HomeMy WebLinkAboutResolutions - 2000.03.22 - 26094March 9, 2000
MISCELLANEOUS RESOLUTION # 00042
By: Personnel Committee, Thomas A. Law, Chairperson
RE: Plan B Retirement Improvements
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland continues to explore opportunities to control personnel
costs while maintaining a competitive salary and benefit package; and
WHEREAS, in 1991 the Michigan Attorney General in Opinion Number 6697, Page 116,
confirmed that the County, without violating the State's constitutional protection of contractual
obligations, may modify retirement benefits to current members if it provides alternative benefits in
their place that are equal to or greater than the pension benefits that would have been limited or
withdrawn; and
WHEREAS, the Oakland County Board of Commissioners by Resolution Numbers 99254
and 99255 gave some employees an option to contribute to their Defined Contribution or Defined
Benefit Plan which would then allow additional benefits to accrue to the employee; and
WHEREAS, people known as Plan B Employees were not included in those options; and
WHEREAS, the Retirement Board of Oakland County recommends to the Board of
Commissioners that these Plan B Employees be given the opportunity to receive an equivalent
percentage increase to their retirement factor as provided in Resolution Numbers 99254 and 99255;
and
WHEREAS, changes to the Retirement System require approval of the State of Michigan
County Pension Plan Committee in addition to the authorization by the County Board of
Commissioners; and
WHEREAS, the Oakland County Retirement System has sufficient furiding that no
contribution for the change will be required from the General Fund.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
of the County of Oakland shall offer to members of Benefit Group General — Option B who are not
represented employees and represented employees whose collective bargaining agreements provide
for the following benefit modifications by adding the following to Sections 3, 17, and 18 of the
Defined Benefit Retirement Plan:
Section 3
(6) Benefit Group General — Option F. All members not included in Benefit Group - Sheriff's
Department whose employment agreements with the county indicate that they are Option F
employees.
Section 17
(f) Benefit Group General — Option F. The individual has attained age 55 and has 25 or more years
of credited service, or the individual has attained age 60 years and has 8 or more years of credited
service and member makes a 1% compensation "pickup" contribution in accordance with section 52
(d).
Section 18
(f) Benefit Group General — Option F. For members (previously Option B members) who make a
1% of compensation "pickup" contribution after December 18, 1999, or when the employee
completes 14 years of credited service and makes a 1% of compensation "pickup" contribution,
1.8% (.018) of the member's final average compensation multiplied by up to 14 years of credited
service and credited service years of 15 and beyond shall be multiplied by 1.98% (.0198) of the
member's final average compensation. For those members eligible to have sick leave and annual
leave included in their final average compensation, annual leave days in excess of seventy-two (72)
and sick leave days in excess of one hundred (100) will be multiplied by 1.8% (.018) when
computing the retirement allowance. Annual leave days up to seventy-two (72) and sick leave days
up to one hundred (100) will be multiplied by 1.98% (.0198) when computing the retirement
allowance.
BE IT FURTHER RESOLVED that Section 52 shall be amended by adding Subsection (e)
thereto, providing:
Section 52
(e) Each member in Benefit Group General - Option B shall be offered the opportunity to make an
irrevocable election to participate in the "pickup part" of the DB part of the Retirement System
effective January 1, 2000. Such irrevocable election for each nonrepresented member and
represented members whose collective bargaining agreements provide for these benefit
modifications shall require a member contribution of 1% of compensation after completing 14 years
of service. Such contributions shall only be effective for compensation paid after December 31,
1999, and will only affect benefits paid to members who have credited service after December 31,
1999.
BE IT FURTHER RESOLVED that Benefit Group General — Option F remain consistent
with Bargaining Group 10, Sheriff's Deputies, as to years of service for contribution and that if the
deputies lower the years of service from 14, then the Benefit Group General — Option F shall be
lowered to the same number.
BE IT FURTHER RESOLVED that Section 18 (e) Benefit Group General — Option E be
amended by adding, "previously Option A members" (for clarification purposes) as follows:
Section 18
(e) Benefit Group General — Option E. For members (previously Option A members) who make a
1% of compensation "pickup" contribution after December 18, 1999, or when the employee
completes 14 years of service and makes a 1% of compensation "pickup" contribution, 2.0% (.02)
of the member's final average compensation multiplied by up to 14 years of credited service and
years 15 and beyond shall be multiplied by 2.2% (.022) of the member's final average
compensation.
BE IT FURTHER RESOLVED that for employees, who select this option, contributions
shall be made retroactive to compensation paid after December 31, 1999; and that employees have
45 days after notice is given to make their selection.
Chairman, on behalf of the Personnel Committee, I move the adoption of the foregoing
resolution subject to the approval of the State of Michigan County Pension Plan Committee.
PERSONNEL COMMITTEE
71,,d
Personnel Committee Vote:
Motion carried on unanimous roll call vote with Galloway absent.
•
Resolution #00042 March 9, 2000
The Chairperson referred the resolution to the Finance Committee. There
were no objections.
FISCAL NOTE (M.R. #00042) March 23, 2000
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: PLAN B RETIREMENT IMPROVEMENTS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has
reviewed the above referenced resolution and finds that sufficient funds
exist in the fringe benefit fund to cover the cost of this change, no
additional appropriation is required from the General Fund.
FINANCE COMMITTEE
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
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I HEREBY HE FOREGOING RESOLUTIr'ql
cook P County Executive Date
Resolution #00042 March 23, 2000
Moved by Law supported by Jensen the resolution be adopted.
AYES: Garfield, Gregory, Jensen, Law, McCulloch, McPherson, Melton,
Millard, Moffitt, Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos,
Appel, Buckley, Causey-Mitchell, Coleman, Dingeldey, Douglas, Galloway. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was
adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on March 23, 2000 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 23A4 day/6f March, 2000.
G. William Caddell, County Clerk