HomeMy WebLinkAboutA5584 -1OFFICER REIMBURSEMENT AGR WITH RON ODEN REGARDING PERS ENROLLMENT OFFICER REIMBURSEMENT AGREEMENT
This Agreement is made this 23d day of October between the City of Palm
Springs, California ("City"), a California charter city, and Ron Oden ("Oden"), an elected
officer of the City of Palm Springs.
Recitals
A. As an elected officer of the City, Oden was and is entitled to certain
compensation and benefits as the City Council approved from time to time. This
package of compensation and benefits includes eligibility to participate in the Public
Employees' Retirement System ("PERS") on the same terms and conditions as all other
members of the City Council. Such terms and conditions includes City payment of what
is commonly referred to as the "employee's" contribution towards the PERS benefit as
well as the employer's contribution (including the employer paid member contribution)
towards the PERS benefit.
B. The City did not enroll Oden into PERS and therefore the City did not pay the
employee contributions to PERS on behalf of Oden nor did the City pay the employer's
contribution to PERS on behalf of Oden. The City, however, did pay social security
payments on behalf of Oden.
C. Had the City enrolled Oden in PERS as would have otherwise been expected,
the City would have paid $11,077.55 in total employee contributions on behalf of Oden
and $19,095.59 in total employer contributions on behalf of Oden. The City paid a total
amount of$7,763.41 for Oden's social security contributions-
D. It is the desire of the parties that Oden be reimbursed in the amount of
$22,409.73, which equals the value of the contributions that should have been made on
Oden's behalf less the amount of the City's payments towards social security.
Agreement
In consideration of the recitals and the promises contained in this Agreement, the
parties agree as follows:
1. The City will pay to Oden the amount of $18,409.73 in the manner provided in
this paragraph. $4,000.00 in a lump sum payment (less standard withholding
deductions) will be paid to Oden on October 23, 2007, $2,333-33 in a second lump sum
payment (less standard withholding deductions) will be paid to Oden on or before
November 5, 2007; and $12,076.40 (less standard withholding deductions) in a third
and final lump sum payment on or before November 23, 2008.
2. The City will establish a health insurance credit account (which may be at the
discretion of the Finance Director of the City a "trust and agency account") for the
benefit of Oden in the amount of $4,000.00. This account will be used to fund Oden's
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share of the Retiree Health Insurance Program ("Program") as established by resolution
of the City Council. Pursuant to the Program as applied to Oden's circumstances and
eligibility, the City is obligated to pay 75% of Oden's premium for health insurance and
Oden is required to pay 25% of such premium. For each month Oden is eligible to
participate in the Program, the City will pay the full amount or the monthly premium for
Oden's health insurance and the City shall deduct 25% of the cost of such premium
from Oden's health insurance credit account. Such deductions shall occur each month
until such time as Oden's health insurance credit account is exhausted. Once such
account is exhausted, Oden shall pay the City 25% of the cost of the premium as
provided under the terms of the Program.
3. At any time after Oden leaves office, Oden may request the termination of the
health insurance credit account. Within fifteen days of the City's receipt of Oden's
request to terminate the account, the City shall pay Oden the amount of any funds
remaining in the account and terminate the account. Upon termination of the account,
Oden will be solely responsible for the payment of his share of the amount of the
monthly premium as provided under the Program.
4. Oden waives any claim he may have for the City to make any payments on his
behalf to PIERS or secure his enrollment or credit of time in PERS. Oden further
acknowledges that the terms of this Agreement and the City's payment of its obligations
under this Agreement constitute full satisfaction of any obligations the City may owe
Oden for the City not making the payments to PERS on behalf of Oden as generally
described in the recitals.
City of Palm Springs: Ron Oden: �nv
City Manager Ron Oden
Approved has to Form:
r V
City Attorney
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