FROM: Barbara Hannah, Chief Counsel
SUBJECT: Exclude Canine Pay as compensation earnable.
RECOMMENDATION:
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Exclude Canine Pay as compensation earnable for Tier I members of SBCERA, effective as of January 1, 2013 and adopt Resolution 2021-9.
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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. 026, "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.
On September 3, 2020, staff presented to the Board the Employer Pay Code Resolution, which removed items from the Resolution that are required to be excluded as a result of the Board's implementation of the Alameda decision. Staff further requested that canine officer pay be excluded from compensation earnable as it is for additional services rendered outside of normal working hours. The Board approved the Resolution, but required further information regarding canine officer pay in order to determine whether such item should continue inclusion as compensation earnable based on the Alameda decision.
On October 1, 2020, after staff received additional information from the County regarding Canine Pay1 (Exhibit A and B), staff recommended that the Board exclude Canine Pay as compensation earnable for Tier 1 members effective January 1, 2013. The Board approved continuing the item to a future Board meeting and then-Chair Rutherford appointed an ad hoc committee consisting of Trustees Basle and Bracco to further review Canine Pay with staff.
Ad Hoc Committee Procedural History
The ad hoc committee held meetings on January 11, 2021, April 6, 2021, and August 4, 2021. Staff presented to the committee the information received from the County (Exhibits A, B, and D), specifica...
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