April 19, 2022
Human Resources
DATE: April 19, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Laura Marquez, Human Resources Manager – Risk
Management
Subject:
Amend Resolution for CalPERS Industrial Liability
Retirement
FINANCIAL IMPACT: The resolution will have no immediate financial impact on the General Fund.
PREVIOUS COUNCIL
ACTION:
December 4, 1995
STATEMENT OF THE
ISSUE:
CalPERS found that the City’s current resolution
(Resolution No. 241-95), dated December 4,1995, is
outdated and does not delegate authority to anyone in
the City of Richmond to file Employer Originated
Disability Applications when needed. In addition, the
current resolution only allows the Risk Manager to make determinations of industrial disability on behalf of the City. We are requesting to amend the current resolution by expanding the delegated authority to include the
Human Resources Manager(s) and the Director of
Human Resources/Personnel Director (in addition to, not in place of the Risk Manager). This will provide additional staff to serve as a back up, if needed.
AGENDA
REPORT
April 19, 2022
RECOMMENDED ACTION:
AMEND Resolution No. 241-95 to delegate authority to
the Human Resources Manager(s) and the Director of
Human Resources/Personnel Director to (1) file
Employer Originated Applications on behalf of the City for disability retirement of all employees and (2) approve or deny industrial disability retirement based on credible medical documentation. Such approval will not rescind
the Risk Manager’s existing authority by taking either of the aforementioned actions – Human Resources (Laura
Marquez/Erika Carty 510-620-6974).
DISCUSSION:
CalPERS (PERS) determined that our current resolution (Resolution No. 241-95), dated December 4,1995 is outdated as it does not delegate authority to anyone in the City to file Employer Originated Disability Applications when needed. In the past, the Risk Manager would sign Employer Originated Applications for individuals that are unable to return to work in any capacity. The employee still has to complete their portion of the disability application, but the City is permitted to start the process. It wasn’t until December 2021, when an application was submitted and PERS indicated that the City had not designated signing authority for the application, that the City became aware the existing resolution is inadequate. We currently have four (4) employees that have been off work over a year and have not yet filed for retirement.
Additionally, the current resolution only allows the Risk Manager (currently the Human Resources Manager – Risk Manager) to make determinations of industrial disability on behalf of the City. In mid-2020, this became an issue when the Risk Manager was out on leave and a disability application was ready to be approved. The Assistant Risk Manager signed the application and PERS returned it saying only the Risk Manager could sign. The City asked PERS if the Human Resources Director or City Manager could sign the application and again PERS said no; that the only person with authority is the Risk Manager.
To avoid any similar issues in the future, we are requesting that City Council expand the delegated authority to include both the Human Resources Managers and the Director of Human Resources/Personnel Director. This expanded delegation will not serve to rescind the Risk Manager’s existing authority, but rather will provide two high level managers in addition to the Risk Manager who can approve determinations. This will provide a back-up option should the Risk Manager be unavailable to file applications or make industrial disability determinations.
DOCUMENT ATTACHED:
Attachment 1 – Resolution