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HomeMy WebLinkAboutMINUTES - 04232013 - SD.1RECOMMENDATION(S): Adopt Resolution No. 2013/198 to APPROVE the Side Letter between Contra Costa County and IFPTE, Local 21 implementing negotiated conditions of employment for employees designated as Safety Members by CCCERA, for the period of May 1, 2013, through June 30, 2015. FISCAL IMPACT: As part of County pension reform, the County set a goal of renegotiating pension cost sharing so that the County and employees each pay their share with no subsidies. The current Memorandum of Understanding (MOU) between the County and Local 21's safety employees included a 2.75% wage reduction that began on October 1, 2011 and the elimination of the Employer subvention of Employee pension costs. Tier A Safety employees in Local 21, however, continue to subsidize the Employer pension cost at 9%. The County negotiated a reduction in subvention of the County's pension cost for this group over the next two years. The FY 2012-13 cost of reducing the 9% subsidy to 4.5% on May 1 is approximately $7,200. The annualized cost of the May 1 reduction for FY 2013-14 is approximately $43,000. The FY 2014-15 cost of reducing the 4.5% subsidy by another 2.25% on January 1, 2015 is approximately $54,000. The total annual cost of the elimination of the 9% subsidy is approximately $86,000 (FY 2015-16). APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 04/23/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Ted Cwiek, 925-335-1766 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: April 23, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: Robert Campbell, Auditor-Controller, Marilyn Leedom, Retirement Administrator, Ted Cwiek, Human Resources Director SD. 1 To:Board of Supervisors From:Ted Cwiek, Human Resources Director Date:April 23, 2013 Contra Costa County Subject:Side Letter Agreement between Contra Costa County and IFPTE, Local 21 on Safety classifications BACKGROUND: IFPTE Local 21 (Local 21) and the County have met and conferred regarding changes to Safety Retirement and the impact on the Safety Members consisting of the Institutional Supervisor II (7KGA) and the Assistant Director of Hazard Materials Program (VLFA) classifications following changes to salaries and benefits for the safety classifications in other units. The term of the current MOU between the County and Local 21 is July 1, 2011, through and including June 30, 2012. The parties agree that the attached Side Letter amends the current MOU between the County and IFPTE, Local 21 limited to the two classifications listed above as identified by CCCERA as Safety Members of IFPTE, Local 21. In summary, those changes are: 1. The Side Letter between the County and Local 21 will continue in full force and effect from May 1, 2013 through and including June 30, 2015, for the safety classifications listed above. Except as provided herein, no new wage or benefit increases or decreases will apply to the safety classifications through and including June 30, 2015. Either party may request to meet and confer regarding any programmatic changes that do not incur additional costs to the County that are agreed upon through MOU negotiations. 2. Any new agreements reached between the County and Local 21 pursuant to the meet and confer process set forth in current MOU section 6.14 Automated Time Keeping, will also apply to the safety classifications subject to this Side Letter. 3. Current MOU Section 41.5 – Annual Management Administrative Leave, subsection A, is amended to add the following new language below: 41.5 Annual Management Administrative Leave: A. On January 1st of each year, full-time employees in paid status will be credited with ninety-four hours (94) of paid Management Administrative Leave. This time is non-accruable and all balances will be zeroed out on December 31st of each year. Beginning on January 1, 2014, and on January 1st of each year thereafter, full-time employees in safety classifications in paid status will be credited with eighty hours (80) of paid Management Administrative Leave. This time is non-accruable and all balances will be zeroed out on December 31st of each year. 4. Section 21.3 Safety Employees Retirement Tier., is deleted in its entirety and replaced as follows: “21.3 Safety Employees Retirement A. Tier A Safety Retirement Benefit – Employees who become CCCERA members on or before December 31, 2012: 1. Retirement Benefit. For County employees covered by this Agreement who become members of Contra Costa County Employees Retirement Association (CCCERA) on or before December 31, 2012, who are designated by CCCERA as Safety Members, the retirement formula “3 percent at 50” applies. The cost of living adjustment (COLA) to the retirement allowances of these employees will not exceed three (3) percent per year. The final compensation of these employees will be calculated based on a twelve (12) month salary average. This retirement benefit is known as “Tier A.” Each employee in Tier A will pay nine percent (9%) of his or her retirement base to pay part of the employer’s contribution for the cost of this Tier A safety retirement benefit. Such payments will be made on a pre-tax basis in accordance with applicable tax laws. “Retirement base” means base salary and other payments, such as salary differential and flat rate pay allowances, used to compute retirement deductions. 2. Effective May 1, 2013, and through December 31, 2014, each employee in Tier A will pay four and half percent (4.5%) of his or her retirement base to pay part of the employer’s contribution for the cost of the Tier A retirement benefit. 3. Effective January 1, 2015, and through June 29, 2015, each employee in Tier A will pay two and a quarter percent (2.25%) of his or her retirement base to pay part of the employer’s contribution for the cost of the Tier A retirement benefit. 4. Effective June 30, 2015, the employee’s payment of two and a quarter percent (2.25%) of his/her retirement base to pay part of the employer’s contribution for the cost of the Tier A retirement benefit will cease. B. Safety Retirement Benefit – Employees who become CCCERA members on or after January 1, 2013. 1. For employees who become Safety Members of the Contra Costa County Employee Retirement Association (CCCERA) on or after January 1, 2013, retirement benefits are governed by the California Public Employees Pension Reform Act of 2013 (PEPRA), (Chapters 296, 297, Statutes of 2012). To the extent this Agreement conflicts with any provision of PEPRA, PEPRA will govern. 2. PEPRA Safety Option Plan Two (2.7% @ 57) applies to employees who, under PEPRA, become New Members of CCCERA. For these employees, the cost of living adjustment to the retirement allowance will not exceed two percent (2%) per year, and the cost of living adjustment will be banked. 3. Subsection A, subparts (1) through (4), above, applies to employees who, under PEPRA, become reciprocal members of CCCERA, as determined by CCCERA.” 5. The terms and conditions of this Side Letter will be incorporated into the current MOU and any successor MOU between the County and Local 21. CONSEQUENCE OF NEGATIVE ACTION: The County will not have consistency between the Safety Members regarding retirement, pay and other economic terms. CHILDREN'S IMPACT STATEMENT: None. CLERK'S ADDENDUM Speaker: Rollie Katz, Public Employees' Union, Local 1. ATTACHMENTS Resolution No. 2013/198 Local 21 Safety Side Letter