2019 - 2023 SCPDIAMemorandum of Understanding: Article 11: Deferred Compensation & Retirement

Sonoma County Public Defender Investigators’ Association

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11.1 Deferred Compensation - Voluntary Program
11.2 Deferred Compensation - County Paid Program
11.3 414(h)(2)-Tax Deferred Retirement Contribution
11.4 Retirement – Credit for Prior Public Service
11.5 Retirement – General Employees Hired On or After January 1, 2013
11.6 Retirement – General Employees Hired On or Before December 31, 2012
11.7 Employer Pick-Up of Employee’s Share of Retirement Contribution – Not Allowed

11.1 Deferred Compensation - Voluntary Program

The County agrees to maintain the current voluntary deferred compensation plan for Bargaining Unit members eligible under federal law and the rules of the deferred compensation plan.

11.2 Deferred Compensation - County Paid Program

For each Bargaining Unit employee the County shall deposit one percent (1%) of the employee’s biweekly base salary into the employee’s 401(a) deferred compensation account.

To receive such deferred compensation, such employees must be in paid status for at least 50% of the employee’s allocated full-time equivalent (FTE) position. County-paid deferred compensation under this subsection (11.2) shall not be included in the calculation of retirement contributions.

11.3 414(h)(2)-Tax Deferred Retirement Contribution

All employees covered by this Memorandum who belong to the retirement system shall have their wages adjusted according to Section 414(h)(2) of the Internal Revenue Code which will have the effect of deferring Federal and State income taxes on the retirement contribution.

11.4 Retirement – Credit for Prior Public Service

In addition to any other retirement buyback provision, employees who are contributing members of the Sonoma County Employees’ Retirement Association can purchase retirement credit for public service time rendered prior to employment with the County of Sonoma pursuant to Government Code Sections 31641.1 and 3164.2, during the term of this MOU.

11.5 Retirement – General Employees Hired On or After January 1, 2013

This Section 11.5 (including subsections) shall apply to employees hired on or after January 1, 2013, who are or become contributing members of the Sonoma County Employees’ Retirement Association (“SCERA”) and who do not qualify for pension reciprocity as stated in the Government Code Section 7522.02(c).

11.5.1 Final Compensation Based On Three Year Average

As required by Government Code Section 7522.32, effective January 1, 2013, for the purposes of determining a retirement benefit for SCERA members covered by this section 11.5, final compensation shall mean the highest average annual pensionable compensation earned during 36 consecutive months of service.

11.5.2 2.0% @ 62 Pension Formula

As required by Government Code Section 7522.20, the 2.0% at 62 formula shall be available to employees covered by this Section 11.5 who are contributing members of the SCERA.

11.5.3 Required Employee Contributions

As required by Government Code Section 7522.30(c), SCERA members covered by this Section 11.5 shall pay 50 percent of normal costs. In addition, SCERA members covered by this section 11.5 shall pay 3.03 percent of the employee’s pensionable compensation toward the County’s employer contribution to retirement costs. The additional 3.03% contribution will end the last pay period in June 2024.

11.6 Retirement – General Employees Hired On or Before December 31, 2012

This Section 11.6 (including Subsections) shall apply to employees hired on or before December 31, 2012 who are contributing members of the SCERA, or who are hired after that date and qualified for pension reciprocity pursuant to Government Code Section 7522.02 (c) and any related SCERA reciprocity requirements.

11.6.1 Final Compensation Based on Single Year

For purposes of determining a retirement benefit, final compensation for employees covered by this Section 11.6 shall mean the average annual compensation earnable by the member as specified in Government Code Section 31462.1.

11.6.2 3.0% @ 60 Pension Formula

The 3.0% at 60 pension formula (CERL 31676.17) shall be available to employees covered by this Section 11.6 who are contributing members of the SCERA.

11.6.3 Required Employee Contribution

SCERA members covered by this Section 11.6 will contribute the amount required by SCERA as employee contributions, and shall continue to pay an additional 3.03% of pay, pretax, to their employee retirement account. This 3.03% of pay contribution of the employee’s pensionable compensation is intended to defray the cost of retirement plan’s unfunded accrued actuarial liability. This additional 3.03% contribution will continue unless modified by mutual agreement between the County and SCPDIA.

11.6.4 Employee Cost Share – 50% of Normal Cost

Effective the first full pay period following July 1, 2016, and subject to Sonoma County Employees Retirement Association (SCERA) Board approval of the cost share arrangement under the terms described herein, active County General legacy members of SCERA will contribute one third of the actuarially determined difference between the average General legacy employee retirement rate (exclusive of the 3.03% payroll contribution toward the UAAL described in Section 11.6.3 of the MOU) and one half the total normal cost (“total normal cost” includes both employer and member shares) calculated as an average for General legacy Members of the Sonoma County Employees Retirement Association (SCERA) covered by this Section 11.6 based on rates of all active County General legacy members, with the difference computed to a factor and applied equally to all legacy members. Such legacy employees will receive a lump sum benefit allowance as reimbursement for this pension cost share arrangement each pay period equal to the dollar value of the deduction described in this paragraph, less any required taxes.
Effective the first full pay period following July 1, 2017, and subject to Sonoma County Employees Retirement Association (SCERA) Board approval of the cost share arrangement under the terms described herein, active County General legacy members of SCERA will contribute an additional one third (for a total of two thirds) of the actuarially determined difference between the average General legacy employee retirement rate (exclusive of the 3.03% payroll contribution toward the UAAL described in Section 11.6.3 of the MOU) and one half the total normal cost (“total normal cost” includes both employer and member shares) calculated as an average for General legacy Members of the Sonoma County Employees Retirement Association (SCERA) covered by this Section 11.6 based on rates of all active County General legacy members, with the difference computed to a factor and applied equally to all legacy members. Such legacy employees will receive a lump sum benefit allowance as reimbursement for this pension cost share arrangement each pay period equal to the dollar value of the deduction described in this paragraph, less any required taxes.
The lump sum benefit allowance described in Sections 11.6.4 (a) and (b) will not be included in wages for computations of overtime, pension benefits or for any County benefit related purpose. The parties acknowledge that the negotiated cost share arrangement is subject to the approval of the Sonoma County Employees Retirement Association (SCERA) Board. In the event SCERA does not accept the purpose of the lump sum benefit as described herein, if SCERA deems the benefit allowance as pensionable compensation, or if the pension reimbursement is determined to be taxable beyond FICA and Medicare taxation, the parties agree that this provision shall cease to be implemented and the parties will reopen this Section of the contract to meet and confer on a replacement pension cost share arrangement, subject to mutual agreement of the parties.

11.7 Employer Pick-Up of Employee’s Share of Retirement Contribution – Not Allowed

Pursuant to the Public Employees’ Pension Reform Act of 2013 (PEPRA) The County shall not contribute towards any employee’s share of retirement contributions.