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Home My WebLink AboutM2015-124 - 10/27/2015 S d Corpus Christi 1201 Leopard Street ��5 Corpus Christi,TX 78401 01 cctexas.corn ,, October 27, 2015 Motion: M2015-124 File Number: 15-1232 Enactment Number: M2015-124 Motion authorizing the City Manager to execute all documents necessary to approve and clarify the attached Proposal (described in the attached 6-29-15 letter and the attached 10-8-15 letter), which provides for the relief described in the consent decree for United States et al v. City of Corpus Christi (2:12-cv-00217) with respect to the priority Hires who have qualified for relief pursuant to said decree. At a meeting of the City Council on 10/27/2015, this Motion was passed. (Nea-&-- L..c.‘, Nelda Martinez, Mayor Attest: -p._..A. lae.f..,t4. kL,...0....47‘ Rebecca Huerta, City Secretary Corpus Christi Printed on 11/2/15 INDEXED U.S.Department of Justice Civil Rights Division _ars DLK:TSB:SLS:NES:lj Employment Lillgalion Section-PHB 950 Pennsylvania Ave,NW DJ 170-74-354 Washington DC 20530 www.usdolgovicri/emp June 29,2015 Via Electronic Mail Mark DeKoch,Esquire City Attorney's Office 1201 Leopard Street Corpus Christi,Texas 78401 Re: United States et al. v. City of Corpus Christi, Case No. 2:12-cv-00217(NOR)(S.D. Tex.) Dear Mr. DeKoch: Thank you for the City's recently provided proposals, and other information, regarding make-whole retirement relief for priority and delayed hires (collectively, "Hires")per the May 16,2013 Consent Decree ("Decree"). See generally ECF No. 57. To better position us to respond substantively to the City's pending retirement relief proposal("Proposal"),we ask that you confirm—or, if applicable, clarify or correct—the following points. 1. Since being hired by the Corpus Christi Police Department("CCPD"),Hires have been eligible to participate in the Texas Municipal Retirement System ("TMRS")at least to the same extent as all other entry-level CCPD officers with the same actual hire dates as the Hires. 2. At all times since 2006,to participate in TMRS an entry-level CCPD officer with an actual hire date of April 14,2006 or later has been required to financially contribute to a TMRS account established for him/her. The City has always"matched,"or agreed to"match," such contributions at a 2-to-1 rate(i.e.,two times the sum of an officer's contributions and the account's total interest credits). 3. Under Texas law,TMRS is not required to allow for retroactive contributions for periods exceeding four years from when an application to correct errors is made. No such application has been made as to the Hires' retirement relief under the Decree. TMRS has indicated that it may allow retroactive contributions for periods exceeding four years from an application to correct errors. 4. In any event,TMRS would limit retroactive contributions based on both how much backpay Hires received per the Decree and the maximum employee-side contribution rates and/or amounts in effect at the applicable times. With those limits imposed, make-whole retirement relief would likely be unavailable using TMRS alone. 5. Except as indicated below in¶7(regarding retroactive hire dates),the Proposal would not affect Hires' existing TMRS accounts. Hires have always been, and will remain,eligible to participate in TMRS at least to the same extent as all other entry- level CCPD officers with the same actual hire dates. 6. Under the Proposal,the retroactive piece of monetary make-whole retirement relief would be effected using 26 U.S.C. § 457(b) deferred compensation plans ("457 Plans"). a. For twelve months from a yet-to-be-determined future date, each Hire could contribute,to her City-sponsored 457 Plan, up to the maximum amount that she would have been allowed to contribute to her TMRS account between her retroactive hire date and her actual hire date.' b. By a yet-to-be-determined date after those twelve months have elapsed,the City will, at the 2-to-1 rate applicable to TMRS accounts and described above in¶2, "match"Hires' 457 Plan contributions. Also by that date,the City will deposit the entire City-side contribution amount into an interest-bearing account. c. By a yet-to-be-determined date after which each Hire is eligible to retire from City employment,the City will transfer its 457 Plan-related contributions for the Hire,and interest on those contributions, into the Hire's 457 Plan account. 7. To the maximum extent permitted by applicable law,without disqualifying or adversely affecting Hires' TMRS plans or 457 Plans,Hires' service as entry-level CCPD officers will be deemed to have commenced on their retroactive hire dates(see Decree,¶ 10)for purposes of both retirement eligibility and vesting related to their TMRS and 457 accounts. 