Loading...
HomeMy WebLinkAbout05 - Public Safety Association MOUsAugust 8, 2000 Agenda Item No. 5 CITY OF NEWPORT BEACH Administrative Services Department Accounting —Revenue —Fiscal Services —Management Information Services —Resource Allocation August 8, 2000 TO: HONORABLE MAYOR AND MEMBER THE CITY COUNCIL From: Sharon Wood, Assistant City Man er SUBJECT: SUPPLEMENTAL MOUs FOR PUBLIC SAFETY ASSOCIATIONS Recommendation: Approval of the attached SMOUs. Executive Summary: This agenda item brings a Supplemental Memorandum of Understanding (SMOU) for each of the City's five Public Safety Associations to the City Council for approval. Each of the SMOUs contains provisions for implementing the 3 % @55 enhanced retirement system in conjunction with corresponding cost reduction measures in other areas. Background: Enhanced retirement programs were authorized by the legislature and made available by CalPERS this year. Several months ago, Newport Beach Public Safety Associations requested participation in one of the new programs. At that time, the City Council took the position of interposing no objection to the programs as long as they were implemented on a cost neutral basis. Staff was directed to meet and confer with Association representatives accordingly. This proved to be a long and complicated undertaking. In addition to working with cost information provided by CalPERS, an outside actuary (John Bartel of Aon) was hired by the City to provide projections on where the costs of this program were likely to go over the coming years. In addition, a number of different cost reduction options were developed and analyzed. Many of these were eventually presented to the Associations. The Associations originally preferred the 3 % @50 plan, but it proved to be too costly (in terms of corresponding reductions needed) for them to pursue at this time. However, tentative agreement was reached on the 3 % @55 plan, which is substantially less costly (approximately 7% of pay difference). During the closed session of July 25, the City Council was presented with information regarding the tentative agreement and specific cost reduction measures. This evening's agenda item is the second of three separate City Council actions needed to implement the enhanced retirement system for Public Safety employees. On July 25, the City Council adopted a Resolution of Intention to provide this benefit. At this meeting, the SMOUs are being presented for approval. An ordinance will be presented for approval at the City Council meeting on August 22. SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING This supplemental Memorandum of Understanding amends the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Management Association dated January 1, 1999 through December 31, 2001. Except as modified by this supplemental MOU, all the provisions of the Memorandum of Understanding between the City and the Newport Beach Police Management Association remain unchanged. The City and the Newport Beach Police Management Association agree as follows: A. RETIREMENT The City will immediately commence the process of amending its contract with the Public Employees' Retirement System to implement the 3% at 55 Retirement Program. The program will be implemented September 1, 2000; or as soon thereafter as possible. The ongoing cost of this retirement change shall be home by the City. B. RETIREE MEDICAL PROGRAM An employee is eligible for retiree medical benefits after seven years of service if the employee retires from the City and is a PERS annuitant. Effective immediately, the City shall implement the $400 cap for retiree medical insurance contributions as currently provided for in the Memorandum of Understanding between the City and the Newport Beach Police Management Association. In accordance with existing agreements, the City and active employees shall be responsible for 3 14ths (1/2 City and 1/4 actives) of retiree medical insurance cost to a maximum of $400. Retirees shall be responsible for the remaining 1/4. The employee's share of the retirement contribution in accordance with the formulas set forth above shall be $27.47 per month. Subsequent contribution levels shall be set in July, annually, in accordance with the formula described above. 2. In addition to the contributions in B1 above, effective August, 2000, current employees shall contribute $10 per month and the City shall contribute $20 per employee per month to accumulate funds to meet unfunded retiree medical liabilities. This contribution shall continue until the liability is fully funded. 3. The City shall maintain separate, interest bearing accounts for current and reserve retiree medical funding. Statements of these accounts shall be available to all affected employee organizations. C. DIRECT DEPOSIT Effective immediately, all unit employees shall participate in the direct deposit program D. SMOU LOOKBACK "Lookback" adjustments due unit employees effective July, 2000, shall reduced by .13 %. NBPMA Supplemental Page 2 The final lookback required under agreements between the City and the Newport Beach Police Management Association for July, 2001, shall be eliminated. Except as provided herein, the Memorandum of Understanding between the City and the Newport Beach Police Management Association remains in full force and effect. This supplemental Memorandum of Understanding shall be incorporated into the Memorandum of Understanding between the City and Association for the contract period beginning January 1, 2002. FOR THE CITY OF NEWPORT BEACH FOR THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING This supplemental Memorandum of Understanding amends the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Employees Association dated January 1, 1999 through December 31, 2000. Except as modified by this supplemental MOU, all the provisions of the Memorandum of Understanding between the City and the Newport Beach Police Employees Association remain unchanged. The City and the Newport Beach Police Employees Association agree as follows: A. RETIREMENT Non -Swom - The City has amended its contract with the Public