Alameda Case Updates
The SBCERA Board of Retirement has adopted several resolutions to address the California Supreme Court’s decision issued on July 30, 2020 in the case known as Alameda County Deputy Sheriffs’ Association et al. v. Alameda County Employees’ Retirement Association and Board of Retirement of ACERA (S247095, also known as “the Alameda case”).
Background
SBCERA is one of 20 California county retirement systems governed by the County Employees’ Retirement Law of 1937 (CERL). The issue in the Alameda case is the inclusion of several pay items in compensation earnable for “legacy” members of CERL retirement systems. At SBCERA, this “legacy” group includes retired, active, and deferred members of our Tier 1 retirement plan. The issues in the Alameda case date back to the implementation of the Public Employees’ Pension Reform Act (PEPRA) on January 1, 2013.
The Supreme Court’s decision has an effect on the manner in which SBCERA calculated retirement benefits for certain SBCERA retirees, which will result in a recalculation and reduction of benefits for some retirees. The decision also affects how SBCERA must calculate retirement benefits for some active and deferred members who may retire now and into the future.
Supreme Court Decision in Alameda Case
SBCERA Board Resolutions
SBCERA Resolution 2020-5 Regarding Implementation of Alameda Decision
SBCERA Resolution 2020-9 Regarding Employer Pay Codes of Employee Compensation
SBCERA Resolution 2021-1 Regarding Employer Pay Codes of Employee Compensation
SBCERA Resolution 2021-5 Regarding Employer Pay Codes of Employee Compensation
SBCERA Resolution 2021-6 Regarding Employer Pay Codes of Employee Compensation
SBCERA Resolution 2021-8 Regarding Employer Pay Codes of Employee Compensation
Although a relatively small portion of SBCERA’s total membership will be affected, we recognize the impact this has on those who will be affected. We want you to know we’re here to help and available to answer any questions you have. We’ll outline the affected groups below.
Who’s Affected
Current Retirees: The Supreme Court’s decision said that retirement systems like SBCERA did not have the authority to use certain pay items in the calculation of your retirement benefits after PEPRA became law on January 1, 2013. The excluded pay items include standby pay, on-call pay, and call-back pay (also known as “PEPRA Exclusions” in Resolution 2020-5). In effect, this means if you retired on or after January 1, 2013 and your “compensation earnable” used to calculate your Final Average Compensation (FAC) period includes pay items excluded by PEPRA, then SBCERA must recalculate your benefit. The recalculation will result in a reduced benefit going forward.
If you are a retiree and you are part of the group affected by this decision, SBCERA will contact you directly by mail with more information and direct contact information to your respective Retirement Specialist. We’re currently working to identify this affected group and we will reach out to you as soon as we can.
What does it mean if you are part of this affected group and you have been receiving retirement benefits based on a Final Average Compensation (FAC) period which includes pay items that should have been excluded based on the Supreme Court’s decision? It means two things:
- You received an overpayment of benefits since your benefit calculation at the time of retirement included PEPRA excluded items. However, based on the Board’s adoption of Resolution 2020-6, SBCERA will not recoup benefit overpayments directly from you from the date of your retirement through July 31, 2020—unless so directed by the Internal Revenue Service (IRS) or a court of law.
- SBCERA will make a “corrective distribution” to you if the contributions you paid on the affected pay items exceed any retirement benefit you may have received associated with those same items. If you are eligible for a corrective distribution, we will calculate the amount owed to you and provide you with details in a future correspondence.
Importantly, if you are a retiree and your compensation earnable used to calculate your FAC period did not include any of these pay items, you will not be affected by this decision.
Active and Deferred Members: If you are still working as an active member of SBCERA or if you are no longer working but not yet retired, you may be affected by the Supreme Court’s decision. That’s because the Supreme Court’s decision said that retirement systems like SBCERA do not have the authority to use certain pay items in the calculation of your retirement benefits.
If you are an active or deferred member, there are two types of pay items in question that SBCERA must not include in your “compensation earnable” used to calculate your Final Average Compensation (FAC) period:
- PEPRA Exclusion: Any pay item for additional services rendered outside of normal working hours, such as standby pay, on-call pay, and call-back pay, etc.
- Alameda Exclusion: Non-compensation items such as employer-paid premiums to a third-party (e.g. insurance providers) or in-kind cash.
