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25.1 For part-time faculty who do not belong to a public retirement system, enrollment in one of the following retirement programs is mandatory.
25.1.1 STRS (State Teacher’s Retirement System) Defined Benefits plan: a state mandated program; or
25.1.2 STRS (State Teacher’s Retirement System) Cash Balance Plan: Effective spring 2007, District shall offer STRS Cash Balance Plan as a retirement option to part-time faculty. Eligibility shall be as determined by STRS.
The STRS Cash Balance Plan requires contributions from the part-time faculty member and from the District. The parties agree that the total contribution shall be 8% of the gross salary, which reflects the minimum contribution by STRS regulation. 4% is to be contributed by the part-time faculty member and 4% to be contributed by the District. The Cash Balance participants have an immediate vested right to their contribution and the employer’s contribution. The Cash Balance plan is portable between the different districts that offer it. Benefits shall be available to employee upon retirement, disability, or termination of employment; or
25.1.3 LARISA: The District sponsored alternative retirement plan. This plan requires a total contribution of 7.5 percent of gross salary: 3.75 percent from the District and 3.75 percent from the employee. Participants have an immediate vested right to their contribution and the employer’s contribution. Benefits shall be available to employee upon retirement, disability, or termination of employment.
25.2 Since a part-time faculty is subject to OBRA 90 (Omnibus Budget Reconciliation Act of 1990) upon employment, a new part-time faculty shall select among the retirement plan options prior to or upon the beginning date of employment.
25.2.1 After the initial selection, the part-time faculty may make a change to another available plan subject to existing statue and government regulations. The office of Human Resources will provide the part-time faculty member with information as to each of the retirement options.
25.3 Part-time faculty who have retired from STRS or PERS are not required by law to be enrolled in a retirement plan.
25.4 For part-time faculty who are members of STRS Defined Benefit plan; the District and the Faculty Association agree that in accordance with Education Code Section 22138.5(c) (5) for purpose of reporting STRS creditable service, the full-time equivalent (FTE) is defined as the number of days or hours of creditable service a person employed on a part-time basis would be required to perform in a school year if he or she was working full time in that position. Effective as of the date of ratification of the 2004-2007 faculty contract, the parties agree to the following full time equivalencies:
25.4.1 For teaching faculty: FTE = (540 / Load factor for assignment) hours
For non-teaching faculty: FTE = 1080 hours
25.4.2 For part-time faculty who are members of STRS DB plan;
Service credit is equal to: Actual Earning / Earnable Compensation
25.4.3 Earnable Compensation is equal to: Hourly rate x FTE (as defined above)
25.4.4 The hourly rate for part-time faculty teaching a load factor one class shall be calculated by dividing by 18 the amount in the appropriate cell of the faculty member’s group and step placement on the appendix B-2 salary schedule.
25.5 Retroactive service credit calculation: STRS Employer Information Circular, Volume 17, Issue 9 (November 13, 2001) instructs Districts regarding their obligation to comply with the new FTE calculation standards for part-time faculty and to submit adjustment for past miscalculation.
In accordance with STRS Employer Information Circular Volume 17, Issue 9, the District agrees to the following course of action:
25.5.1 All faculty members who have worked part-time between July 1, 1996 and the ratification date of the 2004-2007 faculty contract, including those who have retired since July 1, 1996, shall have their service credit calculations adjusted. All adjustments, recalculations, and other similar reports sent to the STRS shall be copied to faculty members.
25.5.2 The Faculty Association and the District shall establish an ad hoc task force to develop an implementation plan to ensure correct service credit reporting for part-time faculty. The implementation shall begin by January 1, 2007, and top priority will be given to those part-time faculty members who are age 62 or older or who have already retired. By July 2007, the District will report to the Faculty Association on the progress that has been made toward the goal of completing at least the top priority.
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