Employees' Retirement System to implement the 2% at 55 Retirement Program. The program was implemented July 12, 2000. The ongoing cost of this retirement change shall be borne by the City. 2. Sworn - The City will immediately commence the process of amending its contract with the Public Employees' Retirement System to implement the 3% at 55 Retirement Program. The program will be implemented September 1, 2000; or as soon thereafter as possible. The ongoing cost of this retirement change shall be borne by the City. B. CAFETERIA PLAN Effective October, 2000, or as soon as possible thereafter, the City shall implement an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be $384. In addition, the City shall contribute a total of $16 towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical,dental and vision insurances /programs. The City and the Newport Beach Police Employees Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules during regular open enrollment periods. C. DIRECT DEPOSIT Effective immediately, all unit employees shall participate in the direct deposit program. D. RETIREE MEDICAL PROGRAM An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's right to medical insurance NBPEA Supplemental Page 2 coverage under the Ca1PERS medical insurance plan and the mandatory minimum of $16 per month employer contribution to said plan on behalf of the annuitant. Effective immediately, the City shall implement the $400 per month cap for retiree medical insurance premium contributions as provided for in Section 3, A (5) of the Memorandum of Understanding between the City and the Newport Beach Police Employees Association. The City and active employees shall be responsible for 3 /4ths (1/2 City and 1/4 actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums Concurrent with implementation of the 2% at 55 PERS upgrade and the Cafeteria Plan, for NBPEA unit employees, the current $15.12 per month employee deduction for retiree medical insurance shall be increased to $27.47 per month. Subsequent contribution levels shall be set as needed in the month of July per the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBPEA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBPEA prior to any increases in employee deduction levels. 2. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution in Dl above; effective August, 2000, each NBPEA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBPEA mutually agree to end the funding on behalf of NBPEA members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under C 1 above. In the event the retiree medical insurance program described herein is discontinued, NBPEA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBPEA on the distribution of said funds back to active (not retired/full -time) City employees in the NBPEA unit. The City will provide NBPEA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. NBPEA Supplemental Page 3 3. The City agrees to meet and confer with NBPEA upon request with regards to alternative programs and/or funding methods for retiree medical insurance premiums for NBPEA members. This will include but not be limited to IRS 401 -A plans and/or NBPEA sponsored variable and universal annuity type plans for individual members. E. SMOU LOOKBACK - SWORN EMPLOYEES "Lookback" adjustments due Swom unit employees effective July, 2000, shall reduced by .13 %. The final lookback required under agreements between the City and the Newport Beach Police Employees Association for July, 2001, shall be eliminated. The lookback for non -swom employees shall not be affected by this section. F. CONTINUING DISCUSSIONS The City and the Newport Beach Police Employees Association agree to continue discussions, in conjunction with other affected employee organizations, on possible implementation of other supplemental and/or individual retiree medical insurance accounts. Except as provided herein, the Memorandum of Understanding between the City and the Newport Beach Police Employees Association remains in full force and effect. This supplemental Memorandum of Understanding shall be incorporated into the Memorandum of Understanding between the City and Association for the contract period beginning January 1, 2001. FOR THE CITY OF NEWPORT BEACH FOR THE NEWPORT BEACH POLICE EMPLOYEES ASSOCIATION SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING This supplemental Memorandum of Understanding amends the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management Association dated January 1, 1999 through December 31, 2001. Except as modified by this supplemental MOU, all the provisions of the Memorandum of Understanding between the City and the Newport Beach Fire Management Association remain unchanged. The City and the Newport Beach Fire Management Association agree as follows: A. RETIREMENT The City will immediately commence the process of amending its contract with the Public Employees' Retirement System to implement the 3% at 55 Retirement Program.The program will be implemented September 1, 2000; or as soon thereafter as possible. The ongoing cost of this retirement change shall be borne by the City. B. RETIREE MEDICAL PROGRAM An employee is eligible for retiree medical benefits after seven years of service if the employee retires from the City and is a PERS annuitant. Effective immediately, the City shall implement the $400 cap for retiree medical insurance contributions as currently provided for in the Memorandum of Understanding between the City and the Newport Beach Fire Management Association. In accordance with existing agreements, the City and active employees shall be responsible for 3 /4ths (1/2 City and 1/4 actives) of retiree medical insurance cost to a maximum of $400. Retirees shall be responsible for the remaining 1/4. The employee's share of the retirement contribution in accordance with the formulas set forth above shall be $27.47 per month. Subsequent contribution levels shall be set in July, annually, in accordance with the formula described above. 