Additionally, if you are part of this affected group, you may be entitled to a refund, in the form of a “corrective distribution”, on payments you may have made on the excluded pay items noted above. The following section provides more information on these refunds.
What happens to the contributions I paid to SBCERA—will I get a refund?
If you are an active or deferred member (or if you retired on or after July 30, 2020), the contributions you may have made on either the Alameda or PEPRA excluded items will be handled differently, depending on the type of the excluded item. Resolution 2020-6 outlines the approach for the administration of these corrections. In short, here’s how these will be handled:
PEPRA Exclusions:
- Corrective Distributions to active and deferred members (and those who retired on or after July 30, 2020): You may receive a “corrective distribution” to you on contributions you may have made from January 1, 2013 through August 29, 2020 on the excluded types of pay items in this category of additional services rendered outside of normal working hours, which include items such as standby pay, on-call pay, and call-back pay. Contributions made prior to the implementation of the enactment of PEPRA on January 1, 2013 will not be refunded, because those contributions were eligible for inclusion in compensation earnable for members who retired prior to the implementation of PEPRA.
Alameda Exclusions:
- Refunds for active and deferred members (and those who retired on or after July 30, 2020) on Non-compensation items such as employer-paid premiums to a third-party (“Alameda Exclusions”): The SBCERA Board of Retirement determined that you should receive a corrective distribution to you on all contributions you may have made prior to July 30, 2020 on certain types of employer-paid premiums to a third-party. That’s because these pay items are not eligible to be included in your compensation earnable used to calculate your Final Average Compensation (FAC) period.
Who’s Not Affected
You are not affected by the Supreme Court’s recent ruling in the Alameda case if you have not received any standby pay, on-call pay, call-back pay, or employer paid premiums made to a third-party. Other common items of compensation, service time and benefits are not at issue in the Alameda case—including base pay, vacation, annual leave, holiday pay, and service purchases.
Additionally, if you are a Tier 2 member who was hired on or after January 1, 2013 and received compensation for any PEPRA or Alameda excluded pay items, the Alameda decision won’t affect your Final Average Compensation (FAC) because those pay codes are not includes in your FAC for retirement benefit calculations.
While PEPRA is applicable to all SBCERA members, most members are not directly affected by the Supreme Court’s ruling in Alameda.
Additional Frequently Asked Questions (FAQs)
What is the Alameda case all about?
In Alameda the California Supreme Court addressed two issues. First, the court addressed whether retirement systems were prohibited by prior settlement agreements from implementing statutory changes to retirement systems. Second, the court addressed the constitutionality of legislative changes to the retirement law that excluded certain pay items from compensation earnable for legacy members of the retirement systems.
These issues first arose when the Public Employees’ Pension Reform Act (PEPRA) became effective on January 1, 2013. PEPRA mostly affected people who were hired after the effective date. Some parts of PEPRA, however, affect retirement system members who were hired prior to the effective date. These members are referred to as “legacy members.”
PEPRA changed the definition of compensation earnable for legacy members. Compensation earnable is the compensation SBCERA uses to calculate retirement benefits. PEPRA excluded from compensation earnable pay for services rendered outside of normal working hours and pay that was provided in order to increase a member’s retirement benefit, and it also placed limits on the inclusion of leave cash-out payments in compensation earnable. Retirement system members in Alameda, Contra Costa, Merced, and Marin counties sued their retirement systems claiming that exclusion of these items from compensation earnable was prohibited, because the retirement systems previously entered settlement agreements that included the items in compensation earnable—and the exclusion of the pay items was not compensated by a benefit of equal value. Three of the four cases were consolidated into the Alameda case.
What did the Supreme Court say in Alameda?
The Supreme Court upheld the exclusion of the pay items from compensation earnable. First, the court said that the retirement systems were not prohibited from excluding the pay items by the settlement agreements because the California Legislature passed a new law that changed the definition of compensation earnable. The Supreme Court said that the retirement systems must follow the law that the Legislature provided when it enacted PEPRA, and the retirement systems do not have the authority to disobey the law despite the settlement agreements. Second, the Supreme Court held that the changes to compensation earnable were constitutional and did not interfere with the contract between employers and employees because the changes were related to the ongoing health of the retirement systems. The court also excluded payments to third parties such as medical premium payments.
Which counties does this decision affect?
