ADMINISTRATIVE COMMITTEE
3.	Consider APPROVAL OF PAY DIFFERENTIAL FOR EMPLOYEES CAUSED by increase in tax for pers contributions
Meeting Date:		December 8, 2014	Budgeted:	No
From:		David J. Stoldt,	Program/	Personnel
		General Manager	Line Item No.:	Salaries & Benefits
Prepared By:		Suresh Prasad	Cost Estimate:	$24,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on December 8, 2014 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: In September 2013, the District negotiated a 3-year Memorandum of Understanding with the General Staff Unit, Management Unit, and the Confidential Unit. As part of the negotiation, staff salaries for the 3 bargaining units were increased by 6%, but the units were also asked to contribute 6% towards PERS contribution. The intent of this action was that employee take-home pay would not be affected. This has not been the case since the employee contribution towards the employer portion of the PERS contribution cannot be pre-tax, impacting the employee take-home pay. The impact in net pay to an employee varies based on their individual tax bracket.

The total impact to the employees has been around $24,000 over two years. Staff is seeking approval to reimburse employees based on their individual impact in net pay in two annual payments. The difference in net pay impact for 2014 will be paid in December 2014, and the second payment will be made in 2015. The total impact of this reimbursement will not exceed $24,000.

RECOMMENDATION: Staff recommends approving the pay differential for employees caused by increase in tax for PERS Contribution of not to exceed $24,000. The Administrative Committee reviewed this item on December 8, 2014 and recommended _________.

EXHIBIT

None

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