March 27, 2023 Upcoming Board Meeting: Alameda Flex Credit Resolution

At the upcoming March 27, 2023, VCERA Board of Retirement meeting, at 10:00 a.m. Time Certain, the Board will be reviewing a proposed Resolution to implement the exclusion of in-kind benefits per the California Supreme Court’s July 30, 2020, ruling in ALAMEDA COUNTY DEPUTY SHERIFF’S ASSN. v.  ALAMEDA COUNTY EMPLOYEES’ RETIREMENT ASSN.  The Resolution defines what portion of allowances received under the County’s flexible benefits program may be included in compensation earnable for “Legacy” members (hired before January 1, 2013) if the Resolution is later adopted at the April 17, 2023, meeting.

Historically, for each bargaining unit (i.e. union), the County has provided a Flexible Credit Allowance to all employees in each unit, and deducted an Opt-Out Fee for those employees who chose to opt out of the County-provided medical coverage. More recently (starting in December 2022), some of the units adopted a new Opt-Out Allowance structure. Under this new structure, employees who opt out of health benefits do not receive a Flexible Credit Allowance nor are they charged an Opt-Out Fee; instead they receive an Opt-Out Allowance. The Resolution addresses what portion is pensionable under each of these structures.

These changes would be effective for any Legacy member who retires on or after July 30, 2020.

Stakeholders and members are encouraged to listen in and/or review the materials linked here for a preview of the history and anticipated discussion. VCERA’s fiduciary counsel will be present to review the Resolution in detail with the Board of retirement.

The advance agenda item materials:

Review and Discussion of Proposed Resolution to Implement Changes to Compensation Earnable Resolution in Compliance with the California Supreme Court Decision, Alameda County Sheriff’s Assoc. Et Al., v. Alameda County Employees’ Retirement Assn., Et Al (2020) 9 Cal.5th 1032 (“Alameda”) Following Governor Newsom Veto of Assembly Bill 826, in Advance of Anticipated Action on April 17, 2023.

Staff Letter from Retirement Administrator
Letter from Governor Newsom, Veto of AB 826
Memorandum from General Counsel, dated Jan. 31, 2023
Proposed Resolution for Alameda Exclusions