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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Employee and Public Services Department
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DATE:
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September 14, 2001
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BOARD MEETING DATE:
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October 2, 2001
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TO:
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Honorable Board of Supervisors
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FROM:
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John L. Maltbie, County Manager
Mary Welch, Employee and Public Services Director
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SUBJECT:
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Resolution Authorizing Active Members to Transfer to Retirement Plan 2 or Modified Plan 2 All County Service Rendered Under Plan 3
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Recommendation
Adopt a resolution authorizing employees to transfer to Retirement Plan 2 or Modified Plan 2 all County service rendered under Retirement Plan 3.
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Background
In the 1999 negotiations, the County agreed with AFSCME, SEIU and BCTC to support a resolution that would allow the County to negotiate and implement, at a future date, an option that would allow employees who convert from Plan 3 to Plan 2 or Plan 4 to buy back service time in Plan 3, with the employees paying the full cost of any such buy back. AFSCME Local 829 has requested that the County take action to implement this option now, rather than at a future date, since the entire cost of this option would be borne by employees with no cost to the County.
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Discussion
When employees are hired into regular County positions, they have the option of participating in either of two retirement plans. One of these plans, Plan 3, is a non-contributory plan with reduced benefits. Employees who opt for Plan 3 usually do so because they do not envision a career with the County or because they are trying to maximize take home pay for reasons of financial need. After working for the County for several years, some of the employees who opted for Plan 3 decide that they do want to make the County a career and desire a more traditional retirement plan.
In 1997, the Board adopted a resolution allowing employees hired after July 13, 1997, the option to transfer from Plan 3 to Plan 2/4 after working for the County for 5 years. This option has helped to retain employees who might otherwise have left the County to secure a traditional retirement plan. Currently, there is no option that would allow employees who have transferred from Plan 3 to Plan 2/4 to buy back their service time under Plan 3. This resolution would offer that option to employees who have converted from Plan 3 with the employees makings such an election paying the full cost of the buy back..
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Fiscal Impact
The total cost of this change will be paid by transferring employees. There is no County cost.
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cc:
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Members, Retirement Board
Linda Gregory, AFSCME Local 829
Mary Lee, SEIU Local 715
Carl Goff, Operating Engineers Local 3
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