The Supreme Court’s decision affects all 20 of the county retirement systems that operate under the County Employees’ Retirement Law of 1937 (CERL). SBCERA is the retirement system for San Bernardino County and other employers in the county. SBCERA is one of the retirement systems that operates under the CERL.
If I am an active employee, and I retire now, will I be able to keep on-call and stand-by pay in my compensation earnable?
No. The court said that the retirement systems must follow the statute and do not have the authority to disobey the statute once it became law. The SBCERA Board of Retirement adopted a resolution that requires SBCERA to immediately comply with the Alameda case and the PEPRA changes to compensation earnable.
Why did SBCERA previously include these items in compensation earnable?
PEPRA raised many questions when it became law. The constitutionality of several provisions in PEPRA has been challenged. The Alameda case is one of those challenges. Because of the challenges, the SBCERA Board of Retirement decided to continue to include the pay items until the issue was settled in the courts.
I’m an Active or Deferred Member. How can I currently see an accurate retirement estimate based on Alameda exclusions?
You can run an estimate in your mySBCERA account. If you don’t have a mySBCERA account, you can sign up at www.SBCERA.org/mySBCERA. (Once you are in your account, select “Estimate a Benefit.”) PEPRA and Alameda excluded pay items have been removed from mySBCERA and will be excluded from your estimate.
My former spouse is receiving a portion of my retirement as a result of our divorce. Will my former spouse’s payments be recalculated too?
Yes, if your former spouse is receiving a percentage of your benefit pursuant to a Domestic Relations Order. Your former spouse will continue to receive the same percentage, but the dollar amount will be reduced due to the recalculation.
Do I owe any money to SBCERA?
SBCERA is exploring this issue. SBCERA will take action consistent with state and federal law, including IRS rules.
I am retired, and my compensation earnable included medical premium payments. Does the Alameda decision affect me?
The SBCERA Board of Retirement determined that the mandatory exclusion of medical premium payments from compensation earnable is a new interpretation of the law. Therefore, the exclusion of medical premium payments from compensation earnable will not affect any retirees who retired before July 30, 2020.
I am an active employee, and I have been paying contributions on medical premiums with the understanding that the premium payments would be included in my compensation earnable. What is SBCERA going to do with my contributions if the medical premium payments are no longer included in compensation earnable?
The SBCERA Board has directed staff to refund all contributions made on medical premium payments. For current employees, the refunds will be made through your employer. For deferred members, the payments will be made directly to you. You should consult with a tax professional to determine the tax issues of this refund.
Status on Refunds for Active Members
SBCERA is close to finalizing refunds related to the California Supreme Court’s decision in the Alameda case. If you are eligible for a refund, there are two steps to look forward to:
- Your Informational Letter: This letter includes information about the amount of your refundable contributions plus interest, a timeline, and an overview of how your refund will be paid. These letters have been sent out to some members, but we’re still working on letters for members at most of our employers, including San Bernardino County.
- Your Refund: We have issued refunds for most of our employers, and are currently working on processing the remaining refunds for San Bernardino County. Members eligible to receive refunds have either already received their informational letter or will receive it soon.
We appreciate your patience as we continue to work through several important steps to calculate and process refunds for over 4,500 SBCERA members. We’ve continued to work collaboratively with our participating employers to determine the amounts of these refunds. Calculating your refund has required a comprehensive review to determine the total amount of refund-eligible employee contributions you paid on the pay items affected by the Alameda case.
For most refunds, we have required additional reporting from our employers, including research into payroll records and verification of calculations for thousands of members. For others, we were able to process refunds more easily for members with some of our smaller employers.
What about interest?
Interest will be applied to your refund in accordance with the SBCERA Board of Retirement’s determination in April 2021. The Board approved an approach in which interest for the Alameda-related refunds would be credited in accordance with the “Member Crediting Rate” outlined in Actuary and Audit Policy No. 002, “Interest Crediting Procedures and Undesignated Excess Earnings Allocation.” The Member Crediting Rate is the lesser of the assumed investment earnings, or the six-month T-bill rate as of the last public auction. A table of SBCERA’s historical Member Crediting Rate can be found in the link below.
SBCERA History of Member Crediting Rate
What about cash-outs?
