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HomeMy WebLinkAbout07. Revisions to BP 003 - Hiring of District RetireesCentral Contra Costa Sanitary District Ila ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 3, 2015 Subject: PROPOSED REVISIONS TO BOARD POLICY NO. 003 — HIRING OF DISTRICT RETIREES Submitted By: Initiating Dept. /Div.: Teji O'Malley, Operations / Human Resources Human Resources Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION: A. Sasaki — Deputy General Manager / Director of Operations Roger S. Bailey General Manager ISSUE: As a result of the audit conducted by the Contra Costa County Employees Retirement Association ( CCCERA), revisions are necessary to Board Policy (BP) No. 003 - Hiring of District Retirees to include mandates set forth by the Public Employees' Pension Reform Act (PEPRA). RECOMMENDATION: Approve revisions to BP No. 003 - Hiring of District Retirees. FINANCIAL IMPACTS: None. ALTERNATIVES / CONSIDERATIONS: Do not adopt the revisions to the policy. This is not recommended, as the policy would not be in compliance with PEPRA. BACKGROUND: CCCERA conducted a thorough audit of District records to ensure that the employee and compensation data utilized to calculate retiree pension benefits is accurate and verifiable. The audit concluded that the District is in compliance with all provisions of the California Employees Retirement Law of 1937 (CERL) and CCCERA policies, with the exception that BP No. 003 - Hiring of District Retirees did not reflect the changes mandated by PEPRA. Staff revised the policy to include those mandates and submitted it to CCCERA as a part of the District's response to the audit. CCCERA has reviewed the revised policy and made a determination that the policy is in compliance and accurately reflects PEPRA mandates. Staff is now submitting the revised policy to the Board for adoption. A strikeout and final version of the policy is attached. COMMITTEE RECOMMENDATION: The Administration Committee reviewed the Policy on August 10, 2015 and recommended Board approval of the revisions. POSITION PAPER Board Meeting Date: August 6, 2015 subject: PROPOSED REVISIONS TO BOARD POLICY NO. 003 — HIRING OF DISTRICT RETIREES RECOMMENDED BOARD ACTION: Approve revisions to BP No. 003 - Hiring of District Retirees. Attached Supporting Documents: 1. Strikeout of BP 2. Final proposed BP N: \GM \Christina \Teji \PP - Revisions to Policy BP 003.docx Page 2 of 2 Number: BP 003 Authority: Board of Directors, CCCERA Effective: May 18, 2006 Revised: August 6. 2015 SeptembeF ! 4 2n1-0 Reviewed: Initiating Dept. /Div.: Human Resources BOARD POLICY www.centralsan.org Attachment 1 � HIRING OF DISTRICT RETIREES Formatted: Right: 1.38" PURPOSE To establish a policy for the hiring back of District retirees. POLICY The District may occasionally may -hire a retired employee for legitimate business reasons. The District may wish to hire without reinstatement to the retirement system, a former District employees afteF FetiFe, eR 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 &e work ofef -a limited duration. fo r the ll hpnpfmt t4f thp iz�tinn ti The intent of the District in hiring any District retiree is to address a short-term needed beRefiGial d st effeGtiVe + the D « • a, 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 the State of Galifemia dictate many of the rules governing the hiring of District retirees. The District may hire District FetiFees sub'e(. +retirees subject to the following conditions: undeFeae of the The reitiree cannot work more than 960 hours per fiscal year. The 960 hour Formatted: No underline limit is inclusive for any service(s) performed by the retiree for any employer Formatted: Font: sad, No underline that is governed by the County Employees' Retirement Law (CERL) Number: BP 003 HIRING OF DISTRICT RETIREES Pagee2of3 BP 003 Page 2 of 3 The retiree's hourly rate of pay cannot be less than the minimum of or exceed the maximum of the published salami range for the iob 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 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 .. 1 91 - - Number: BP 003 HIRING OF DISTRICT RETIREES Page 3 of 3 BP 003 Page 2of3 Number: BP 003 Authority: Board of Directors, CCCERA Effective: May 18, 2006 Revised: August 6, 2015 Reviewed: Initiating Dept. /Div.: Human Resources BOARD POLICY HIRING OF DISTRICT RETIREES PURPOSE To establish a policy for the hiring back of District retirees. POLICY Attachrrient 2 www.centralsan.org The District may occasionally 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 for 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 of 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. Number: BP 003 HIRING OF DISTRICT RETIREES Page 2 of 2 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 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.