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HomeMy WebLinkAboutR-1995-053 1995-1997 Collective Bargaining Agreement• • • RESOLUTION NO. R-95- 53 A RESOLUTION authorizing the City Manager and City Clerk of the City of Yakima to execute an Amendment to 1995-1997 Collective Bargaining Agreement for Yakima Police Patrolmans Association. WHEREAS, the City of Yakima, hereinafter the "City," and the Yakima Police Patrolmans Association, hereinafter the "Association," negotiated, bargained for, and entered into a Collective Bargaining Agreement for the period of January 1, 1995 through December 31, 1997, hereinafter the "CBA", and WHEREAS, Article 36 of the CBA provides an optional deferred compensation program for Association members; and WHEREAS, the City and the Association intended that said deferred compensation would be considered and included to the extent legally possible for purposes of LEOFF retirement contributions and pension calculations; and WHEREAS, the Washington State Department of Retirement Systems has indicated that, because of the optional nature of said deferred compensation program, said deferred compensation cannot be considered and included for purposes of LEOFF retirement contributions and pension calculations; and WHEREAS, the Washington State Department of Retirement Systems has indicated that said deferred compensation would be considered and included for purposes of LEOFF retirement contributions and pension calculations if the deferred compensation program was made mandatory and not optional, and WHEREAS, the City and the Association desire to amend the CBA to make the deferred compensation program mandatory so that the deferred compensation shall be considered and included in LEOFF retirement contributions and pension calculations; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to enter into the proposed Amendment to 1995-1997 Collective Bargaining Agreement for Yakima Police Patrolmans Association, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and City Clerk are hereby authorized and directed to execute the attached and incorporated Amendment to 1995-1997 Collective Bargaining Agreement for Yakima Police Patrolmans Association. Page 1 (la tree/collective bar alninp.pm ADOPTED BY THE CITY COUNCIL this 28th day of March , 1995 ATTEST City Clerk Page 2 (islres/collectiVa bar4ainin4 Da Mayor • • • AMENDMENT TO 1995-1997 COLLECTIVE BARGAINING AGREEMENT FOR YAKIMA POLICE PATROLMANS ASSOCIATION THIS AMENDMENT to the existing Collective Bargaining Agreement is entered into by and between the CITY OF YAKIMA, Washington, a municipal corporation, hereinafter the "City," and the YAKIMA POLICE PATROLMANS ASSOCIATION, hereinafter the "Association." WHEREAS, the City and the Association negotiated, bargained for, and entered into a Collective Bargaining Agreement for the period of January 1, 1995 through December 31, 1997, hereinafter the "CBA", WHEREAS, Article 36 of the CBA provides an optional deferred compensation program for Association members, WHEREAS, the City and the Association intended that said deferred compensation would be considered and included to the extent legally possible for purposes of LEOFF retirement contributions and pension calculations, WHEREAS, the Washington State Department of Retirement Systems has indicated that, because of the optional nature of said deferred compensation program, said deferred compensation cannot be considered and included for purposes of LEOFF retirement contributions and pension calculations, WHEREAS, the Washington State Department of Retirement Systems has indicated that said deferred compensation would be considered and included for purposes of LEOFF retirement contributions and pension calculations if the deferred compensation program was made mandatory and not optional, WHEREAS, the City and the Association desire to amend the CBA to make the deferred compensation program mandatory so that the deferred compensation shall be considered and included in LEOFF retirement contributions and pension calculations NOW, THEREFORE, the City and the Association agree to amend Article 36 of the CBA to read in its entirety as follows Effective January 1, 1995, if the bargaining unit members contribute 1 0% or 1 5% of their monthly salary to deferred compensation, then the City will match the employee contribution with an equal amount of 1 0% or 1 5% maximum of their monthly salary Effective April 1, 1995, each bargaining unit member shall be paid, in addition to that employee's monthly salary, deferred earned compensation each month in an amount equal to 1 5% of said monthly salary Effective August 1, 1995, each bargaining unit member shall be paid, in addition to that employee's monthly Page 1 of 2 (ls)agr/collective bargaining pm salary, deferred earned compensation each month in an amount equal to 3 0% of said monthly salary Said deferred earned compensation is separate pay and is not part of the base monthly salary schedule codified in Yakima Municipal Code Pay and Compensation Ordinance, subsection 2 20 110 This provision is subject to the City's deferred compensation rules and regulations adopted by the City Council and IRS regulations, and the computation of retirement contributions and pension benefits shall be governed by applicable state law THIS AMENDMENT is executed by the parties this ` day of , 1995 YAKIMA POLICE PATROLMANS CITY OF YAKIMA ASSOCIATION By. l -m Pr dent By. By. CJ�cJ1Y��� U ATTEST. Secretary James Cline Attorney for Yakima Police Patrolmans Association Page 2 of 2 (ls)agr/collective bargaining pm Cit Tanager By. City Clerk nke Managem: t Attorney for City of akima CITY CONTRACT N0: LL`� (- 3) 1 ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. a For Meeting Of 3/28/95 Consideration of Ordinance amending the Management Group Tax Deferred Plan provided in City of Yakima Municipal Code Section 2.20.130, and Legislation amending the 1995-1997 Collective Bargaining Agreement (1995-1997 CBA) Between the City of Yakima and the Yakima Police Patrolmans Association (YPPA). SUBMITTED BY: Dick Zais, City Manager John Hanson, Director of Finance & Budget Paul T. McMurray, Asst. City Attorney Sheryl M. Smith, Deputy Personnel Officer CONTACT PERSON/TELEPHONE: John Hanson/575-6070 Paul T. McMurray/575-6030 SUMMARY EXPLANATION: For almost 20 years the City has provided an optional deferred compensation plan to management group employees. Recently, this optional deferred compensation plan was also provided to the members of the YPPA in the 1995- 1997 CBA. The mechanics of the plan are simple. In the event an eligible employee elects to defer a certain percentage of his/her monthly salary, the City automatically pays the employee additional deferred earned compensation by a like percentage of that employee's monthly salary up to a maximum of three percent. Thereafter, most mandatory deductions/withholdings (including state retirement contributions under RCW 41.26 or RCW 41.40) are calculated upon the employee's total earned compensation, including all deferred earned compensation. Likewise, pensions are calculated utilizing figures that included employees' deferred earned compensation. (Continued on Page 2) Resolution X Ordinance X Contract X Other(Specify) Funding Source r� APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Enact Ordinance and Resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Ordinance No. 95-18 (amends code) Resolution No. R-95-53 (amends labor contract) (1s)agenda/def comp.pm AGENDA STATEMENT (Page 2) Item No. For Meeting Of SUMMARY EXPLANATION: (Continued) The Washington State Department of Retirement Systems (WSDRS) now indicates that, because of the optional nature of the deferred compensation plan, said deferred earned compensation cannot be considered and included for purposes of RCW 41.26 (LEOFF) and RCW 41.40 (PERS) retirement contributions and pension calculations. The potential result of this interpretation is extensive benefits litigation and an accounting nightmare. However, the WSDRS agency indicates that the situation would be resolved and deferred compensation would be includable in retirement contribution and pension calculations if the deferred compensation plan was mandatory. Thus, the attached Ordinance and the 1995-1997 Collective Bargaining Agreement Amendment with the Yakima Police Patrolmans Association are intended to make the deferred compensation plan mandatory and avoid extensive and costly benefits litigation. The economic costs of implementing the mandatory deferred compensation plan is already budgeted for and would be extremely negligible. These are essentially housekeeping measures. (1s)agenda/def coap.pm