HomeMy WebLinkAboutES06-016 - Other - AFSCME 2006-2008 Labor Agreement - 01/02/2007 - MOU - RHS and Sick Leave Incentive Records M , --- gern
KENT =_-= Document
WASHINGTOX --
CONTRACT COVER SHEET
This is to be completed by the Contract Manager prior to submission
to City Clerks Office. All portions are to be completed.
If you have questions, please contact City Clerk's Office.
Vendor Name: AFSCME
Vendor Number:
JD Edwards Number
Contract Number: � S06 - CA 6
This is assigned by City Clerk's Office
Project Name: Memorandum of Understanding - RHS & Sick Leave Incentive
Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ® Contract
❑ Other:
Contract Effective Date: 1/02/2007 Termination Date:
Contract Renewal Notice (Days):
Number of days required notice for termination or renewal or amendment
Contract Manager: S Viseth Department: ES
Detail: (i.e. address, location, parcel number, tax id, etc.):
S Public\RecordsManagement\Forms\ContractCover\adcc7832 1 11/08
MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN
THE CITY OF KENT (CITY)
AND
WASHINGTON STATE COUNCIL OF COUNTY AND CITY EMPLOYEES,
AFSCME, AFL-CIO, LOCAL #2617 (UNION)
This Memorandum of Understanding (MOU) represents the parties' agreement to amend
Sections 24.3 — Retirement Health Savings and 19.8 — Sick Leave Incentive Program.
The parties are aware that the City is in the process of designing and implementing a
Retirement Health Savings (RHS) account for employees of the City. The program, including its
plan design and deduction/deferment/contribution options are currently under review by the
Internal Revenue Service (IRS). Once the City's plan design and deferment options have been
approved, it is the City's intent to implement this RHS program. Until the official IRS ruling is
received by the City, the parties have agreed to the following:
• All provisions of Section 24.3 — Retirement Health Savings will be placed on hold.
• As outlined in Section 19.8— Sick Leave Incentive Program, the City has requested
• for employees of this bargaining unit to have the option to defer their annual sick
leave incentive payout into their RHS plan in lieu of receiving cash payments
beginning with the 2006 sick leave incentive payouts. If this option is approved by
the IRS, the City will implement the option as soon as it is feasible. The IRS has not
made a ruling by the 2006 sick leave incentive payouts (January 2007) therefore,
the City will notify members of the bargaining unit, who meet the requirements to
receive an incentive payout, of the amount of incentive payout they qualify for. This
is to provide the bargaining unit members the information they need in order to
place the payout amount in another tax deferred program (i.e. deferred
compensation), if they so choose. It shall be the responsibility of the bargaining unit
member to make the necessary benefit changes to effectuate their election.
• If the IRS approves a modified deferral method, the City will discuss such
modifications with the bargaining unit
• At no time will the City be obligated to implement any RHS plan design or deferment
option(s), which may be in violation of IRS rulings or codes.
The above represents the parties' full agreement with regards to the implementation of a RHS
plan.
•
By signature below, all parties agree with the provisions of this agreement.
• Signed this day of January, 2007.
For the Union: For the City:
AA 12�1
Ethan Fineout, Staff Representative Anh Hoang, Labor Relat' n Manager
- 96,17
Debra LeRoLocal President Cami Eckhart, H.R. Analyst
•