FROM: Amy McInerny, Chief Financial Officer
SUBJECT: SBCERA Resolution No. 2023 -6 - Employer Pay Codes of
Employee Compensation
RECOMMENDATION:
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Adopt SBCERA Resolution No. 2023-6 - Employer Pay Codes of Employee Compensation.
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BACKGROUND:
The SBCERA Board of Retirement (Board) is required by Government Code sections 31461, 31542, 7522.10, and 7522.34, as well as Board Benefits Policy No. 26, Compensation Earnable and Pensionable Compensation, to determine what items of member compensation are included or excluded in employee compensation upon which appropriate contribution rates should be applied and upon which retirement benefits are calculated. When an employer presents a new pay item, SBCERA staff initially determines whether such items will be considered "compensation earnable" or "pensionable compensation," such determination will be effective immediately, subject to ratification by the Board.
On August 3, 2023, the Board reviewed and adopted Resolution No. 2023-5. Since the adoption of Resolution No. 2023-5, staff reviewed 15 additional pay item requests, in the normal course of business, and made an initial determination.
See Exhibit B - Summary of Changes to Pay Codes for an explanation of all items added and excluded. One pay item added by San Bernardino County is neither Compensation Earnable for Tier 1 nor Pensionable Compensation for Tier 2 because it is for work outside of normal working hours. Twenty-nine pay codes were added for CONFIRE, as a new employer, all of which were part of the County pay codes while CONFIRE was reporting under the County.
The resolution (Exhibit A) provides a redline version of the changes including Exhibits A through L, which set out, by Employer, the existing items of compensation, identified by employer codes, which will be included in compensation earnable for Tier I members, and Exhibit M sets out pensionable compensation for Tier II members, effective November 2, 2023, for all em...
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