Title
Approve, adopt, and authorize the Human Resources Department to execute the side letter agreement with Monterey County Deputy Sheriffs’ Association (Units A & B) to amend the Longevity Pay provision in the Memorandum of Understanding (MOU) and remove the requirement of the Longevity Pay Certification Form retroactively pursuant to CalPERS’ audit requirements.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve, adopt, and authorize the Human Resources Department to execute the side letter agreement with Monterey County Deputy Sheriffs’ Association (Units A & B) to amend the Longevity Pay provision in the Memorandum of Understanding (MOU) and remove the requirement of the Longevity Pay Certification Form retroactively pursuant to CalPERS’ audit requirements.
SUMMARY:
In July 2025, CalPERS audited the County's longevity pay practices for the period of July 1, 2021, through December 31, 2024, and found the County was not in compliance with the Public Employees' Retirement Law (PERL). The audit determined that requiring employees to submit a Longevity Pay Certification Form made longevity pay non-pensionable. To correct this, the County needs to remove the certification form requirement from the applicable Memoranda of Understanding, bringing the County into compliance with CalPERS requirements and preserving the pensionable status of longevity pay for those units. The Monterey County Deputy Sheriffs’ Association (Units A & B) is the last remaining MOU with the form requirement, which will be retroactively amended via this side letter of agreement.
DISCUSSION:
In July 2025, CalPERS conducted a statewide audit of longevity pay practices covering July 1, 2021 through December 31, 2024, and found all 20 agencies reviewed, including the County of Monterey, out of compliance with the Public Employees’ Retirement Law (PERL). CalPERS determined that the County's requirement for employees to submit a Longevity Pay Certification Form made the longevity pay provision non-pensionable during the audit period.
To resolve the issue, the County must retroactively amend applicable MOUs through side letter agreements to remove the certification form requirement, consistent with the CalPERS Audit Compliance & Resolution Unit stipulated requirements. The MOU updates executed via the side letter agreements brings the County into compliance with PERL and minimizes payroll impacts.
Longevity Pay provisions were first adopted at various points in time across bargaining unit MOUs. On August 11, 2026, the Board approved, adopted, and authorized the Human Resources Department to execute side letter agreements with multiple bargaining units; the County had not yet completed meet and confer with Monterey County Deputy Sheriffs’ Association (Units A & B) at that time (Legistar File 26-710). This side letter agreement with MCDSA amends the Longevity Pay provision of their MOU retroactively to July 1, 2024, when the Longevity Pay provision was first incorporated into the MCDSA MOU, to reach compliance with the PERL and preserve the PERSability of the Longevity Pay.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
The Human Resources Department conferred with CNA, Natividad Medical Center, and Health Department regarding this matter.
FINANCING:
The corresponding departments shall absorb the annualized cost of this agreement on FY 2024-25 through FY 2025-26. If needed, the department will request additional funding during the budget process in FY 2026-27.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
Approval of these side letters promotes the boards Dynamic and Organization and Employer of Choice strategic plan goal by enforcing our commitment to our workforce’s future.
Mark a check to the related Board of Supervisors Strategic Plan Goals
__ Well-Being and Quality of Life
__ Sustainable Infrastructure for the Present and Future
__ Safe and Resilient Communities
__ Diverse and Thriving Economy
__ Dynamic Organization and Employer of Choice
If does not fall under any of the above Board of Supervisors Strategic Plan Goals (Other):
ü Administrative: The approval of these side letters by the Board of Supervisors will
support the agreement of Monterey County and the Unions.
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Amy Rodriguez, Senior Human Resources Analyst, x5373
Approved by: Andreas Pyper, Director of Human Resources, x5034
Attachments:
Attachment A - Monterey County Deputy Sheriffs’ Association (Units A & B) Side Letter