The Alameda case clarified that cash-outs which may exceed what is earned and payable in each 12-month period during a member’s Final Average Compensation (FAC) period must be excluded as compensation earnable. This practice of including two maximum cash-outs from two separate calendar years is sometimes called “straddling” and is clearly prohibited, which was affirmed in the Supreme Court’s decision.
Upon a member’s retirement, SBCERA will ensure that any cash-out dollars which are included in the member’s FAC are consistent with the clarifications provided by the Alameda decision.
Pay Items in Question
As part of the Alameda decision, there are two types of excluded pay items:
PEPRA Exclusion: Any pay item for additional services rendered outside of normal working hours, such as standby pay, on-call pay, and call-back pay.
Alameda Exclusion: Non-compensation items such as employer-paid premiums to a third-party (e.g. insurance providers).
Within these two types of exclusions are specific pay items classified by your employer. The exclusion of these pay codes have different effective dates based on the Alameda decision and related SBCERA Board Resolutions.
Excluded Pay Items
Barstow Fire Protection District
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | 1200 | N/A | Empl Group Ins Employer Paid Medical/Dental | 7/30/2020 |
| Alameda | BFMED | N/A | Empl Paid Medical/Dental | 7/30/2020 |
| Alameda | LLIP | N/A | Empl Paid Medical/Dental Insurance Premium |
Big Bear Fire Authority
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | BASB | BARSB | Stand By Pay | 7/30/2020 |
California State Association of Counties
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | CSINS | CSRIN | Association Paid Medical and Dental Insurance Premiums | 7/30/2020 |
| Alameda | 1200 | N/A | Employer Group Insurance Employer Paid Medical/Dental | 7/30/2020 |
| Alameda | BFMED | N/A | Employer Paid Medical/Dental Insurance Premium | 7/30/2020 |
| Alameda | CHFBP | N/A | Employer Paid Flexible Benefit Dollars | 7/30/2020 |
| Alameda | LLIP | N/A | Employer Paid Medical and Dental Insurance Premium | 7/30/2020 |
| Alameda | MAFBP | N/A | Employer Paid Medical and Dental Insurance Premium | 7/30/2020 |
City of Big Bear Lake
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | BBFBP | BBRFB | Employer Paid Flexible Benefit Plan; Alternative Insurance Benefit Program | 7/30/2020 |
| Alameda | BBEFB | BBREF | Employer Paid Flexible Benefit – Excess Cash Paid to Member | 7/30/2020 |
| Alameda | BBSB | BBRSB | Stand By Pay | 7/30/2020 |
| Alameda | BPSY1 | N/A | Standby | 7/30/2020 |
| Alameda | MASB | N/A | Standby | 7/30/2020 |
| Alameda | HPSY1 | N/A | Standby | 7/30/2020 |
| Alameda | BFSY1 | N/A | Standby | 7/30/2020 |
| Alameda | FLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | BBFLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | ILFLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | CHFBP | N/A | Emp Paid Flex Benefit Dollars | 7/30/2020 |
City of Chino Hills
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| PEPRA | CHOC | CHR24 | On-Call Pay-Employees Assigned to 24 Hour On-Call Duty | 1/1/2013 |
| PEPRA | CHOCD | CHROC | On-Call Differential for Specific Supervisory Classes | 1/1/2013 |
| Alameda | CHFBP | CHRFX | Employer Paid Flexible Benefit Dollars – 3rd Party Premium | 7/30/2020 |
| Alameda | BBFBP | N/A | Employer Paid Flexible Benefit Plan | 7/30/2020 |
| Alameda | BPFLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | FLX | RFX | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | ILFLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | SBFLX | N/A | Flexible Benefit Dollars | 7/30/2020 |
| Alameda | BPOC1 | ROC | On Call | 7/30/2020 |
| Alameda | BFOC1 | On Call | 7/30/2020 |
Crestline Sanitation District
