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Item 21 050609 Mandatory Furlough Memo


									                                                                           Agenda Item No. __________
                                                           FRESNO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION
                                                                                       BOARD OF RETIREMENT
                                                                                            Alan Cade, Jr., Chair
                                                                                      Eulalio Gomez, Vice Chair
                                                                                               Michael Cardenas
                                                                                                Nick Cornacchia
                                                                                                      Vicki Crow
                                                                                               James E. Hackett
                                                                                                  Steven J. Jolly
                                                                                                     Phil Larson
Roberto L. Peña                                                                                   John P. Souza
Retirement Administrator                                                               Ronald S. Frye, Alternate

DATE:          May 6, 2009

TO:            Trustees, Board of Retirement

FROM:          Roberto L. Peña
               Retirement Administrator

SUBJECT: Mandatory Furlough Programs

On March 24, 2009, the Board of Supervisors confirmed the decision of the County
Administrative Officer to activate Personnel Rule 12, Section 12060 – Mandatory Furlough in
Fiscal Year 2009-10 and future fiscal years for certain bargaining units and non-elected
department heads, management (including Senior Management) and unrepresented
employees. I have attached a copy of the Board of Supervisors’ Agenda Item and Personnel
Rule 12 for your reference. Please note the composition and representation of FCERA’s
staff is as follows:

   1. Office Assistants and Account Clerks, Bargaining Unit 12,represented by SEIU 535
   2. Accountants (excluding the Supervising Accountant), Bargaining Unit 19, represented
      by ICE
   3. Supervising Account Clerk II, Bargaining Unit 36, represented by SEIU 535
   4. Retirement Coordinators, Retirement Coordinator Supervisor, Administrative
      Secretary, Supervising Accountant and Systems and Procedures Analyst,
   5. Assistant Retirement Administrator and Retirement Benefits Manager, Senior Mgt
   6. Retirement Administrator, Department Head

In my discussions with the County’s Personnel Department, it was noted that those FCERA
County employees who are mandated by Personnel Rule 12, require your Board’s approval
to implement Mandatory Furlough as they are governed by your separate and independent
Board. I strongly believe that adopting the mandatory furlough policy for FCERA’s staff
illustrates our understanding of the difficulties with the current financial and budgetary times
and our willingness to collaborate on tackling such issues while at the same time would show
solidarity with the County’s budget issues. On the other hand, at this time I do not support
the notion of a reduced work week currently in the preliminary stages of discussion at the
County, or the closing of the office to the public as discussed in the attached Board of
Supervisors Agenda Item.

                      1111 H Street, Fresno, CA 93721, Tel 559.457.0681 Fax 559.457.0318
                                                                         Agenda Item No. __________

In addition, some staff may also have the option to participate in the voluntary furlough
program which was adopted by the County several years ago. Under this program,
employees may request up to 120 hours of unpaid leave per year with the loss of pay spread
over 26 pay periods. Department Heads are mandated to establish the maximum amount of
hours that could be taken by employees within their respective departments based on
workload needs. I have always set the limit at 80 hours after consultation with FCERA’s
management group. Historically, three to five FCERA staff elected to participate in the
program. I will continue to allow up to 80 hours of voluntary furlough, which is in addition to
the mandatory furlough, for eligible employees.

I have directed FCERA staff to comply with the requirements of the various furlough
requirements as identified by the County. As we currently understand the program, the
mandatory unpaid leaves will be implemented as follows:

   1. Bargaining Unit 12 will take 40 hours of unpaid leave with a reduction to their pay at
      the time of the absence.
   2. Bargaining Units 19 and 36 are not mandated to take furlough at this time.
   3. Unrepresented, Senior Management, and Department Heads are mandated to take 40
      hours of furlough, but may elect to have the deduction spread over 26 pay periods or
      taken when the unpaid leave is recorded on the timesheet.

Today, I am requesting your Board to ratify my decision to participate in the mandatory
furlough program or other unpaid leave program presented by the County of Fresno, with the
exception of a reduced work week or office closure, which I will bring back to your Board for
discussion at the time the County, finalizes their decision on this matter.

I am available to answer any questions.

Thank you.

                    1111 H Street, Fresno, CA 93721, Tel 559.457.0681 Fax 559.457.0318

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