FROM: Amy McInerny, Chief Financial Officer
SUBJECT: SBCERA Resolution No. 2026-7 – Employer Pay Codes of
Employee Compensation
RECOMMENDATION:
title
Adopt SBCERA Resolution No. 2026-7 – Employer Pay Codes of Employee Compensation.
body
BACKGROUND:
The SBCERA Board of Retirement (Board) is required by Government Code sections 31461, 31542, 7522.10, and 7522.34, as well as 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 October 1, 2026, the Board reviewed and adopted Resolution No. 2026-6. Since the adoption of Resolution No. 2026-6, staff reviewed one additional pay item request, in the normal course of business, and made initial determinations. The Pay Code Resolution is before the Board at its November 5, 2026, for consideration of the inclusion of Designated Staff Assignment under the Memorandum of Understanding Fire Management Unit (2025 – 2030). This proposed inclusion represents a change from the Board’s prior action, which adopted staff’s recommendation to exclude DSA Pay from compensation earnable and pensionable compensation. Staff’s prior determination was based on language contained in the applicable MOU and the information available at the time. Specifically, the pay appeared to be discretionary and ad hoc, as eligibility was contingent upon the Fire Chief’s designation of certain staff assignments rather than being uniformly available to similarly situated employees within the same grade or class. Additionally, the MOU did not clearly e...
Click here for full text