public safety employees are covered in a pooled plan; and police and fire employees have separate retirement plans. Therefore, based on the number of employees, Pleasanton police employees are covered by a pooled plan whereas the Livermore-Pleasanton Fire Department (LPFD) is not in a pooled plan, and instead have their own retirement plan. CaIPERS has a mandated benefit known as the Pre- retirement Optional 2W Death Benefit for its pooled plans. This benefit expands the standard death benefit provided to a spouse or domestic partner of a deceased public safety member who was eligible to retire. The standard benefit is a lump sum payment of $500, 6 months of the deceased member's pay, and refund of the employee's portion of contributions plus interest. The expanded benefit allows the eligible beneficiary to receive a monthly allowance equal to the amount he/she would have received if the deceased employee retired for service on the date of death, and elected Optional Settlement 2 (the highest monthly allowance a member can leave an eligible beneficiary). Since public safety positions face higher risk factors, this benefit ensures a lifetime monthly allowance to the beneficiary of a deceased public safety employee who was eligible to retire. The expanded death benefit is not mandated for the LPFD retirement plan since it is not a pooled plan, but the benefit may be negotiated. Representatives from the cities of Livermore, Pleasanton and the IAFF agreed in a Side Letter to request an actuarial valuation from CaIPERS for the Pre-retirement Optional 2W Death Benefit. The benefit would be implemented provided the cost did not exceed $27,000 the first contract year. The cost, which is shared approximately 50/50 with the City of Livermore under a cost sharing agreement, amounted to a total amount of $24,938. To implement this benefit, an amendment to the retirement contract with CaIPERS is required. The first step is the adoption of a resolution to execute the intention to approve the amendment, and the introduction of the appropriate ordinance. The benefit will become effective thirty days after the second reading of the ordinance, on May 17, 2008. Page 2 of 3