HomeMy WebLinkAboutOCSD 12-16RESOLUTION NO. OCSD 12-16
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY
SANITATION DISTRICT ADOPTING REQUIREMENTS SET FORTH BY THE PUBLIC
EMPLOYEES PENSION REFORM ACT ("PEPRA") OF 2013 FOR UNREPRESENTED
EMPLOYEES.
WHEREAS, for purposes of this resolution, unrepresented employees include
confidential, management and executive employees. Confidential employees consist of
employees who with authorized access, assist and act in a confidential capacity to and for
persons who formulate, determine, and effectuate manag~ment policies with respect to
carrying out the Board of Directors' direction for labor relations. Management employees
serve as organizational leaders and oversee staff within particular divisions and/or
workgroups to align performance outcomes with the strategic goals of the agency.
Executive management employees provide executive leadership, strategic direction, and
department oversight for OCSD.
WHEREAS, on September 12, 2012, Governor Jerry Brown approved Assembly Bill
340 ("AB340"), The Public Employees' Pension Reform Act ("PEPRA"), which amends the
County Employees Retirement Law ("CERL") of 1937 that Orange County Sanitation
District's pension plan administrator, Orange County Employees Retirement System
(OCERS), is governed by.
WHEREAS, PEPRA establishes a new retirement formula that cannot be exceeded
by a public employer offering a defined benefit pension plan, setting the maximum benefit
allowable for employees first hired on or after January 1, 2013, as a formula commonly
known as 2.5% at age 67 for non-safety members.
WHEREAS, PEPRA requires public employees who are first employed on and after
January 1, 2013, and who contribute to a defined benefit plan to contribute at least one-half
of the annual actuarially determined normal costs, and would prohibit a public employer from
contributing in any fiscal year, in combination with employee contributions, less than the
plan normal cost, except as specified.
WHEREAS, the amount of pensionable compensation upon which a defined benefit
for new members could be based would be limited to an amount determined under a
specified provision of federal law for an employee whose service is included in the federal
system (Social Security), which is $110,100 for 2012, and 120% of that amount for an
employee whose service is not included in the federal system. These amounts would be
adjusted annually, as specified.
WHEREAS PEPRA prohibits a variety of payments, including unscheduled overtime,
payments for unused vacation, sick leave, or compensatory time off, exceeding what may
be earned and payable in each 12-month period during the final average salary period, and
specified payments made at the termination of employment from being included in
compensation earnable. The bill would require the board to establish a procedure for
assessing and determining whether an element of compensation was paid to enhance a
member's retirement benefit and would prohibit that compensation from being included in
compensation earnable.
WHEREAS, in addition to the previously noted mandates, PEPRA also establishes
other mandates regarding public sector pension plan benefits that apply to the Orange
County Sanitation District.
NOW, THEREFORE, in consideration thereof, the Board of Directors of the Orange
County Sanitation District, does hereby resolve declare, determine and order as follows:
Section 1. The applicable aforementioned PEPRA legal requirements shall
apply to individuals who become unrepresented Orange County Sanitation District
employees as of January 1, 2013.
PASSED AND ADOPTED at a regular meeting held December 19, 2012.
ATTEST:
Maria E. Ayala, Clerk of the Board