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Home My WebLink AboutDocumentation_Regular_Tab 19_5/13/2021Agenda Item #19. Regular Council STAFF MEMO ` Meeting: Regular Council - May 13 2021 Staff Contact: Merlene Reid, Director, HR &Risk Department: HR Management Approve Settlement Agreement Regarding a Grievance between the Palm Beach County Police Benevolent Association and the Village of Tequesta in Respect of the Retirement Article of the Collective Bargaining Agreement Attached is a settlement agreement between the Village and the Police union (PBC Police Benevolent Association) regarding a grievance filed on May 19, 2020, the details of which are set out in Appendix A. In summary, the grievance stemmed from a disagreement regarding the allocation of funds that were transferred in 2019 from a previous Village sponsored 401a Defined Contribution plan to the Village's reopened Public Safety Defined Benefit plan. Officers joining the 401 a plan during its June 2011 to May 2018 term, contributed between 5-10% to that plan, which had a minimum 5% requirement. Upon moving the funds to the DB plan in a lump -sum format, 3 officers requested refund of monies paid in excess of the 6% contribution rate stipulated in the reopened DB plan. To avoid costly arbitration, both parties agreed that if the 3 officers were to receive said refund, then the 7 officers who contributed less than 6% should also repay any difference, and the Village would make up any balance payable to the officers who contributed in excess of 6%. The total sum payable to the 3 identified officers is $21,574.10. The 7 officers' repayment contribution is calculated at $14,135.09, and the Village will contribute the balance of $7,439.01. Sufficient funds are currently available from the pension contribution line item of the Police department's budget. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443. Approval of the settlement agreement which was executed by the Village and the PBA on April 21, 2021. Retirement Grievance Settlement Fully Executed 4-21-2021.ada.docx Page 440 of 496 Agenda Item #19. SETTLEMENT OF GRIEVANCE 1. On May 19, 202% Palm Beach County Police Benevolent Association ("PBA") filed a contract grievance against Village of Tequesta ("requesta" or Village") on behalf of Tequesta police officers Matthew Munk, Daniel Waychowsky, Jonathan Franklin, and Aaron Johnson. 2. The grievance charged that the Village had violated Article 29 Retirement, of the collective bargaining agreement between the parties. The grievance alleged that the Village had withheld funds "in excess of their required contributions to the defined benefit plan", and it sought "return of all funds (with interest) in excess of their required contribution(s) to the defined benefit plan". 3. The dispute had its genesis in a Memorandum of Understanding {"MOU"} between the Village and the PBA dated February 14, 2019. The MOU allowed full-time police officers hired between June 9, 2011 to May 31, 2018 to leave their existing 401(a) plan and join the reopened Tequesta Public Safety Retirement Plan (formally known as the "Village of Tequesta Public Safety officers Pension Trust Fund" and also referred to as the "Retirement Plan"). The MOU further stated that the 401(a) Plan balances for the affected officers would be transferred to the Public Safety Retirement Plan. 4. The contribution rate for police officers in the Public Safety Retirement Plan is 6% of pensionable compensation. Based on the amounts in their 401(a) accounts that were transferred, some of the officers who joined the reopened defined benefit plan effectively contributed less than 6% of pensionable compensation and others contributed more than 6% of pensionable compensation. However, the MOU and supporting documents made no reference to individual account contributions and only documented that the total balance for all affected officers would be transferred. 5. Tequesta denied the grievance and the PBA requested arbitration of the dispute. 6. The parties have agreed to settle the grievance in order to avoid the cost and uncertainty of further litigation. 7. The following officers effectively contributed an amount of 401(a) money that is less than 6% of pensionable compensation. The amounts of the difference are set forth below. Timothy Baldwin $ 378.57 Kurt Blanc $ 7,316.01 Thomas Jarrell $1,023.67 Michael Loney $ 705.74 Matthew Muniz $ 609.28 Christopher Scaduto $ 646.50 1 Page 441 of 496 Agenda Item #19. Emir Yildiz $3,455.32 $14,135.09 8. The following officers effectively contributed an amount of 4O1(a) money that is more than 6% of pensionable compensation. The amounts of the difference are set forth below. Jonathan Franklin $ 20615.92 Aaron Johnson $12,688.05 Daniel Waychowsky $ 61,270.13 $21,574.10 9. The parties have agreed to settle the grievance in the following manner. The Retirement Plan share account balances of all the above -named individuals will be recalculated as follows, effective within 60 days following the adoption of an ordinance implementing the terms of this Settlement: (a) The individual sums specified in paragraph 7 (which total $14,135.09) will be subtracted from the current Retirement Plan share account balance of each of the respective police officers. (b) The Village will contribute the sum of $7,439.01 to the $14,135.09 subtracted from the current share account balances of each of the police officers listed in paragraph 7, making a total of $21,574.10. (c) The sum of $21,574.10 referenced in paragraph 9(b) above will then be allocated to the Retirement Plan share accounts of the officers listed in paragraph 8, in the amounts specified in paragraph 8. 10. These share account balances, as recalculated above, will be credited with earnings and losses based on the earnings of the Fund as a whole commencing with the first allocation of earnings and losses following the effective date of an ordinance implementing the terms of this Settlement. The share account balances shall be payable to the named police officer members upon the member's eligibility for and receipt of a pension from the Retirement Plan. Any addition to the share accounts as a result of this Settlement will be considered member contributions. 11. This matter will be deemed settled when the actions specified in paragraph 9 are fully accomplished and the share accounts adjusted accordingly. At that time, the parties will N Page 442 of 496 Agenda Item #19. notify the arbitrator that the matter has been settled. Each party to this cause will bear its own fees and Casts. 12. At the request of the PBA, with the concurrence of the police officers whose sign2tures are set forth below, and with the agreement of the Village, the share account of Officer Tana Donadio will not be affected by this Settlement. 13. The signatures of the affected police officers as set forth below demonstrate that each of the affected officers has read and understands the terms of this Settlement and agrees to those terms. By signing this Settlement, each of the affected police officers hereby knowingly and voluntarily waives, disclaims, and relinquishes any claim or right to any further recalculation of their Retirement Plan share account balance, and agrees to hold harmless the Village of Tecluesta and the Village of Tequesta Public Safety Officers Pension Trust Fund, as well as their officers, trustees, employees, contractors, and representatives, from any claim, liability., or action related to the re4culation of their share account balance as provided herein. AGREED to by the Parties this day of April, 2021. Leonard A. Carson Special Labor Counsel Village of Tequesta ger John as ('ian) Pies /dent Palm Beach County PBA Timothy Baldwin ... .. ...... ..... ...... i/ Kurt Blanc Thomas Jarrell Page 443 of 496 Agenda Item #19. MichaelLoney Matthew Muniz Christopher Scaduto } Emir Yildiz 7na,Ilan ran Ilin Aaron Johnson Carrie a cho sk Page 444 of 496