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | CSDC07 | CSDRCB | Call Back | 7/30/2020 |
| Alameda | CSDSY1 | CSDRSB | Standby | 7/30/2020 |
| Alameda | SY6 | RY6 | Standby Minimum Wage | 7/30/2020 |
| Alameda | CSDFLX | CSDRFX | Flexible Benefit Plan Dollars – Excess Cash Paid to Member | 7/30/2020 |
| Alameda | BFCB1 | N/A | Call Back – 2Xs Base Pay Rate | 7/30/2020 |
| Alameda | BFOC1 | N/A | On Call | 7/30/2020 |
| Alameda | MAOC | N/A | On Call | 7/30/2020 |
| Alameda | OC1 | CSDROC | On Call | 7/30/2020 |
| Alameda | BFSY1 | N/A | On Call | 7/30/2020 |
| Alameda | HPSY1 | N/A | Standby | 7/30/2020 |
| Alameda | 1218 | N/A | Standby | 7/30/2020 |
| Alameda | C07 | N/A | On Call | 7/30/2020 |
| Alameda | 1219 | N/A | On Call | 7/30/2020 |
| Alameda | SY1 | N/A | Standby | 7/30/2020 |
Department of Water & Power of the City of Big Bear Lake
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | BBFBB | BBRFP | Employer Paid Flexible Benefit Plan | 7/30/2020 |
| Alameda | BBSB | BBRSB | Stand By Pay | 7/30/2020 |
| Alameda | BBFBP | N/A | Emp Paid Flexible Benefit Plan | 7/30/2020 |
| Alameda | BPFLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | FLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
| Alameda | ILFLX | N/A | Flexible Benefit Plan Dollars | 7/30/2020 |
Hesperia Recreation and Park District
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | BFMED | N/A | Employer Paid Premium | 7/30/2020 |
| Alameda | OC7 | N/A | On Call (Hesperia) | 7/30/2020 |
Law Library for San Bernardino County
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | LLIP | LLRIP | Employer Paid Medical and Dental Insurance Premiums | 7/30/2020 |
Local Agency Formation Commission
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | FLX | N/A | Flexible Benefit |
Mojave Desert Air Quality Management District
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | MASB | MARSB | Standby | 7/30/2020 |
| Alameda | MAOC | MAROC1 | On Call | 7/30/2020 |
| Alameda | MAFBP | MARFB | Employer Paid Benefit Plan | 7/30/2020 |
| Alameda | FLX | N/A | Employer Paid Benefit Plan | 7/30/2020 |
| Alameda | ILFLX | N/A | Employer Paid Benefit Plan | 7/30/2020 |
| Alameda | LAFLX | N/A | Employer Paid Benefit Plan | 7/30/2020 |
San Bernardino County
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| Alameda | C01 | RY1 | Standby CNT – $2.50 | 7/30/2020 |
| Alameda | C02 | RY1 | Standby CNT – $3.50 | 7/30/2020 |
| Alameda | C03 | Ry1 | Standby CNT – Min Wage | 7/30/2020 |
| Alameda | C05 | RC1 | On Call CNT – $2.50 | 7/30/2020 |
| Alameda | C06 | RC1 | On Call CNT – $3.50 | 7/30/2020 |
| Alameda | C12 | RDM | Weekend CBT Diff – $3.00 | 7/30/2020 |
| Alameda | CB1 | RCB | Call Back – 2 Times BRP | 7/30/2020 |
| Alameda | CB2 | RCB | Call Back – 3 Times BRP @Prn | 7/30/2020 |
| Alameda | D06 | N/A | Lab Tech $10/Call | 7/30/2020 |
| Alameda | D07 | N/A | Lab Tech $16 | 7/30/2020 |
| Alameda | D08 | N/A | Lab Tech $32 | 7/30/2020 |
| Alameda | D09 | RDM | Diff Weekend | 7/30/2020 |
| Alameda | D56 | RDM | Diff Weekend | 7/30/2020 |
| Alameda | OC1 | ROC | On Call | 7/30/2020 |
| Alameda | OC2 | ROC | On Call Safety | 7/30/2020 |
| Alameda | OC3 | ROC | On Call OC | 7/30/2020 |
| Alameda | OC4 | ROC | On Call Safety OC | 7/30/2020 |
| Alameda | OC5 | RC5 | On Call – Special District | 7/30/2020 |
| Alameda | OC6 | ROC | On Call – $3.50 | 7/30/2020 |
| Alameda | OC7 | N/A | On Call (Hesperia) | 7/30/2020 |
| Alameda | OC8 | N/A | On Call Fire | 7/30/2020 |
| Alameda | OC9 | ROC | On Call Critical | 7/30/2020 |
| Alameda | SY1 | RSB | Standby | 7/30/2020 |
| Alameda | SY2 | RSB | Standby-Minimum Wage | 7/30/2020 |
| Alameda | SY3 | RSB | Standby – Minimum Wage Fire | 7/30/2020 |
| Alameda | SY4 | RSB | Standby – Amounts Only | 7/30/2020 |
