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HomeMy WebLinkAbout04.1.a) District's response to CCCERA audit4.a. Central Sanitary District Protecting public health and the environment 5019 Imhoff Place, Martinez. CA 94553 -4392 March 17, 2015 District Response Update 130 report preparation procedures PHONE: (925) 228 -9500 to report all pensionable differentials as a FAX: (925) 335 -774=1 separate earn code items www. cenlralsan. org CCCERA aoc,Eas. BAILEY Attention: Wrally Dutkiewicz General Manager 1355 Willow Way, Suite 221 KIiNIONL.ALM Concord, CA 94520 Counsel 510)88.201Jt (3lOJ Af1R- 1011!1 Update 129 report preparation procedures ELAINE 12. BOEHMI; to report all employee positions changes Secretary of the Ni.sirict Dear Mr. Dutkiewicz, Personnel Advancements, all employee As instructed in your letter dated February 10, 2015, this letter serves as Central Contra Costa Sanitary District's formal response to the preliminary findings in the "Employer Review" that was conducted by the Contra Costa County Employees' Retirement Association ( CCCERA). Four items were noted during the course of the review that required follow -up and a response from the District. Each of the findings and the District's corresponding responses are detailed in the table below: CCCERA Finding District Response Update 130 report preparation procedures The District is currently revising its 130 to report all pensionable differentials as a report preparation procedures. The District separate earn code items will provide CCCERA, by April 25, 2015, a template of the revised 130 report prior to implementing the final changes to the report so as to ensure all conditions outlined in the finding have been met. Update 129 report preparation procedures With the exception of temporary (Out of to report all employee positions changes Class and Provisional assignments) and including temporary and provisional Personnel Advancements, all employee upgrades position changes are reported in the current 129 report. The District is currently revising its 129 report procedures to now include both Provisional assignments (more than 30 days) and Personnel Advancements. However, due to the very limited duration of Out of Class assignments (less than 30 days) and after consultation with you on March 12, 2015, the Out of Class assignments will be reported on the 130 report. The District will Sincerely, I (Llp- Teji O'Malley Human Resources Manager provide CCCERA, by April 25, 2015, a template of the revised 129 report prior to implementing the final changes to the report so as to ensure all conditions outlined in the finding have been met. Review District policy on hiring Distdct The District has updated its policy on the retirees and update to reflect the statutory hiring of District retirees. A copy of the limitations for post-retirement _em loyment revised policy is attached to this letter. Update District policy to reflect retirement The District has drafted a policy that benefit forfeiture by retirees that commit an details the forfeiture of retirement benefits employment related felony including a for those District employees that commit notification procedure to inform the an employment related felony and a retirement system when a covered felony notification procedure. A copy of the draft event and case disposition occurs. policy is attached to this letter. _ Please contact me, if after review, the District's responses to mitigate the issues set forth in the preliminary "Employer Review" are not sufficient. Sincerely, I (Llp- Teji O'Malley Human Resources Manager Revised: March 13, 2015 Sheet 1 of 2 Subject: POLICY AND PROCEDURE FOR HIRING RETIREES Established by: Randall M. Musgraves, Director of Administration Revised by: Teji O'Malley, Human Resources Manager The District occasionally may hire a retired employee for legitimate business reasons. The District may hire, without reinstatement to the retirement system, a former District employee if the retiree is needed due to an emergency situation that has the potential to halt critical public services or if they possess a skill set needed to perform specialized work of a limited duration. The intent of the District in hiring any District retiree is to address a short-term need and not as a means for providing on-going employment or income to the retiree. The Contra Costa County Employee Retirement Association (CCCERA) and Section 7522.56 of the California Government Code dictate many of the rules governing the hiring of District retirees. The District may hire District retirees subject to the following conditions: The retiree cannot work more than 960 hours per fiscal year. The 960 hour limit is inclusive of any service(s) performed by the retiree for any employer that is governed by the County Employees' Retirement Law (CERL). The retiree's hourly rate of pay