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ADOPT A RESOLUTION TO APPROVE THE MODIFICATION OF THE UNREPRESENTED MANAGEMENT / CONFIDENTIAL AND LAW EMPLOYEES’ COMPENSATION PLAN TO ADD A RETIREE MEDICAL TRUST FOR UNREPRESENTED EMPLOYEES PROMOTED FROM THE STOCKTON FIRE MANAGEMENT UNIT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Amend the Unrepresented Management/Confidential and Law Employees’ Compensation Plan effective July 1, 2023, to add a Retiree Medical Trust for Unrepresented employees promoted from the Stockton Fire Management Unit; and
2. Authorize the City Manager to execute the Joinder Agreement with IAFF Local 456 for the Retiree Medical Trust.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution, including implementation of the updated Compensation plan.
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Summary
The Joinder Agreement for a Retiree Medical Trust was executed for the Stockton Fire and Stockton Fire Management Units beginning in the pay period following July 1, 2023. On January 4, 2024, International Association of Fire Fighters (IAFF) requested that the Medical Expense Reimbursement Plan (MERP) be extended to employees who promoted out of Fire Management and into an Unrepresented position following the July 1, 2023 effective date. This will allow employees to continue participating in payroll deductions into a Retiree Medical Trust following a promotion from the Fire Management bargaining unit.
DISCUSSION
Background
In 2022, the Human Resources Department and the City of Stockton’s Chief Negotiator from Sloan, Sakai, Yeung & Wong LLP met with members of the Stockton Firefighters’ Local 456 and the Stockton Fire Management Units to negotiate a successor Memoranda of Understanding. The parties agreed during bargaining that the City would facilitate payroll deductions into a Retiree Medical Trust designated by IAFF Local 456 for the benefit of its members. On September 27, 2022, the City Council unanimously approved a successor Memoranda of Understanding for both Fire units to include a Retiree Medical Trust.
The adopted Memoranda of Understanding memorializes that participation in the Trust shall be the complete and sole responsibility of the Union. The City shall not be involved in the Trust’s design, its administration, or in the benefits paid, nor shall the City have any responsibility for any actions of the Trust or its trustees, or of the Union with respect to the Trust. The City has no fiduciary duty with respect to the Trust. Furthermore, the Union agreed to indemnify and hold harmless the City and each of its agents, officers, and employees against all costs, expenses, liability, and damages resulting from any misrepresentation, negligent action or inaction, or breach of the Trust, or any rules, policies, or procedures established by the Trust’s Board of Trustees.
Present Situation
Attached as Attachment A is the proposed change to the Unrepresented Management/Confidential and Law Employees’ Compensation Plan shown in redline. The changes are consistent with agreements made with the Stockton Firefighters’ Local 456 and the Stockton Fire Management Units previously approved by the City Council. A summary of the changes is outlined in the preceding paragraph. Attachment B of this report is the IAFF Local 456 Joinder Agreement for their Retiree Medical Trust with the City. The agreement allows the City to make payroll deductions on behalf of IAFF Local 456 and provide a monthly or per-pay period report on employee contributions.
For City Council’s consideration is the recommendation to amend the Unrepresented Management/Confidential and Law Employees’ Compensation Plan and authorize the City Manager to execute the Joinder Agreement with IAFF Local 456 for the Retiree Medical Trust.
Attachment A - Unrepresented Management/Confidential and Law Employees’ Compensation Plan - Redline
Attachment B - Joinder Agreement for IAFF Locals