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CC - Item 5A - Temporary Continuation of Salary and Benefits for Full-Time Team Members Called to Military DutyROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: JULY 14, 2009 SUBJECT: TEMPORARY CONTINUATION OF SALARY AND BENFITS FOR FULL- TIME TEAM MEMBERS CALLED TO MILITARY DUTY SUMMARY A full-time team member of the City of Rosemead has been ordered to fulfill a military tour of duty in Iraq for a period of one year. Federal and State law require public agencies to guarantee reinstatement upon completion of the military assignment and continuation of salary for 30 days. The City Council will consider a policy that authorizes temporary continuation of salary and benefits to the team member for the entire duration of the military leave less income received from the military. Such a policy would enable a team member and his/her family's income to "remain whole" during the military tour of duty. The City will review each request for this benefit on a case-by-case basis considering various factors such as job performance, length of service, availability of funds, etc. Staff Recommendation Staff recommends that the City Council authorize a temporary continuation of salary and benefits for regular full-time city team members. ANALYSIS The City of Rosemead is currently in compliance with the Federal and State laws regarding military leaves. While the current law guarantees the reinstatement of reservists, once their military assignment has been completed, it only requires that agencies provide those individuals with continued salary for the first 30 days of duty. In consideration of the potential loss of income, municipalities in the San Gabriel Valley and throughout Southern California have been providing additional temporary paid leave and continuation of benefits for team members recalled to active duty to defend the United States of America. Since a tour of duty for reservists generally last over 30 days, a team member called to active duty may experience financial hardship for his/her family. The authorization of a temporary continuation of salary and benefits for full-time team members would allow APPROVED FOR CITY COUNCIL AGENDA: ITEM NUMBER: 5 IN City Council Meeting July 14, 2009 Page 2 of 2 these individuals to be compensated by the City for the difference between the amount the employee would receive from the regular city gross bi-weekly wage (base rate, not including overtime) and the amount the team member receives from his/her military service including all allowances. The continuation of salary and benefits would be for the entire duration of the duty. The team member's benefits would be continued for the team member and his/her family in the manner it would be provided if the team member was actively employed by the City. In order to access this temporary continuation of salary and benefits, the team member must provide documentation of their military pay in a form acceptable to both the Assistant City Manager and Director of Finance. In addition, to qualify for this benefit, a team member must be in City employment for a period of one (1) year and off probation upon being called for military duty. The City will review each request for this benefit on a case-by-case basis considering various factors such as job performance, length of service, availability of funds, etc. Underwriting policy for the City's Long Term Disability (LTD), Life Insurance and Accidental Death & Dismemberment (AD&D) plans require that an employee be "actively at work" for continued coverage. Due to this carrier restriction, coverage under these plans is suspended during time of active military service. FINANCIAL REVIEW It is estimated that the City may experience a slight salary savings as the fiscal impact would be the cost of the salary and benefit continuance minus the team member's military pay. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: V- Su Tan Human Resources Manager