MFP Item 4
April 29, 2010
Management and Fiscal Policy Committee
Drummer, Senior Legislative Attorney
Worksession: Expedited Bill 18-10, Personnel - Retirement - Furlough
Expedited Bill 18-10, Personnel - Retirement - Furlough - Imputed Compensation,
sponsored by the Council President at the request of the County Executive, was introduced on
April 13,2010. A public hearing was held on April 27.
The Executive's Recommended FYII Operating Budget includes 10 furlough days for all
non-public safety County employees. Under the current retirement laws, an employee who takes
a furlough would also suffer a corresponding loss of retirement benefits due to the reduction in
regular earnings. However, §30-2(b)(3) of the Personnel Regulation requires the County to
ensure that retirement benefits are not adversely affected when an employee takes a furlough.
Bill 18-10 would amend the definition of regular earnings in the retirement laws to include
imputed income not received due to a furlough.
This Bill would ensure that a furlough does not reduce the employer and the employee
contributions to the plan or any pension benefit. The Bill would also prevent a furlough from
resulting in a reduced disability benefit for a member of the Retirement Savings Plan or the
Guaranteed Retirement Income Plan.
Wes Girling, Benefits Manager, OHR, testified in support of the Bill on behalf of the
Executive. See ©8. Mr. Girling testified that the Bill would implement a personnel regulation
that has existed for more than 15 years. Bob Stewart, Executive Director, UFCW Local 1994,
also testified in support of the Bill.
What is the fiscal impact of the Bill?
The OMB Fiscal Impact Statement (PIS) concludes that the Bill would have no fiscal
impact because the Executive "assumed its effect in his March 15 recommended budget." See