FROM: Amy McInerny, Chief Financial Officer
SUBJECT: SBCERA Resolution No. 2024-4 - Employer Pay Codes of
Employee Compensation
RECOMMENDATION:
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Adopt SBCERA Resolution No. 2024-4 - 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 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 May 2, 2024, the Board reviewed and adopted Resolution No. 2024-2. Since the adoption of Resolution No. 2024-2, staff reviewed 8 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.
Pay item D06 - Lab Tech $10/Call has been updated to reflect its reason for exclusion. It was previously excluded as an Alameda item. After additional information from the employer received on October 23, 2024, the work associated with the pay code is a form of overtime. The Board's policy in interpreting the laws is that overtime, regardless of how paid (i.e. piecemeal), is not Compensation Earnable.
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 ...
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