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Home My WebLink AboutES08-107 - Other - Kent Police Officers Association - Police Captains and Lieutenants - MOU Regarding Deferred Compensation and Retirement Health Savings Account Contributions - 03/16/2009 MEMORANDUM OF UNDERSTANDING By and Between the CITY OF KENT and the KENT POLICE OFFICERS ASSOCIATION Representing the POLICE CAPTAINS AND LIEUTENANTS Regarding DEFERRED COMPENSATION and RETIREMENT HEALTH SAVINGS ACCOUNT CONTRIBUTIONS This Memorandum of Understanding ("MOU") is entered by and between the City of Kent ("City") and the Kent Police Officers Association representing the Police Captains and Lieutenants bargaining unit ("KPOA") to memorialize an agreement reached between the City and the KPOA regarding the City's contribution into each bargaining unit member's 457 Deferred Compensation plan and/or Retirement Health Savings ("RHS") account. This MOU amends the current Captains and Lieutenants May 1, 2008 to December 31, 2011 collective bargaining agreement ("CBA") and where this MOU conflicts with current CBA, policies, procedures and practices, this MOU shall control during the effective period of this MOU, and except as amended by this MOU, the CBA and all City or department policies, procedures and practices shall remain in full force and effect. le Section 1. Purpose A. Under the terms of the current CBA, Section 17.9. Deferred Compensation, the City of Kent contributes three percent (3%) of the Police Lieutenant's base pay into each bargaining unit member's 457 Deferred Compensation program each pay period. B. Additionally, under Section 19.7. Retirement Health Savings Account (RHS) of the CBA, members of the bargaining unit, in lieu of having the City contribute into the members' Deferred Compensation program, could elect to have their City contribution deferred Into their RHS account. Subsequently, effective November 1, 2008, the bargaining unit elected the following deferment options into members' RHS accounts: 1) Under Age 50 - 3% base pay per check (equals City contribution of 3% at the Lieutenant's base pay rate In lieu of Deferred Compensation contribution and remainder to be deducted from employee's base pay); 50% of yearly sick leave buy back; and 50% of leave cash outs upon retirement/termination (Sick & Vacation) C\Documents and Settings\reline\Local Settings\Temporary Internet Files\Content 0ut1ook\15SXR3LL\2009 Deferred Comp-RHS MOU 2 doc City of Kent and KPOA MOU re: 2009 Deferred Compensation & RHS Page 2 of 4 2) Age 50 to 59 - 6% base pay per check (equals City contribution of 3% at the Lieutenant's base pay rate In lieu of Deferred Compensation contribution and remainder to be deducted from employee's base pay); 100% of yearly sick leave buy back; and 100% of leave cash outs upon retirement/termination (Sick & Vacation) 3) Age 60 and up -No contribution per check; and 100% of cash outs upon retirement (Sick &Vacation) C. The bargaining unit has elected to voluntarily change the terms of the current CBA in order to assist the City of Kent to address its budgetary shortfalls for the 2009 fiscal year. Section 2. Amendment Except for those members who choose to participate in the Retirement Commitment exemption process established below, KPOA Members waive their CBA rights to the City's contribution into their individual 457 deferred compensation program as outlined in Section 17.9. Deferred Compensation, of the CBA between March 16, 2009 (for the April 5, 2009 pay check) through December 15, 2009 (for the December 20, 2009 pay check) (collectively, the "Effective Period" of this MOU). As a result, the City will not make deferred compensation contributions for bargaining unit members during this MOU's Effective Period, except for those members exempted as provided below. The City shall resume its contribution, as specified in Section 17.9. Deferred Compensation of the CBA, effective December 16, 2009 (for the January 5, 2010 pay check). For those members who have elected to have their City contribution deposited into their RHS account in lieu of their 457 deferred compensation program, the City will not be making any contribution into those members' RHS accounts during the Effective Period. For those members using the RHS option, the total contribution into each member's RHS account, as outlined in Section 1.13 above, will remain unchanged, but the full amount shall be deducted directly from