cannot be less than the minimum or exceed the maximum of the published salary range for the job classification for which they are hired. The retiree will receive no service credit or retirement rights for the temporary assignment. If the retiree received any unemployment insurance compensation in the 12 months preceding the appointment, he or she is ineligible to be reemployed by the District. The retiree must wait 180 days following the effective date of retirement in order to be reemployed at the District UNLESS the District certifies that the appointment is necessary prior to conclusion of the 180 day waiting period and the action is approved Sheet 2 of 2 in a public meeting, by the Board of Directors. If the retiree received any retirement incentive from the District, he or she is ineligible to be hired prior to the 180 days, The Department Director most submit, in writing, justification to the Human Resources Division as to why the services of the retiree are needed. The Human Resources Division will determine if the justification warrants the hiring of the retiree and contact the retiree to complete CCCERA Form 213 (copy attached) to determine eligibility for reemployment. If the retiree is eligible for reemployment, Human Resources will process the appropriate hire paperwork The Human Resources Division is responsible for ensuring that all of the above- mentioned conditions have been met prior to the hiring of the retiree. M (XINtm COSTA cculmIccc Employees' Retirement Ass o'Jaiion nzr�! Certification for '�.�ost-Retirement Employment . • Use this form to certify eligibility to return to work as a retiree without reinstatement in CCCERA, Instructions * Complete the form in blue or black ink. CCCERA retirees cannot serve, be employed by, or be employed through a contract directly by any CCCERA employer without reinstatement from retirement, except as permitted by state law and Board of Retirement regulations, The information provided in response to Part A will determine the retiree's eligibility to provide services as a temporary employee or contractor. This form does not apply to retirees who wish to "unretireand be reinstated as an active member, This certification must be completed and filed p LL or to the first date of post - retirement employment. Contact CCCERA if there are any questions. _ The Expected Break in Service is the number of calendar days between your Date of Retirement and your Expected Date of Reemployment, Contra Costa County Employees' Retirement Association 1355 Willow Way, Suite 221, Concord, CA 94520 925-521-3960 • 925-646-5747 Fax • www,cccera.org Page I of 3 EForm 213 (Rev. 2013) 1. Did you or will you receive any unemployment insurance compensation within the 12 months prior to the expected date of reemployment? nYes(STOP — youarenoteffigib for this kind of reemployment at this time.- notify hiring department) M No (Continue to question 2) 2. Were you given any retirement incentive (e.g., a "golden handshake" such as an additional year of service) upon retirement? El Yes (Continue to question 3) El No (Skip to question 4) 3. If you answered 'Yes' to question 2, Is your Expected Break in Service at least 180 days? ❑ Yes (Continue to question 4) El No (STOP — you are not gtba for this kind of reemployment at this time; notify hiring department) 4. Were you at least CCCERA Normal Retirement Age (age 50 for Safety and age 55 for General) on your Date of Retirement? ❑ Yes ❑ No 5. Did you have a bona fide separation of service from your employer, which means: (a) Prior to retirement you had no prearrangement with your employer to return to work after retirement, and (b) Your break in service will be at least 90 days (or circumstances changed after retirement that caused you to return to work). ❑ Yes ❑ No (If you answered "No" to questions 4 and 5, CCCERA must suspend your retirement allowance upon your reemployment, notify hiring department) I - --- Part B: Terms of Post-Retirement Service (to be signed by retiree) -1 • 10% Additional Tax on Early Retirement Payments. I understand that if I am under age 59 Y2 and did not have a bona fide separation of service (see Part A question 5), my retirement allowance will be subject to a 10% additional tax under Internal Revenue Code Section 72(t) until I have a bona fide separation from service or attain age 59 Y2 • Limit of 960 hours of employment per fiscal year. Post-retirement employment shall not exceed a total of 960 hours each fiscal year for all service to any CCCERA employer. • Limits on hourly rate of pay. The rate of pay for the employment shall not be less than the minimum hourly rate nor greater than the maximum hourly rate as set forth on a published pay schedule for other employees performing comparable duties. * No service credit or other retirement benefits. The employee will not acquire any