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May 9, 2000
SUBJECT: Notice of Intent to Amend Contract with the Public Employees’ Retirement System (PERS) to provide the Military Buy-back Option for Miscellaneous Employees
REPORT IN BRIEF
The current Memorandum of Understanding (MOU) with the Sunnyvale Employees Association (SEA) provides that the City will amend its contract with the Public Employees’ Retirement System (PERS) to provide Section 21024 (Military Service Credit as Public Service) for all local miscellaneous members.
This report recommends the adoption of a Resolution of Intention to approve an amendment to the existing contract between the Board of Administration, California Public Employees’ Retirement System, and the City Council of the City of Sunnyvale, and the First Reading of Ordinance to effect this change.
The adoption of this contract amendment will implement the provisions agreed to in the SEA 1999-2004 MOU.
BACKGROUND
Article C5.6 of the 1999-2004 MOU between the City of Sunnyvale and SEA states that the City shall amend its contract with PERS to provide the Military Buy-Back Option as soon as administratively possible after ratification of the MOU.
DISCUSSION
The Military Buy-Back option, Section 21024, provides that a member may elect to purchase up to four years of service credit for any continuous active military or merchant marine service prior to employment. The member must contribute an amount equal to the contribution for current and prior service that the employee and the employer would have made with respect to that period of service. PERS will calculate the amount of payment the member needs to make; such payment may be made in a lump sum payment, or by monthly payments not to exceed 96 months.
There is no cost to the City associated with the contract amendment to provide the Military Buy-Back option, as the cost of the benefit is paid for by the member who elects to buy-back eligible military service. The amendment, however, provides members electing to buy-back eligible military service with additional service credit towards retirement.
FISCAL IMPACT
There is no additional fiscal impact of this contract amendment.
PUBLIC CONTACT
The public is notified of this action through placement on the City Council Agenda. Employees represented by SEA, and other affected local miscellaneous members will be notified by memorandum.
ALTERNATIVES
RECOMMENDATION
Alternative #1; amend the contract with PERS to provide Section 21024 (Military Service Credit as Public Service) for local miscellaneous members.
Prepared by:
Tammy M. Parkhurst
Human Resources Supervisor
Reviewed by:
David L. Nieto
Director, Human Resources
Approved by:
Robert S. LaSala
City Manager
Attachments
/tmp/negotiations/sea/RTC PERS Contract Amendment
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