Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Michelle Kuka, Deputy Director, Human Resources
Subject: Amendment to the current Memorandum of Understanding with the Law Enforcement Unit
RECOMMENDATION:
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Adopt a resolution authorizing approval of an amendment to the current Memorandum of Understanding with the Law Enforcement Unit for the term of December 24, 2023, through December 18, 2027.
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BACKGROUND:
The Law Enforcement Unit (LEU) has a current Memorandum of Understanding (MOU), which is valid until December 18, 2027. LEU requested, and was approved, to be the official recognized employee organization for two additional classifications, Community Services Officers and Forensic Autopsy Technicians. These classifications were previously represented by the American Federation of State, County and Municipal Employees (AFSCME). The County and LEU have met and conferred in good faith and agreed to the terms to amend the current LEU MOU as described in the Side Letter Agreement.
DISCUSSION:
The salaries and benefits for the classifications of Community Services Officers and Forensic Autopsy Technicians were previously covered under the AFSCME MOU. Through the meet and confer process it was determined that these two classifications would be covered under the existing LEU MOU with some additional changes to the retiree health language that are outlined in the Side Letter Agreement.
Employees in the classifications of Community Services Officer and Forensic Autopsy Technicians will be covered under the new retiree health language that is outlined in the side letter agreement. Employees in these two classifications will have the new LEU retiree health benefits effective the pay period following Board approval of the side letter agreement. The following is a high-level summary of the major changes but is not a substitute for the attached agreement and the detailed terms contained therein:
1) Retiree Health Benefits will still be based on hire date and years of service at time of retirement, but these employees will now receive the following benefits if they retire concurrently with separating from the County.
a. Employees hired before the transition date of February 18, 2024, with less than ten years of service at the time of retirement will have frozen sick leave hours plus any of the unused 192 hours of old sick leave at time of retirement will be deposited into the employee’s RHSA using the current conversion rate.
b. Employees hired before the transition date of February 18, 2024, with between ten and fifteen years of service at the time of retirement to age 65 will receive a County contribution up to $500 per month for purchase of medical, dental and vision through the County health plans. When the retiree reaches the age of 65, the County contribution will cease. In addition, 50% of frozen sick leave hours plus any of the unused 192 hours of old sick leave at time of retirement will be deposited into the employee’s RHSA at the employee’s base hourly rate of pay at time of retirement.
c. Employees hired before the transition date of February 18, 2024, with between fifteen and twenty years of service at the time of retirement to age 65 will receive a County contribution up to $891.95 per month for purchase of medical, dental and vision through the County health plans. When the retiree reaches the age of 65, the County contribution will cease. In addition, 50% of frozen sick leave hours plus any of the unused 192 hours of old sick leave at time of retirement will be deposited into the employee’s RHSA at the employee’s base hourly rate of pay at time of retirement.
d. Employees hired before the transition date of February 18, 2024, with between twenty and twenty-five years of service at the time of retirement to age 65 will receive a County contribution up to $1,189.27 per month for purchase of medical, dental and vision through the County health plans. When the retiree reaches the age of 65, the County contribution will cease. In addition, 50% of frozen sick leave hours plus any of the unused 192 hours of old sick leave at time of retirement will be deposited into the employee’s RHSA at the employee’s base hourly rate of pay at time of retirement.
e. Employees hired before the transition date of February 18, 2024, with twenty-five or more years of service at the time of retirement to age 65 will receive a County contribution up to $1,300 per month for purchase of medical, dental and vision through the County health plans. When the retiree reaches the age of 65, the County contribution will cease. In addition, 50% of frozen sick leave hours plus any of the unused 192 hours of old sick leave at time of retirement will be deposited into the employee’s RHSA at the employee’s base hourly rate of pay at time of retirement.
f. Employees hired before the transition date of February 18, 2024, who retire with 15 or more years of service at retirement would be eligible for monthly contributions payable by the County for 10 years. After the retiree turns age 65 and becomes eligible for Medicare, the proposed benefit amounts would be $166.22 per person in 2023. There would be no post-65 benefit paid for those with less than 15 years of service. The benefits would be payable for 10 years. For someone retiring prior to age 65, this benefit would first be payable at age 65 and continue for 10 years (until age 75). For eligible members retiring after age 65, the benefits would be payable for 10 years after retirement.
g. New employees hired after the transition date of February 18, 2024, the County will contribute $50.00 per month to the PORAC Trust for a retiree health savings account and the employee will contribute $100.00 per month to the PORAC Trust for a retiree health savings account.
County Attorney has reviewed and approved the resolution as to form.
Financial Impact on County’s Future Annual Costs
Government Code 7507 requires the County to provide the estimated financial impact that proposed changes in retirement benefits or other postemployment benefits would have on the future annual costs including but not limited to the annual dollar changes, or the total dollar changes involved as well as normal cost and any change to accrued liability.
As reflected in the attached letter from the County’s actuary, Milliman, the retiree health benefit reflected in this analysis is projected to increase the actuarial present value of benefits from $752,000 to $909,000, which is an increase of $157,000. The service cost represents the value of benefits earned during the year on an on-going basis and will decrease over time as new hires will only receive the $50.00 monthly contribution toward a RHSA and not incur service costs.
FISCAL IMPACT:
Active existing employees hired before February 18, 2024, and covered by this side letter, would contribute 0.85% of salary which would offset the increase in the actuarial present value of employee contributions such that it would be equal to the change in the actuarial present value of benefits associated with the retiree health benefit.