2. In addition to the contributions in B 1 above, effective August, 2000, current employees shall contribute $10 per month and the City shall contribute $20 per employee per month to accumulate funds to meet unfunded retiree medical liabilities. This contribution shall continue until the liability is fully funded. 3. The City shall maintain separate, interest bearing accounts for current and reserve retiree medical funding. Statements of these accounts shall be available to all affected employee organizations. C. DIRECT DEPOSIT Effective immediately, all unit employees shall participate in the direct deposit program. D. SALARY ADJUSTMENTS 1. SMOU "LookbacV. The final lookback required under the SMOU agreement NBFMA Supplemental Page 2 between the City and NBFA in July, 2001, shall be eliminated. Except as provided herein, the Memorandum of Understanding between the City and the Newport Beach Fire Management Association remains in full force and effect. This supplemental Memorandum of Understanding shall be incorporated into the Memorandum of Understanding between the City and Association for the contract period beginning January 1, 1999 through December 31, 2001. FOR THE CITY OF NEWPORT BEACH FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING This supplemental Memorandum of Understanding amends the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Firefighters Association dated January 1, 1999 through December 31, 2001. Except as modified by this supplemental MOU, all the provisions of the Memorandum of Understanding between the City and the Newport Beach Firefighters Association remain unchanged. The City and the Newport Beach Firefighters Association agree as follows: A. RETIREMENT The City will immediately commence the process of amending its contract with the Public Employees' Retirement System to implement the 3% at 55 Retirement Programs. The program will be implemented September 1, 2000; or as soon thereafter a possible. The ongoing cost of this retirement change shall be bome by the City. B. RETIREE MEDICAL PROGRAM An employee is eligible for retiree medical benefits after seven years of service if the employee retires from the City and is a PERS annuitant. Effective immediately, the City shall implement the $400 cap for retiree medical insurance contributions as currently provided for in the Memorandum of Understanding between the City and the Newport Beach Firefighters Employees Association. In accordance with existing agreements, the City and active employees shall be responsible for 3 /4ths (1/2 City and 1/4 actives) of retiree medical insurance cost to a maximum of $400. Retirees shall be responsible for the remaining 1/4. The employee's share of the retirement contribution in accordance with the formulas set forth above shall be $27.47 per month. Subsequent contribution levels shall be set in July, annually, in accordance with the formula described above. 2. In addition to the contributions in B 1 above, effective August, 2000, current employees shall contribute $10 per month and the City shall contribute $20 per employee per month to accumulate funds to meet unfunded retiree medical liabilities. This contribution shall continue until the liability is fully funded. 3. The City shall maintain separate, interest bearing accounts for current and reserve retiree medical funding. Statements of these accounts shall be available to all affected employee organizations. C. DIRECT DEPOSIT Effective immediately, all unit employees shall participate in the direct deposit program. D. SALARY ADJUSTMENTS The salary adjustment due unit employees the first payroll period in January , 2001 shall be reduced by .13% to 2.87 %. NBFA Supplemental Page 2 2. SMOU "LookbacV. The final lookback required under the SMOU agreement between the City and NBFA in July, 2001, shall be eliminated. Except as provided herein, the Memorandum of Understanding between the City and the Newport Beach Firefighters Association remains in full force and effect. This supplemental Memorandum of Understanding shall be incorporated into the Memorandum of Understanding between the City and Association for the contract period beginning January 1, 1999 through December 31, 2001. FOR THE CITY OF NEWPORT BEACH FOR THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING This supplemental Memorandum of Understanding amends the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Marine Safety Officers Association dated July 1, 1999 through June 30, 2002. Except as modified by this supplemental MOU, all the provisions of the Memorandum of Understanding between the City and the Newport Beach Marine Safety Officers Association remain unchanged. The City and the Newport Beach Marine Safety Officers Association agree as follows: A. RETIREMENT The City will immediately commence the process of amending its contract with the Public Employees' Retirement System to implement the 3% at 55 Retirement Program.The program will be implemented September 1, 2000; or as soon thereafter as possible. The ongoing cost of this retirement change shall be borne by the City. B. DIRECT DEPOSIT Effective immediately, all unit employees shall participate in the direct deposit program. C. SALARY Salaries for unit classfications are set in a specified relationship to Firefighter classifications (Section 2.B.1) The City and NBMSOA acknowledge that Fire classifications have had salaries reduced as follows as a part of the agreement to implement the 3 % @55 retirement program as follows: The salary adjustment due unit employees the first payroll period in January 2001 shall be reduced by. 13% to 2.87 %. 2. SMOU "Lookback". The final lookback required under the SMOU agreement between the City and NBFA in July, 2001, shall be eliminated. Except as provided herein, the Memorandum of Understanding between the City and the Newport Beach Marine Safety Officers Association remains in full force and effect. This supplemental Memorandum of Understanding shall be incorporated into the Memorandum of Understanding between the City and Association for the contract period beginning July 1, 1999 through June 30, 2002. FOR THE CITY OF NEWPORT BEACH FOR THE NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION