SUBJECT: EXTENDING TIMEFRAME FOR
SALARY AND BENEFITS CONTINUATION FOR MILITARY RESERVISTS CALLED TO ACTIVE DUTY
In order provide for those City employees who are called to duty in the coming months, Council approval is requested as soon as possible.
1. That the City Council adopt a Resolution approving salary and benefits provided by Resolution No. 68890 for eligible City employee/military reservists called to active duty after November 27, 1999 because of the Kosovo Conflict and extending the end date for eligibility for salary and benefits to December 31, 2002.
2. That, as a part of the resolution, the City Council delegate authority to the City Manager or designee to sign agreements detailing the repayment requirements of the supplementary benefits with affected employees.
As a result of the Iraq-Kuwait Crisis, in 1990 the Council adopted a Resolution allowing for City employees who were reservists and were called to active duty between September 1, 1990 and February 28, 1991, to extend their salary and benefits for 13 pay periods beyond the existing 30 calendar day policy. During that crisis, approximately 240,000 reservists were called for duty. In 1990, approximately 80 City employees were called for duty.
Because of the Kosovo conflict, in June 1999 the Council adopted a Resolution mirroring the Resolution adopted in 1990, extending salary and benefits to reservists who were called for duty between May 31, 1999 and November 27, 1999. During that conflict, approximately 33,000 reservists were called for duty. In 1999, approximately 15 City employees were called for duty.
Because of ongoing unrest in that region, City employees who are reservists are occasionally called for duty because of the Kosovo conflict.
The State of California has a program in effect for state employees who are called to duty as a result of the Kosovo conflict.
The resolution
adopted in 1999 provides a wide variety of benefits in addition to salary. Key benefits, including health, dental, and
retirement, also benefit the dependents of the employee. The Administration proposes to extend the
1999 resolution’s cut-off date, to City employees who meet the following
guidelines:
1. Members of the reserves and/or National
Guard; and
2. Have one or more years of active City
service; and
3. Are called to active duty as a result of
the Kosovo Crisis before December 31, 2001; and
4. Return to City employment within 60 days
after the end of active duty status; and
5. Remain as active employees for at least
six months following their return to City employment.
As in the past
resolution, employees will be required to sign an agreement detailing their
rights and obligation pursuant to these supplemental benefits prior to initial
receipt of benefits beyond the mandatory 30 days. Those who elect not to return to City service would be required
to repay the City for the cost for the supplemental salary and benefits plus
interest (at the rate earned on the City’s pooled investments) for the periods
that exceed the mandatory thirty (30) days.
This return to work requirement is consistent with the San Jose
Municipal codes sections regarding retirement contributions.
Supplemental salary
The City will
continue to provide a biweekly check in an amount equal to base salary less
military pay. The military pay will be
estimated on the basis of the employee’s military rank, years of service, and
the information on the military orders, if available. In determining the supplement, the City will also take into account
all extra pay including dependent allowances, housing, hazardous duty, flight
pay, etc. Reservists will be required
to send copies of their military pay stubs to our office for reconciliation
purposes. The payments will be
reconciled quarterly by Compensation-Accounting. If Compensation-Accounting has not received the copies within
three weeks after the end of the quarter, future checks will be held until the
information is provided.
Health Insurance
The City’s
health plans will pay benefits as the primary provider so long as the City and
employees continue to pay the premiums in the same ratio as for other active
employees. This will allow our
employees and their dependents to continue to use their current doctors and
hospitals.
In addition, the
United States government provides a health plan for active military and their
dependents. Benefits include
prescription and vision coverage. If
the City continues to pay the employees’ health care premiums, the City’s plans
will pay benefits first and the federal plan will pay second, except that the
federal plan will be primary for injuries and illnesses that are suffered in
the line of duty.
Dental Coverage
The City will
continue to provide dental coverage for the employee and dependents. The United States government provides
coverage for its members and dependents dental care. If the City continues to
pay the employees’ dental care premiums, our plans will pay benefits first and
the federal plan will pay second, except that federal plan will be primary for
dental injuries suffered in the line of duty.
Life Insurance
The City
Insurance plans will not cover employees on active duty.
Retirement
Sections
3.28.630 and 3.36.620 of the San Jose Municipal Code provide that, following
return to active employment for active military duty, the City shall pay the
portions of the contribution rate owed by both the City and the employee. Under the proposed benefit structure, the
City and employee will continue to pay retirement contributions on the basis of
the supplemental salary. Following
return from active duty within the guidelines of Sections 3.28.630 and
3.36.620, the City will pay the retirement system the amount of City and
employee contributions that are due.
Labor Relations
The extensions
of these forms of compensation are subject to the meet and confer process under
the Meyers-Milias-Brown Act. City Labor
Organizations have been notified of this program in accordance with the
requirements of the Meyers-Milias-Brown Act.
Not applicable.
This memorandum was coordinated
with the City Attorney’s Office and the City Manager’s Budget Office.
Records
indicate only one current employee took unpaid military leave between November
27, 1999 and May 31, 2001. The City is
aware of approximately four (4) additional employees who expect to be called to
service in the coming months because of the Kosovo conflict. Historically, military salary has been
approximately 55% of City pay. The 45%
of base pay and benefits for 5 employees for thirteen (13) pay periods would be
approximately $72,900. The 2000-2001
adopted budget already provides full salary and benefits for these
employees. The only additional costs
would come in the form of overtime paid to cover open critical shifts of the
four expected employees called to service, unless an unforeseen number of
reservists are called to duty.
Alex Gurza
Director of Employee Relations