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HomeMy WebLinkAboutA- 5 Temporary Continuation of Military Benefits and Salary • 1r or, t f i m 4,700 AZUSA': INFORMATIONAL ITEM TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: VICTORIA CROSS, DIRECTOR OF HUMAN RESOURCES VIA: RICK COLE, CITY MANAGER 4. 4(< DATE: MARCH 17, 2003 SUBJECT: TEMPORARY CONTINUATION OF BENEFITS AND SALARY FOR EMPLOYEES CALLED TO MILITARY DUTY IN SUPPORT OF "OPERATION ENDURING FREEDOM" RECOMMENDATION There is no recommendation. This information is provided for city council consideration regarding the implementation of a Temporary Continuation of salary and benefits for city employees called to active duty in connection with the nation's response to the terrorist attack on the United States of America - "Operation Enduring Freedom". Depending on Council direction, staff may return with the appropriate resolutions to modify the existing military leave provisions. BACKGROUND In response to the events of September 11, 2001, the President of the United States began calling up military reservists in anticipation of national military action. Since this action has the possibility of affecting City of Azusa employees who also serve as military reserves with the United States armed forces, it was requested that the City review the policy, which provides continuation of benefits and salary for these individuals during their military assignment. Currently, the City of Azusa is in compliance with the Federal and State law regarding military leaves. While current law does guarantee 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 this potential loss of income, many agencies in the San Gabriel Valley and throughout Southern California are providing temporary additional paid leave and continuation of benefits for employees who have been recalled to active duty to defend the United States of America. Typically, the normal tour of duty to which a reservist may be ordered to serve, without congressional action, is six (6) months. As such, an employee called to active duty potentially results in a financial hardship for that individual and their family. To ensure Azusa employees are not adversely affected by being called to active duty to serve their country, it has been suggested that the City provide a temporary addition of military leave pay along with a continuation of benefits for employees who are recalled in response to the September Executive Order. / /nli This provision would allow employees who are recalled to be compensated by the City for the difference between the amount employee would receive from the regular city gross bi-weekly wage (not including overtime) and the amount the employee receives from their military service including all allowances. The continuation of salary and benefits to an employee would extend for an additional 150 days beyond the required 30 days under Federal and State law. This action in total may not exceed 180 days (a total of 6 months). Additionally, the employee's health, retirement and leave accruals would be continued for the employee and their family in the manner it would be provided if the employee was still actively employed by the City. Since this is a temporary modification to the City's military leave policy, the salary continuation would only be provided to those individuals who are called to active duty as a result of the President's Executive Order specific to the current military action. And as cited under the City's Military Leave Policy an employee must be in City employment for a period of one (1) year, upon being called for military duty. Lastly, as this is a temporary continuation, if there were other military actions in the future, additional City Council approval would be needed to extend this provision. FISCAL IMPACT It is estimated that the City may experience slight salary saving as the fiscal impact would be the cost of salary and benefit continuance minus the employee's military pay. The salary saving could then be utilize to fund or offset costs to underfill or temporarily fill the position.