Update on Resolutions Passed by Board on April 17, 2023
On April 17, 2023, the VCERA Board of Retirement adopted two Resolutions regarding the Alameda Decision, each affecting different groups of VCERA members.
Some members are not affected at all. For example, those who retired from VCERA prior to January 1, 2013, will not see any change in their retirement benefits as a result of the Alameda Decision.
Generally speaking, members who joined VCERA prior to January 1, 2013 are “Legacy” members, and those who joined on or after January 1, 2013 are “PEPRA” members. Nearly all of the changes required by Alameda only impact Legacy members. (A limited group of PEPRA members may be impacted if they received payment for services rendered outside of normal working hours.)
| PEPRA Exclusions | Alameda Exclusions |
|---|---|
| Payments for 1) services rendered outside of normal working hours, such as standby pay, call-back pay and shift differentials on overtime; and 2) leave redemptions (vacation buydowns) in excess of what is both earned and payable in each 12-month period. | In-kind benefits not paid in cash that the employee is not able to elect to receive directly in cash, such as 1) leave donations and 2) flex credits in excess of amounts that the employee can receive in unrestricted cash. |
Resolution 1 – The “Alameda Exclusions Resolution”
The first Resolution implemented Alameda Exclusions, which are in-kind, non-cashable benefits, such as: 1) leave donations and 2) flex credits in excess of amounts that the employee can receive in unrestricted cash. The “Alameda Exclusions Resolution” affects members who retired, or will retire, on or after July 30, 2020 (i.e., the date of the Alameda Decision) and earned any of the Alameda Exclusion pay items back to the beginning of their VCERA membership. All affected members (retired, active and deferred) with those pay items have overpaid retirement contributions to VCERA through payroll on those items.
Active and deferred members will receive refunds of any overpaid contributions, with an additional 7.9% annual rate interest, compounded, with the option to receive the refunds as either direct payments or rollovers, where applicable.
Retired members who retired on or after July 30, 2020, have been overpaid monthly retirement benefits if non-pensionable earnings were included in their Final Average Compensation (FAC). The Resolution states that, if the total of the monthly benefits that VCERA overpaid such retirees* exceeds the total of the retirement contributions* those retirees paid to VCERA before retirement, then VCERA will not recoup the net overpaid retirement benefits from retirees. Conversely, if the total of the overpaid retirement contributions* exceeds the total amount of overpaid retirement benefits,* the net difference will be refunded to the retiree.
(*with 7.9% annual compound interest applied)
Resolution 2 – The “PEPRA Exclusions Resolution”
The second Resolution is a supplement and modification to a Resolution that was adopted by the Board on October 12, 2020. The original Resolution applied to both Alameda and PEPRA Exclusions. At the time of adoption, the Board deferred action on paragraphs 3, 6, and 9 of that Resolution in regard to the in-kind, non-cashable portion of flex credits. The flex credits are now addressed in the new Alameda Exclusions Resolution adopted on April 17, 2023.
The supplemental “PEPRA Exclusions Resolution” affects members who retired on or after January 1, 2013, (i.e., the effective date of PEPRA) and who also earned and contributed on any pay items that are PEPRA Exclusions back to January 1, 2013. PEPRA Exclusions include:
- Services rendered outside of normal working hours, such as standby pay, call-back pay and shift differentials on overtime; and
- Leave redemptions (vacation buydowns) in excess of what is both earned and payable in each 12-month period.
Active and deferred members will receive refunds of any overpaid contributions, with an additional 7.9% annual rate interest, compounded, with the option to receive those refunds as either direct payments or rollovers where applicable.
Retired members who retired on or after January 1, 2013, have been overpaid monthly retirement benefits if non-pensionable earnings were included in their Final Average Compensation (FAC). The supplemental Resolution states that, if the total of the monthly benefits that VCERA overpaid such retirees* exceeds the total of the retirement contributions* those retirees paid to VCERA on such non-pensionable earnings from January 1, 2013, forward, VCERA will not recoup net overpaid retirement benefits from retirees. Conversely, if the total of the overpaid retirement contributions* exceeds the total amount of overpaid monthly retirement benefits,* the net difference will be refunded to the retiree.
(*with 7.9% annual compound interest applied)
Alameda Implementation Plan
To carry out the Board’s direction on these matters, VCERA will develop a comprehensive Alameda Implementation Plan that will be shared with the Board, stakeholders, and members in the near future.
Affected members will be contacted with more specific individual information as soon as administratively possible after those calculations are performed. They will also be notified of their calculated amounts, and potential options for ways to receive any funds due to them, prior to VCERA making any future benefit adjustments or issuing any refunds. Affected members will also have an opportunity to administratively appeal any claimed errors with respect to such calculations.
Resolution Regarding Correction of Pensionability of Benefits Under County of Ventura’s Flexible Benefits Program – 4/17/2023
Resolution Regarding Alameda Corrections of PEPRA Exclusions as to Retired Members – 4/17/2023
Resolution Regarding Alameda Implementation to Compensation Earnable and Pensionable Compensation – 10/12/2020