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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 •