TO: AC Transit Board of Directors
FROM: Linda A. Nemeroff, Board Administrative Officer/District Secretary
SUBJECT: Board Policy 120
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a review of Board Policy 120, Annuity Benefits for Elected Officials with no recommended amendments.
Staff Contact:
Linda A. Nemeroff, Board Administrative Officer/District Secretary
Body
STRATEGIC IMPORTANCE:
There is no strategic importance associated with this report.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this report.
BACKGROUND/RATIONALE:
Board Policy 120 is comprised of Resolution Nos. 633 and 654 and concerns the topic of providing annuity benefits to Board members.
On November 12, 1986, the Board of Directors adopted Resolution No. 633 directing the General Manager to purchase appropriate annuity contracts to provide the Board of Directors with annuity benefits. The annuity commencement date was November 1, 1986, had a maximum monthly benefit of $250, a minimum vesting period of five years, a retirement age of 55 years and provided for joint and survivor benefits. At the time, there was a one-time cost of $91,000 to establish the annuity contract.
In March of 1998, the Board amended Resolution 633 to change the minimum vesting period to 10 years and provide for monthly contributions by individual Board members of 3% of gross fees (stipend), which was $500 per month, resulting in a monthly contribution of $15.00 per Director. Board members who previously approved the District-funded annuity also had to waive their rights and instead pay into the annuity using their own funds deducted from their monthly stipend. At the time, the creation of an annuity benefit for Board members was permissible under the Public Utilities Code; however, later changes to the Public Utilities Code meant that Board members who took office after January 1, 1989, would not be eligible for the ...
Click here for full text