RESOLUTION NO. 8600 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, AMENDING ARTICLE 8.2 (MERIT PAY) OF THE HAWTHORNE MUNICIPAL EMPLOYEE’S ASSOCIATION MEMORANDUM OF UNDERSTANDING. 

Staff recommends that the City Council adopt this Resolution No. 8600.

The California Public Employees’ Retirement System (“CalPERS”) conducted a final compensation review of a recent retiree, formerly part of the Hawthorne Police Civilian Association. In this audit process, CalPERS found to be deficient the Merit Pay provision (Article 8.2 Merit Pay) in the Memorandum of Understanding between the City of Hawthorne and the Hawthorne Police Civilian Association. The Merit Pay provision is identical to the Merit Pay provision (Article 8.2 Merit Pay) in the Memorandum of Understanding between the City of Hawthorne and the Hawthorn Municipal Employee’s Association. CalPERS identified that the Merit Pay provision did not adequately set forth the specific conditions of payment (a defined calculation method, terms for disbursement, etc.). (See Gov. Code, § 20636, Cal. Code Regs., tit. 2, § 571.) In informal discussions, CalPERS indicated that a side letter, retroactive at least three years from the retirement date, could correct the deficiency for this retiree and potentially other similarly situated retirees. The proposed resolution would clarify, but not alter, how the Merit Pay provision operates, helping to ensure the City of Hawthorne is compliant in its reporting of final compensation to CalPERS.

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