'Here,that is true despite the applicable statutory contribution maximum. Based on information the City has provided to date,the statutory maximum would be $36,000(i.e., $18,000 per calendar year that increases to$36,000 if the applicable 12-month period straddles two calendar years). A Hire with the earliest retroactive hire date would be entitled to contribute at most about $24,000. 2 Please do not hesitate to call or write with questions or concerns. That said,we ask that the City make any confirmation,clarification, or correction of the above points in writing, • Sincerely, Delora L.Kennebrew hief Emplo try itigation Sec • Bypf I tie 4/ ,41 Trevor S. :lake II Special Litigation Counsel Sonya L. Sacks Senior Trial Attorney Employment Litigation Section 3 �; - U.S. Department of Justice • Civil Rights Division DLK:TSB:SLS:tj Employment Litigation Section-PHB 950 Pennsylvania Ave,NW DJ 170-74-354 Washington DC 20530 www.usdoJ.gov/crt/emp October 8, 2015 Via Electronic Mail Mark DeKoch,Esquire City Attorney's Office 1201 Leopard Street Corpus Christi, Texas 78401 Re: United States et al. v. City of Corpus Christi, Case No. 2:12-cv-00217(NOR) (S.D. Tex.) Dear Mr. DeKoch: As requested,this letter sets forth the key terms of a proposal for the City to fulfill its • obligation, under the May 2013 Consent Decree entered in the above-referenced case, to provide make-whole retirement relief to priority hires and delayed hires (collectively, "Hires"). These terms are acceptable to the United States. 1. Enclosed is a letter, dated June 29, 2015, from the United States to the City("June 2015 Letter"). The City confirmed the information in all paragraphs(excluding footnote 1) of the June 29 Letter and clarified the information in footnote 1 of the — —June29.L.etter.she_UnitedStates'acceptance-of the_below-terms_isbased-on_the-_ - foregoing confirmation and clarification by the City and on the United States and the City's (collectively, "Parties") agreement to extend the periods referenced in paragraphs 6(a)and 6(b) of the June 29 Letter from twelve(12)months to twenty- four(24)months. 2. Within fourteen(14)days of receiving this letter,your office will ask the City Council.to vote on the proposal) 3. No later than thirty(30) days after the City Council approves the proposal,the City will, via a written notice that is acceptable to both Parties: a. inform the Hires about the proposal; b. ask Hires to indicate, in writing,that they either do or do not intend to participate in a retirement plan established per the proposal;and ' We understand from you that the City Council must approve these terms and thus ask that you seek the council's approval. That said, for purposes of the remainder of this letter, we assume the City Council has approved the proposal. c. request that Hires complete any forms,and provide any other information, necessary to Hires to participate in the retirement plan established per the proposal. 4. As to each Hire,no later than thirty(30)days after she indicates, per paragraph 3(a) above, that she intends to participate in a retirement plan that will be established for her per the proposal,the City will establish a 26 U.S.C. § 457(b) deferred compensation plan ("457 Plan") account for her. If a Hire does not participate in a 457 Plan, she will still maintain her retroactive hire date for all retirement-related purposes set forth in the Consent Decree. 5. As to each Hire,for twenty-four(24)months from the date that the City, in writing, informs her that her 457 Plan account has been established,the Hire may contribute to that account up to the maximum amount that she would have been allowed to contribute, to her Texas Municipal Retirement Security account, between her retroactive hire date and her actual hire date, had she been an officer of the Corpus Christi Police Department during that period. 6. As to each Hire,within thirty(30) days after the earlier of(i)when the 24-month period referenced in paragraph 5 above lapses or(ii) when she has contributed to her 457 Plan account the maximum amount permissible under paragraph 5 above, the City will deposit into an interest-bearing account an amount of money that is two times the total amount of money that the Hire has contributed to her 457 Plan account. 7. As to each Hire, within thirty(30) days after she is eligible to retire from City employment, the City will deposit,into the Hire's 457 Plan account, an amount of money that is equal to the City's contributions for her 457 Plan plus all accrued interest on those contributions. Please do not hesitate to contact the undersigned with any questions. Also,please advise when your office has requested the City Council's approval of the above-described proposal. Sincerely, Debora L. Kennebrew Chief Employment 'ti ation Section By: ~� Trevor S. Blake II Special Litigation Counsel Sonya L. Sacks Senior Trial Attorney Employment Litigation Section 2