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Department of Human Resources recommending the Board order the Auditor-Controller to disburse $48,363.82, which includes an assignment fee of $1,400.00, from the Risk Management Fund to Structured Assignments, Inc., on behalf of employee E. K., in settlement of a grievance regarding future retirement benefits.
FUNDING: Risk Management General Liability Fund.
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DISCUSSION / BACKGROUND
The Board previously agreed to a settlement of a grievance filed by employee E.K. involving a discrepancy between the County’s contract with CalPERS for employee retirement benefits and the terms of the Memorandum of Understanding between the County and the bargaining unit representing the employee. The key term of this settlement was that the County would purchase an annuity for the benefit of the employee that would pay the difference in retirement benefits between what was promised in the MOU and what CalPERS was contractually required to provide, beginning upon the employee’s retirement. The employee, in turn, released the County from any future liability following the County’s purchase of this annuity and concurrent assignment of all contractual obligations to the annuity provider.
Because the employee’s anticipated retirement date is over two decades away, annuity providers based in the United States do not sell such annuities. Accordingly, the annuity brokerage firm of Structured Financial Associates, based in Sacramento, obtained a quote from its affiliate, Structured Assignments, Inc. (SAI), which is domiciled in Barbados. Included in this packet is an email from Andrew Fisher, Vice President of Sales and Marketing for the Structures corporate family, explaining the reasons why Barbados was chosen. SAI partners with the Royal Bank of Canada for all of its banking needs. The Royal Bank of Canada is the oldest bank operating in the Caribbean, and is a large, secure institution. An information sheet about the Royal Bank of Canada is also included in the Boa...
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