1 Approved:
City of Riverside, California
Human Resources Policy and Procedure Manual __________________ Human Resources Director
______________________
City Manager
Number: V-14 Effective Date: 07/06
SUBJECT: TEMPORARY/SEASONAL EMPLOYEE BENEFITS
PURPOSE:
To define establish and clarify the City of Riverside’s benefit provisionss for temporary/seasonal employees in order to ensure consistent for uniformity of interpretation and application.
POLICY:
Temporary/seasonal employees may be eligible for participation in City fringe benefits as required by State and/or Federal law. This includes participation in the deferred compensation plan and/or the California Public Employees Retirement System (CalPERS), and other fringe benefits including medical coverage, sick leave and bereavement leave. coverage. This does not apply to temporary employees hired through a contract agency.
1. Deferred Compensation
Enrollment in deferred compensation for temporary/seasonal employees is automatic and mandatory under in accordance with Federal law, unless and/until the employee becomes vested in CalPERS. To be considered vested, members must have five (5) years of service credit with CalPERS and must have funds still in the system. the employee has current membership with CalPERS.
This temporary deferred compensation plan is in lieuserves as a replacement for of Social Security participation. The Under this plan, the City matches the required employee contribution of 3.75%. This plan does not apply to temporary employees hired through a contract agency.
2. CalPERS
Enrollment in CalPERS is mandatory for temporary employees if when either of the following criterionscriteria is met:
A. The temporary employee is already an active vested CalPERS member at the time of hire through employment with another CalPERS covered employeragency. If the temporary employee becomes eligible for CalPERS membership through employment with another CalPERS covered agency after starting employment with the City. The employee must notify the Human Resources department immediately. 2 B. The individual is a temporary employee who reachesworks 1,000 hours in a fiscal year, including overtime, or if the expectation at appointment is that the employee will reach 1,000 hours in the fiscal year. It is the dDepartment’s responsibility to track hours worked and to submit a Personnel Action Form to the Human Resources Department to enroll the employee in CalPERS. See Policy V-13 Retirement (CalPERS) for additional information.
Enrollment in CalPERS applies to temporary employees hired through a contract agency.
3. Withdrawal of Contributions from Deferred Compensation or CalPERS
A. The temporary Ddeferred cCompensation Pplan is subject to the same Internal Revenue Service (IRS) regulations as the regular Ddeferred Ccompensation Pplan. Employees may only withdraw funds in the event of separation or death. In accordance with Section 457(e)(9)(A) of the Internal Revenue Service (IRS) , an employee who is still employed with the City and is no longer eligible to participate due to a change of employment status to a position covered by another retirement system, shall be eligible for a limited in-service distribution if (a) the employee has a balance of less than $7,000, (b) there has been no previous distribution to the employee from this plan, and (c) the employee has had no deferrals into the plan for a period of 24 consecutive months.
B. Employees may choose to take a refund of their member contributions and interest at the time they separate from the City. Taking a refund terminates the CalPERS membership and the employee will forfeits their right to future CalPERS benefits. Employees may contact CalPERS directly for additional implications to terminating membership. .
Employees vested in CalPERS are entitled to both the employee and employer contributions. In the event the employee terminates their membership and later becomes employed by a CalPER S-covered employer in a position that has automatic CalPERS membership, the employee should contact CalPERS to determine if they are eligible to re- deposit their contributions. Such withdrawals may be bought back at a later time if the individual becomes employed by another CalPERS covered agency. This ASservice Ccredit Bbuy-Bback@ provision is administered by CalPERS and is subject to State regulations.
4. Other Fringe Benefits
Temporary/seasonal employees may be eligible for additional fringe benefits as required by State and/or Federal law , including medical coverage, sick leave and bereavement leave. For medical coverage eligibility, see Policy V-9, Health/Vision and Dental Insurance for additional information. For sick leave and bereavement leave benefits, see the Fringe Benefits and Salary Plan for additional information.
PROCEDURE:
Responsibility Action
Number: V-14 Effective Date: 07/06
3 Employee 1. Notifies Human Resources if he/she is a
member of CalPERS through another
employer.
Human Resources 2. Enrolls new hires in the temporary Deferred Compensation Account.
3. Enrolls new hires in CalPERS if any quali -
fications under Section 2 of this policy are met.
Department 4. Monitors hours worked by temporary
employees and submits a Personnel Action
Form to enroll in CalPERS as required under
Section 2 of this policy.
Human Resources 5. Notifies CalPERS and Deferred Compensation Provider in case of separation.
Disclaimer: This policy is for internal processes only. Should a discrepancy exist between this document policy and Federal or State Law, the Federal or State Law will prevail.