2018 - 2019 Local 39Memorandum of Understanding: Article 18: Compensation Benefits

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What’s on this Page

• 18.1 Mileage Reimbursement
• 18.2 Deferred Compensation
  
  • 18.2.1 Deferred Compensation – Voluntary
  • 18.2.2 Deferred Compensation – County Paid Program
  • 18.2.3 Deferred Compensation – Employee Appeal
  • 18.2.4 Deferred Compensation – Non-Grievability
  • 18.2.5 Deferred Compensation – Program Modification
• 18.3 S414(h)(2) - Tax Deferred Retirement Contribution

Read Next: Article 19: Layoff and Restoration

An employee who is authorized to use a motor vehicle for travel required in the performance of County work shall be reimbursed at the standard IRS business mileage rate.

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18.2.1  Deferred Compensation – Voluntary

The County agrees to maintain the current deferred compensation plan for bargaining unit members eligible under Federal law and the rules of the deferred compensation plan.  Nothing herein renders County liable to the Union or any employee for a discontinuance of Internal Revenue Service or Franchise Tax Board approval of any County deferred compensation plan or portion thereof.  The County and the Union agree to meet upon request of either party during the term of this Memorandum to consider the development of additional mutually agreeable deferred compensation investment options.

18.2.2  Deferred Compensation – County Paid Program

Effective the first full pay period following Board of Supervisors adoption of a successor MOU, the County shall deposit .25% of the biweekly base salary of each employee of this bargaining unit into the County-provided 457 unless regulations prevent contributions, then contribution will be made to 401(a) Deferred Compensation account, provided that the employee is in paid status for at least 50% of the employee’s regular work schedule in a pay period. Nothing in this Memorandum renders the County liable to any employee for continuance of the current deferred compensation plan in the event of a discontinuance of Internal Revenue Service or Franchise Tax Board approval of any County deferred compensation plan or portion of the plan or the employee becoming ineligible to participate in the deferred compensation plan. County paid deferred compensation under this Subsection 18.2.2 shall not be included in the calculations of retirement benefits.

The County will establish a County-paid 457 Deferred Compensation Plan for bargaining unit members eligible under federal law and plan rules.

18.2.3  Deferred Compensation – Employee Appeal

Employees may appeal to the Deferred Compensation Advisory Committee should they have a complaint regarding the administration of the program.

18.2.4  Deferred Compensation – Non-Grievability

The only deferred compensation issue that is grievable or arbitrable is whether the County has made its contribution.

18.2.5  Deferred Compensation – Program Modification

Nothing herein renders the County liable to the Union or any employee for a discontinuance of Internal Revenue Service or Franchise Tax Board approval of any County deferred compensation plan or portion thereof, or the employee becoming ineligible by law or the rules of the plan, to participate in the deferred compensation program(s).

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All employees who belong to the retirement system shall have their wages adjusted according to Section 414(h)(2) of the Internal Revenue Code which will have the effect of deferring Federal and State income taxes on the retirement contributions.

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