55E - RESO - AMEND PARS TRUST PLAN

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 24, 2011 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ? As Recommended ADOPT A RESOLUTION TO AMEND THE PARS TRUST El Amended El Or dinance on 15t Reading PLAN TO INCLUDE INCUMBENT POLICE OFFICERS ? Ordinance on 2nd Reading ASSOCIATION (POA) PRESIDENT ? Implementing Resolution ? Set Public Hearing For_ () ?J? CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Adopt a resolution to amend the Public Agency Retirement Services ("PARS") Trust fund to allow the incumbent POA President to participate under the plan. DISCUSSION The City created a PARS Trust Plan on April 18, 2011, to provide a stipend for twenty-five (25) POA retirees that were denied reportable compensation under the California Public Employee Retirement System (CaIPERS) for salary increases they received in exchange for participating in an unpaid furlough program. A similar situation has occurred with the incumbent POA President who has been denied reportable compensation for a special assignment pay premium ("Union Pay") he was receiving as the POA President. The incumbent POA President began receiving Union Pay effective September 16, 2007, as part of his compensation, and this premium was reported to CaIPERS accordingly. However, during a recent audit by CaIPERS, the City was notified that the Union Pay premium did not meet the definition of compensation. Therefore, the City and POA negotiated an alternate method of providing a stipend to the incumbent POA President that will reflect the actual salary he would have received upon retirement. The City proposes to amend the current plan document with the Public Agency Retirement Services ("PARS") Trust fund to include the incumbent POA President. No additional retirees will be eligible to participate in the supplementary retirement plan. 55E-1