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Home My WebLink AboutRESOLUTIONS - 01012003 - 2003-135 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA SUBJECT: ENHANCED RETIREMENT BENEFITS FOR CNA MEMBERS AND MANAGERS, RESOLUTION NO. 2003/135 BUYBACK PROGRAM, AND RELATED SUBJECTS BACKGROUND: The following information is provided for background purposes only: 1. Effective January 1, 2001, Government Code section 31676.16 was enacted to authorize counties to grant an enhanced retirement benefit to their employees who are miscellaneous retirement members. This enhanced benefit is commonly known as 2% at 55. 11. Pursuant to Government Code sections 7507 and 31516, the services of an enrolled actuary were secured to provide a statement of the actuarial impact upon future annual costs of the 2% at 55 retirement benefit for Tier One and Tier Three time and the 3% at 50 retirement benefit for safety members. The statement of the enrolled actuary of the actuarial impact upon future annual costs of the 2% at 55 retirement benefit for Tier One and Tier Three time and the 3% at 50 retirement benefit for safety members was made public at a public meeting of the Board of Supervisors on September 17, 2002. III. Can October 1, 2002, the Board of Supervisors adopted Resolution No. 2002/608 to provide certain specified enhanced retirement benefits to its employees who are miscellaneous retirement members of the Contra Costa County Employees' Retirement Association ("CCCERA") except that Resolution No. 2002/608 expressly provides that none of the listed benefits are granted to miscellaneous retirement members of CCCERA who are employed by Contra Costa County and assigned to bargaining units that are represented by the California Nurses Association, to the nonrepresented employees within similar job classifications as employees in bargaining units represented by the California Nurses Association, or to the supervisors and managers of those employees. IV. On or about December 10, 2002, the County and the California Nurses Association entered into the following Tentative Agreement: RETIREMENT ENANGEMENTS • Effective 01101105, Tier 2 of the retirement plan for employees represented by the California Nurses Association shall be eliminated and all employees in Tier 2 of the retirement plan shall be placed in Tier 3. • Effective 01/01/05, employees represented by the California Nurses Association in Tier 2 with ten (10) or more years of County service, will be eligible to participate in the County's buy back program. Employees may replace Tier 2 benefits with Tier 3 benefits as follows: 1. Employee buys back two (2) years, County will buy back one (1) year for a total of three (3) years of buyback. 2. Employee buys back four (4) years, County will buy back two (2) years for a total of six (6)years of buyback. 3. Employee buys back six (6)years, County will buy back three (3) years for a total of nine (9) years of buyback. Page 1 of 3 RESOLUTION NO. 2003/ 135 • Effective 01/01/05, the current retirement formula for employees represented by the California Nurses Association will be replaced with a formula commonly called 2% at 55. NOW THEREFORE, BE IT RESOLVED THAT: 1. ° F Effective on January 1, 2005 and pursuant to Government Code sections 31755.2 and 31755.3, Government Code section 31676.16 shall apply to Tier One and Tier Three service time credited to miscellaneous retirement members of CCCERA who are employed by Contra Costa County, assigned to bargaining units that are represented by the California Nurses Association, and who retire on or after January 1, 2005. With respect to Tier Three service time, section 31676.16 shall only apply to time for which Tier Three member contributions have been paid. Section 31676.16 shall not apply to any periods of service performed as Tier Two service under Government Code section 31751 unless Tier Three service time has been purchased by or on behalf of the member for those periods. 2. MIKELLANEOUS CNAMOVE FROM TIER 2 TO TIER 3. Effective on January 1, 2005 and for all service performed on and after that date, Government Code section 31755.1 (Tier Three) shall apply and Government Code section 31751 (Tier Two) shall NOT apply, to all Contra Costa County employees who are Tier Two retirement members of CCCERA and who are assigned to bargaining units that are represented by the California Nurses Association, with the following exceptions: (a) Section 31755.1 (Tier Three) shall not apply to any employee for any service performed while he or she is a safety member of CCCERA; (b) Section 31755.1 (Tier Three) shall not apply to any employee for any service performed in Tier One as described in Government Code section 31755; and (c) The benefit formula set forth in Government Code section 31752 shall apply to all Tier Two service time with which a CCCERA member is credited at retirement. 3. NEWLY HIRED CNA EMPLOYEES. Effective on January 1, 2005, Government Code section 31755.1 (Tier Three) shall apply to all new employees hired by the County of Contra Costa who are miscellaneous retirement members of CCCERA and who are assigned to bargaining units represented by the California Nurses Association. 4. CL46 BUYBACK PROGRAM. Effective on January 1, 2005, employees who are assigned to bargaining units that are represented by the California Nurses Association, are in Tier Three, and have 10 or more years of County service, are eligible to participate in the buyback program. Under the terms of the buyback program and beginning on January 1, 2005, employees may replace Tier Two service time with Tier Three service time on the following terms: Employee buys back 2 years of Tier Two service time — County will buy back 1 year for a total of 3 years of buyback; Employee buys back 4 years of Tier Two service time — County will buy back 2 years for a total of 6 years of buyback; and Employee buys back 6 years of Tier Two service time — County will buy back 3 years for a maximum total of 9 years of buyback. 5. QNA MANAGERS AND UPERVISORS. The benefits set forth herein apply at the same time, in the same manner, and to the same extent to the supervisors and managers of employees represented by the California Nurses Association, to nonrepresented employees within similar job classifications as employees in bargaining units represented by the California Nurses Association, and to the supervisors and Page 2 of 3 RESOLUTION NO. 2003/ 135 managers of those nvnrepresented employees. 6. ACTUARIAL IMPACT ANNOUNCED, The County of Contra Costa acknowledges that the statement of the enrolled actuary of the actuarial impact upon future annual costs of the 2% at 55 retirement benefit for Tier One and Tier Three time and the 3% at 50 retirement benefit for safety members was made public at a public meeting of the Board of Supervisors on September 17, 2002, in accordance with Government Code sections 7507 and 31516. This Resolution was Adopted on February 25, 2003 , by the following vote: AYES. SUPERVISOR GIOIA, UILY.EMA, GLOVER & DeSAULNIER. NOES. ABSENT. SUPERVISOR GERBER ABSTAIN. 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: a' _ Jon Sweeten, rk of the Board of Supervisors and ounty Administrator )1�1, BA- Deouty VLl3:ld cc. County Counsel Human Resources Labor Relations County Administrator Auditor-Controller Health Services Director Contra Costa County Employees' Retirement Association Administrator California Nurses Association HALA9oRAetirement Enhancementsv3oard AcdonakCNA retirement benefits tlnal.wpd Page 3 of 3 RESOLUTION NO. 2003!