service credit or retirement benefits under such reemployment without reinstatement to active service and suspension of retirement benefits, certify that my answers to the questions in Part A are true and correct to the best of my knowledge. / also understand that my reemployment must be in compliance with the terms of Post-Retirement Service. Member Signature-- 4— - - - i - I Contra Costa County Employees' Retirement Association 1355 Willow Way, Suite 221, Concord, CA 94520 925-521-3960 • 925-646-5747 Fax * www.cccera.org Page 2 of 3 I. Did the retiree answer'Yes'to question I in Part A? ❑ Yes (Retiree is not eligible for this kind of reemployment at this time: check 'No' on the Determination of Eligibility below) ❑ No (Continue to question 2) 2. Is the retiree's Expected Break in Service at least 180 days? ❑ Yes (Retiree is eligible for reemployment: check 'Yes' on the Determination of Eligibility below) ❑ No (Continue to question 3) 3. Is the retiree eligible for one of the two exceptions to the 180 day waiting period listed below? ❑ Yes, exception _ (i or 4)* (Continue to question 4) ❑ No (Retiree is not .figib for this kind of reemployment at this time; check No'on the Determination of Eligibility below) 4. Did the retiree answer 'No' to questions 4 and 5 in Part A? ❑ Yes (Retiree must reinstate as an active member ofCCCERA upon reemployment; check No' on the Determination of Eligibility below) ❑ No (Retiree is eligible for reemployment; check 'Yes' on the Determination of Eligibility below) Determination of Eligibility: Based on the information provided by the retiree, the retiree is eligible for post-retirement employment on or after the Expected Date of Reemployment indicated on the front of this form. ❑ Yes, the retiree is eligible for reemployment ❑ No, the retiree is not eligible for this kind of reemployment at this time I further understand that reemployment must be in compliance with the Terms of Post-Retirement Service listed in Part B, Date - and Under the Government Code there are two exceptions to the 180 day waiting period that may apply to CCCERA retirees. 7522.56(f)(1) The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar. 7522.56(f)(4) The retiree is a public safety officer or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter. Employer: Send a copy of this completed certificate to the address below and save the original for your records, Contra Costa County Employees' Retirement Association 1355 Willow Way, Suite 221, Concord, CA 94520 925-521-3960 • 925-646-5747 Fax o www.cccera.org Page 3 of 3 W Central Contra Costa Sanitary District Subject: FORFEITURE OF PENSION BENEFITS AS A RESULT OF A FELONY CONVICTION AND REPORTING OF SUCH FELONY Established by: Teji O'Malley, Human Resources Manager After the passage of Public Employers Pension Reform Action (PEPRA) of 2013, all public employees, which includes District employees, are subject to the provisions set forth in California Government Code, Sections 7522.72 and 7522.74 which specifically speaks to the forfeiture of pension benefits which are governed by the Contra Costa County Employees' Retirement Association (CCCERA). These sections state that if a public employee is convicted by a state or federal court of any felony for conduct arising out of or in the performance of his or her official duties as a public employee or in connection with obtaining salary, disability retirement, service retirement, or other benefits, he or she shall forfeit all accrued rights and benefits in any public retirement system in which he or she is a member and shall not accrue further benefits in that public retirement system, effective on the date of the conviction. The rights and benefits shall remain forfeited notwithstanding any reduction in sentence or expungement of the conviction following the date of the employee's conviction. Rights and benefits attributable to the service performed prior to the date of the first commission of the felony for which the member was convicted shall not be forfeited. Any contributions made by the employee convicted of the felony shall be returned, without interest, to the employee upon the occurrence of a qualifying distribution event unless otherwise ordered by a court or CCCERA. An employee must notify the Human Resources Division within 60 days of the conviction and provide the following information: 1. The date of the conviction 2. The date of the first known commission of the felony The District and the employee must notify CCCERA of the felony conviction within 90 days of the conviction. 1 . Recover the forfeited rights and benefits as adjusted for the contributions received, 2. Redeposit those contributions and interest that would have accrued during the forfeiture period, as determined by a CCCERA actuary, and then recover the full amount of the forfeited rights and benefits.