the member's pay. Section 3. Exemption For Retirement Commitment and Waiver Process The City's deferred compensation and RHS contributions are regarded as compensation and are reported as such to the Washington State Department of Retirement Systems, Law Enforcement Officers and Fire Fighters Plan 2, LEOFF 2, and any waiver of deferred compensation or RHS contributions could affect the final average compensation of members of the KPOA who intend to retire in the near future. C\Documents and Settings\reline\Local Settings\Temporary Internet Files\Content 0utlook\I5SXR3LL\2009 Deferred Comp-RHS MOU 2 doc City of Kent and KPOA MOU re: 2009 Deferred Compensation & RHS Page 3 of 4 However, all members of the bargaining unit are required to adhere to the same RHS participation rules established for the bargaining union. No deviations, exceptions or exemptions are allowed under IRS regulations. Therefore, members of the KPOA who have committed to retiring from the City of Kent Police Department (' KPD") on or before December 31, 2010, may be exempted from the deferred compensation portion of this MOU. This means that members exempt from this MOU will have the City's contribution deposited into their 457 Deferred Compensation program, not the RHS program, during the Effective Period. If, for any reason, the member exercises these exemption rights but does not retire on or before December 31, 2010, the member shall be responsible to repay the City for its contributions into the member's deferred compensation program during the Effective Period. This repayment shall be completed by withholding a pro rata share of the total amount due during the member's remaining pre-retirement pay period(s) or over a three-month period, whichever occurs first. All payroll amounts deducted from a member's pay check(s) shall be prior to any other designated deferrals or deductions, except as may be provided by law. The retirement commitment must be submitted in writing by March 31, 2009, by completing the following form: I, , hereby submit this notice as my commitment to retire from the City of Kent Police Department (KPD) on or before December 31, 2010. I, as a member of the KPOA, request to be exempted from the Deferred Compensation MOU dated and signed March , 2009 due to my impending retirement as follows: Employee Name: Rank/Position Title: Anticipated Date of Retirement: In signing below, I understand that if my actual date of retirement from the KPD is after December 31, 2010, I will be responsible to repay the City for the deferred compensation contributions the City makes on my behalf during the Effective Period of the Deferred Compensation MOU. In so doing, I authorize the City to structure my j repayment of the City deferred compensation contributions by withholding a pro rata share of the total amount due during my remaining pre-retirement pay period(s) or over a three-month period, whichever occurs first. The deduction from my pay check(s) shall be prior to any other designated deferrals or deductions, except as may be provided by law. C\Documents and Settings\rclme\Local Settings\Temporary Internet Files\Content Outlook\I5SXR3LL\2009 Deferred Comp-RHS MOU 2 doc City of Kent and KPOA MOU re: 2009 Deferred Compensation & RHS Page 4 of 4 Signatures: Employee Date Witness Date Once the written retirement commitment is received by the City, the City shall not apply the terms of this MOU and shall follow the original terms of the member's current CBA, Section 17.10. Deferred Compensation, by continuing to make its contribution into the member's deferred compensation program. Section 3. Signatures By signature below, the parties agree that the above represents the parties' full and entire agreement with regard to Deferred Compensation and Retirement Health Savings account contributions by the City of Kent on behalf of bargaining unit members. The parties also agree that this MOU does not set a precedence, will not be binding on either party's future actions, nor does it waive either party's right to bargain over wages, hours and working conditions as provided by statute. AGREED AND SIGNED this I day of March, 2009. FOR THE CITY: FORTH E KPOA: ze Cooke Jeff Cobb 43 G ayQ KPOA P4si ent Qt,"�L044A � 4� �, Z 7 /S `05 Anh Hoang Bob Cline Labor Relations ger KPOA Representative C\Documents and Settings\rcline\Local Settings\Temporary Internet Files\Content 0ut1ook\I5SXR3LL\2009 Deferred Comp-RHS MOU 2 dot