| Alameda | SY5 | RSB | Standby SY | 7/30/2020 |
| Alameda | SY6 | RSB | Standby – Fed Minimum Wage | 7/30/2020 |
| PEPRA | DCH | RCV | Chief Officer Coverage Pay | 1/1/2013 |
| PEPRA | DSG | RSO | Diff Safety Officer Pay GFathr | 1/1/2013 |
| PEPRA | DCR | RCV | Chief Officer Coverage Pay Premium | 1/1/2013 |
| PEPRA | DSO | RSO | Safety Officer Coverage | 1/1/2013 |
| PEPRA | PK9 | RK9 | Paid Canine Officer Pay | 1/1/2013 |
San Bernardino County Transportation Authority
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | |
|---|---|---|---|---|
| Alameda | FL1 | N/A | Flex – Manual Pay | 7/30/2020 |
| Alameda | FLX | RFX | Flexible Benefit Plan Dollars | 7/30/2020 |
South Coast Air Quality Management District
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| PEPRA | AQSP | AQRSP | Standby Pay | 7/30/2020 |
| Alameda | AQD | AQRD | Dental | 7/30/2020 |
| Alameda | AQLI | AQRLI | Life Insurance | 7/30/2020 |
| Alameda | AQM | AQRM | Medical | 7/30/2020 |
| Alameda | AQV | AQRV | Vision | 7/30/2020 |
Superior Court of San Bernardino County
| Pay Item Type | Earnings Code | Retro Earnings Code | Earnings Code Description | Exclusion Effective Date |
|---|---|---|---|---|
| PEPRA | SPOC | SPROC | On Call | 1/1/2013 |
| PEPRA | SPSB | SPRSB | Standby | 1/1/2013 |
| PEPRA | SPS1 | SPRS1 | Standby – Minimum Wage | 1/1/2013 |
| Alameda | SPFLX | SPRFX | Flexible Benefit Plan Dollars | 1/1/2013 |
Pay Items Reviewed and Approved
SBCERA staff has reviewed the following pay items and the SBCERA Board of Retirement determined that these items are approved to be included in compensation earnable.
California State Association of Counties
| Earnings Code | Retro Earnings Code | Earnings Code Description |
|---|---|---|
| CSHIB | CSRHB | Health Insurance Buyouts |
City of Chino Hills
| Earnings Code | Retro Earnings Code | Earnings Code Description |
|---|---|---|
| CHFBO | N/A | Flexible Benefit Opt-Out – Cash to Member |
| CHFBE | N/A | Flexible Benefit – Excess Cash to Member |
San Bernardino County Transportation Authority
| Earnings Code | Retro Earnings Code | Earnings Code Description |
|---|---|---|
| FLXC | N/A | Flexible Benefit Plan – Excess Cash Paid to Member |
| 100 | N/A | Internet Allowance |
| L01 | N/A | Personal Computer Allowance |
South Coast Air Quality Management District
| Earnings Code | Retro Earnings Code | Earnings Code Description |
|---|---|---|
| AQBC | AQRMC | Employer Paid Benefit Cap (Excess Cash Paid to Member) |
Superior Court of San Bernardino
| Earnings Code | Retro Earnings Code | Earnings Code Description |
|---|---|---|
| SPRTC | SPRRC | Retirement – Excess Cash |
| SPFLC | SPRFL | Flexible Benefit Plan – Excess Cash Paid to Members |
Based on the employers’ descriptions of the pay items above, the SBCERA Board determined that the reporting of the cash paid to the employee remaining in excess of the insurance payment is proper and should be treated as compensation earnable for Tier 1 SBCERA members. This conclusion is based on the fact that the “excess cash” is paid to all employees in the same job classification, and thus is compensation within the meaning of Government Code section 31460. This means only the portion that is received directly in cash by the employee, and not as a reimbursement for the purchase of insurance, should be reported as compensation earnable.
More information can be found on our Employer Pay Codes page.
Information Regarding Appeals for Retirees Receiving Recalculations
The appeals period for SBCERA members affected by the Alameda decision has closed. Members who were eligible to file appeals were provided with information regarding the appeals process.
Members with questions regarding appeals related to the Alameda decision may contact SBCERA for more information.