March 27, 2023 Board Meeting Recap Re: Alameda Flex Credit Resolution

At the March 27, 2023, Board of Retirement meeting, the Board reviewed the pending proposed Resolution Regarding Correction of Pensionability of Benefits under County of Ventura’s Flexible Benefits Program (“Flex Credit Resolution”) in advance of its formal consideration on April 17, 2023. (Links to the materials reviewed by the Board are available below.) The Resolution is to bring VCERA into compliance with the Alameda Decision (“Alameda”), which was issued by the California Supreme Court on July 30, 2020, regarding the pensionability of in-kind benefits that cannot be received in cash. (The Board of Retirement previously adopted a Resolution on October 12, 2020, to exclude the other areas addressed by Alameda, such as stand-by, callback, and other payments for service outside normal working hours.)

If adopted, the Flex Credit Resolution will exclude the non-cashable portion of the County’s Flexible Benefit Allowance from compensation earnable for Legacy members*. The Resolution addresses the pensionability of the flexible benefit credit for both the historical structure and the new structure recently adopted by the County of Ventura.

The PDFs below were developed to assist the Board and VCERA members to better understand the potential impact of this exclusion, and how members can estimate the calculation difference for themselves.

VCERA staff is working to expand communication efforts to both active and retired members in the coming weeks to promote better understanding of the Alameda Decision and its impact.

* General members in Tier 1 and Tier 2 and Safety members in Tier 1 who joined VCERA prior to January 1, 2013 or who were eligible for a Legacy plan due to reciprocity.

The March 27, 2023, board meeting materials:

Staff Letter from Retirement Administrator
Proposed Resolution for Alameda Exclusions
Estimated Impact Presentation & Examples
Estimated Impact Charts