FROM: Debby Cherney, Chief Executive Officer
Amy McInerny, Chief Financial Officer
SUBJECT: Updated Participating Employer Agreement with CSAC
RECOMMENDATION:
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Approve the Participating Employer Agreement with California State Association of Counties effective July 1, 2025; Authorize the Chief Executive Officer to execute the agreement, subject to non-substantive changes approved by Chief Counsel.
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BACKGROUND:
On August 28, 1981, the California State Association of Counties (CSAC) adopted a resolution for inclusion in SBCERA, and on October 1, 1981, SBCERA admitted CSAC as a participating employer. In 2024, SBCERA discovered employees of various CSAC affiliated entities have been included and reported as members of SBCERA, with the requisite employer and employee contributions being made. The affiliate entities are not technically Participating Employers of SBCERA, and there are some discrepancies in the documentation as to whether the employees of those affiliates are actually employees of CSAC. In all instances, CSAC provided documentation that the employees who are SBCERA members receive a W-2 from CSAC.
Staff, with the assistance of Hanson Bridgett, and CSAC, with its counsel, have negotiated a new plan sponsor agreement, a copy of which is attached as Exhibit A. This agreement provides for the following key terms:
1. After July 1, 2025, any affiliate of CSAC, will be required to be an approved participating employer of SBCERA if it elects to cover future employees of such affiliate under SBCERA.
2. CSAC will be transferred to its own cost group, effective July 1, 2025.
3. A list of employees of CSAC, active, deferred, and retired, shall be agreed upon between SBCERA and CSAC. For CSAC to enroll any new employees on or after July 1, 2025, CSAC will be required to certify that such employee is performing services primarily for CSAC. CSAC will be required to cooperate with SBCERA data requests to ensure compliance. I...
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