REPORT TO THE CITY COUNCIL
March 16, 2017
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: KEN PHILLIPS, Labor Relations Manager
Personnel Services Department
SUBJECT
Title
***BILL NO. B-13 - (Intro. 3/9/2017) (For adoption) - Amending subsection (f) of Section 3-402 and adding Section 3-427 to Article 4 of Chapter 3 of the Fresno Municipal Code (FMC), of Tier 2 of the Fire and Police Retirement System to allow the election to redeposit retirement contributions upon reemployment with the City
Body
RECOMMENDATION
It is recommended that Council introduce the attached ordinance amending subsection (f) of Section 3-402 and adding Section 3-427 to Article 4 of Chapter 3 of the Fresno Municipal Code (FMC) of Tier 2 of the Fire and Police Retirement System to allow the election to redeposit retirement contributions upon reemployment with the City.
EXECUTIVE SUMMARY
The ordinance will allow safety employees in Tier 2, who leave the City and then return, to make an election on whether or not to redeposit retirement contributions which were withdrawn. Currently, the only option is to return those contributions. The process is similar to that provided for the City of Fresno Employees Retirement System in Section 3-534(b) of the FMC.
BACKGROUND
Currently, provisions in Article 4 of the FMC - Second Tier of the Fire and Police Retirement System refer to FMC Section 3-327 in regard to Refund of Contributions. Section 3-327 allows safety employees in Tier 1 to make an election to either refund contributions, or go to Tier 2. The effect of this is that employees in Tier 2 who leave the City, withdraw contributions, and return upon reemployment, must redeposit contributions that were withdrawn. This creates a potential impediment to the return of former employees.
In contrast, Section 3-534(b) of the FMC allows employees in the City of Fresno Employees Retirement System who leave the City, withdraw contributions, and return upon...
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