Title
Approve, adopt, and authorize the Human Resources Department to execute the side letter agreements with impacted labor groups to amend the Longevity Pay provision in the respective Memoranda 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 agreements with impacted labor groups to amend the Longevity Pay provision in the respective Memoranda 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 (MOUs), bringing the County into compliance with CalPERS requirements and preserving the pensionable status of longevity pay for those units.
Side letter agreements have been reached for all affected bargaining units except the Monterey County Deputy Sheriffs' Association (Units A & B), which remains in negotiations. Approval of the existing side letter agreements will allow the County to satisfy the CalPERS audit requirements while discussions with the remaining unit continue.
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)...
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