Laserfiche WebLink
<br />and this Memorandum of Understanding. <br /> <br />1. Minnesota Statute§ 356.24, Subd. 1(10) expressly authorizes the Employer to contribute public <br />funds to the Central Pension Fund as a supplemental pension plan for the employees of a <br />governmental subdivision who are covered by a collective bargaining agreement that <br />provides for such coverage. <br />2. Sections 4.1 of the Restated Agreement and Declaration of Trust of the Central Pension <br />Fund and 13.01 of the Plan of Benefits only permits Employer Contributions to the Fund. <br />3. The Parties agree that the agreed upon Employer contribution amount that would <br />otherwise be paid in salary or wages will be contributed instead to the CPF as a pre-tax <br />Employer contribution. Contributions from the Employer will not be funded from any <br />other source unless agreed upon by the parties. <br />4. The hourly contribution rate will be applied to every hour compensated (i.e. hours <br />worked, vacation, holiday and sick time) except for overtime hours worked. The <br />Employer shall remit this contribution directly to the Central Pension Fund at P.O. Box <br />418433 Boston, MA 02241-8433. <br />5. A contribution of $2.403.00 per straight time hours compensated prevents annual <br />Central Pension Fund contributions on behalf of eligible Employees from exceeding <br />$10,000.00 in a year and therefore complies with the limitations set forth under <br />Minnesota Statute, <br />§356.24, Subd. 1(10) as amended. <br />6. For purposes of determining future wage rates, the Employer shall first restore the <br />amount of the Employer Contribution, which is currently the CPF contribution rate of <br />$2.403.00 per hour, then apply the applicable wage multiplier, then reduce the revised <br />wage by the Central Pension Fund contribution rate. <br />7. For purposes of calculating overtime compensation, the Employer shall first restore <br />the amount of the Employer Contribution $2.403.00 then apply the applicable 1.5 <br />wage multiplier required under the Fair Labor Standards Act (FLSA) and the <br />Collective Bargaining Agreement, then pay the resulting amount for overtime <br />worked. <br />8. The Parties agree that the Public Employees Retirement Association (PERA) interprets <br />Employer contributions to the Central Pension Fund as being included in determining <br />"salary" for the purposes of the public pension. <br />9. The parties agree to abide by the terms and conditions of the Restated Agreement and <br />Declaration of Trust and the Plan of Benefits of the Central Pension Fund. <br />10. Effective January 1, 2022, the contribution rate equals $2.403.00 per straight time hour <br />compensated. <br />11. Members, by majority vote, may change the contribution rate at any time during the <br />life of the Collective Bargaining Agreement. The Union and Employer will work <br />together to implement member approved changes as soon as is practicable.