HomeMy WebLinkAboutHR1996-0114 - Other - Kent Firefighters Local 1747, IAFF - 1996-1998 Collective Bargaining Agreement - MOU regarding Matching Deferred COmpensaiont Plan LEOFF II MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN
THE CITY OF KENT AND FIRE FIGHTERS LOCAL 1747
The City and the Union have met and discussed the implications and impacts of
Appendix A, SECTION NINE - MATCHING DEFERRED COMPENSATION PLAN,
LEOFF II Employees Hired Prior to April 1, 1986 of the Fire Fighters contract effective
January 1, 1996 to December 31, 1998.
The parties agree by signature to this Memorandum of Understanding to the points
listed below addressing the contractual obligations of both parties.
The following facts have led up to this agreement:
The current labor contract calls for the City and Union to jointly petition the Social
Security Administration on behalf of the LEOFF II employees hired prior to April 1, 1986
for their inclusion in the Old Age Security Insurance (OASI) program (commonly known
as medicare). If the employees are not participating in the OASI program by January 1,
1997, the City will make additional matching contributions, at a rate of one for one, to
the City's deferred compensation plan, for the affected employees. The City will pay
the percentage equivalent, applied to eligible gross pay, of the FICA OASI tax, which is
1.45% under current law, as its matching portion. In order to receive the match, eligible
employees must also contribute the employee's percentage equivalent of FICA OASI
tax. If, in the future, participation by the affected employees in the OASI program is
obtained, the City's additional matching contribution to the deferred compensation plan
will cease.
The City and the Union are actively working with the State Social Security office
representative to petition for a referendum and vote for inclusion into medicare.
The response from the State has been positive in terms of allowing the eligible
fire members to be included in medicare once a favorable vote is achieved.
Both parties understand that the intent of this matching deferred compensation
contribution is to compensate eligible employees of the Union only if the State rejects
the eligible Union members' favorable vote for inclusion into medicare.
Therefore, to streamline the administrative process involved in administering a gross
OASI eligible wages match into deferred compensation to be effective January 1, 1997
until the vote is complete, the parties mutually agree to the following:
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The medicare committee composed of City and Union representatives will
continue to work with State officials to implement a referendum and vote for eligible
Union members.
The matching of funds by the City and eligible Union employees into the
employees' voluntary deferred compensation program equivalent to medicare
contributions of eligible gross pay, which is 1.45% under current law, will not be
implemented on January 1, 1997.
Once a vote is held and if the result is favorable, the City and eligible employees
will commence contributions into medicare as determined by the State. In addition, the
City will calculate all eligible employees' gross OASI eligible wages as of January 1,
1997 to the effective date of medicare participation and pay the employees the
equivalent of the City's share of OASI medicare contributions.
Once a vote is held and if the result is unfavorable, the City will calculate all
eligible employees' gross OASI eligible wages as of January 1, 1997 to the date of the
unfavorable medicare vote and pay the employees the equivalent of the City's share of
OASI medicare contributions. This will be a one time lump sum payment. This City
match will not continue after the one time payment.
The terms above fully outline both parties' understanding of this agreement.
Dated this 8th day of November , 1996.
For the City of Kent: For the Fire Fighters, I.A.F.F Local 1747:
Sue Viseth, Human Resources Director Greg ley, Unio Pre 'dent
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