Members with Affected PSC Contracts Who Entered DROP After Nov. 20, 2007 May Rescind Contracts

Date: Apr 14, 2011

 

In an April 11, 2011 letter, the City formally gave SDCERS the go-ahead to rescind any current DROP contracts of those members affected by the PSC litigation who entered DROP after November 20, 2007.  This will allow an Active DROP City employee with an affected PSC contract the option to work outside of their DROP period to rectify their PSC situation. (NOTE:  this applies ONLY to those City Members with affected PSC contracts).
(Click on the PDF of the letter from the City at the bottom of this page.)

Background
In a letter dated January 25, 2011, City Attorney Jan Goldsmith agreed with SDCERS that for Active City DROP Participants with PSC contracts affected by the PSC Litigation (“Affected Contract”), SDCERS has discretion, in limited circumstances constrained by case law, to allow the employee to rescind or reform his or her DROP contract.  But, SDCERS does not have the authority to allow these employees to work outside of their DROP period.  The City Attorney opined in his January 25 letter that the decision to allow an employee to work outside of his or her DROP period rests with the executive branch of the City government or, in other words, the Mayor’s office (Click on the PDF of the letter from the City Attorney at the bottom of this page.)
On February 3, 2011, SDCERS requested that Mayor Sanders advise SDCERS whether or not the City would allow these Active City DROP Participants to rescind or reform their DROP contracts and work outside their original DROP period.  SDCERS has now received the authorization to rescind such contracts at the Member’s request. (Click on the PDF of the letter from SDCERS to Mayor Sanders at the bottom of this page.)


What's Next For Members
Active DROP Participants who are impacted by the above decision will receive a letter from SDCERS in the next few weeks advising them of their correction options.  Because of the volume of PSC corrections, SDCERS asks that Members do not call SDCERS about this issue before receiving a letter unless the Member is approaching the end of his or her DROP Participation Period.  A City Member who is approaching the end of his or her DROP Participation Period should contact the SDCERS Call Center at 619.525.3600 to schedule a counseling appointment.
  Letter from City to SDCERS RE: Rescinding Current DROP Contracts - April 10, 2011
  Letter from SDCERS to Mayor Sanders - February 3, 2011
  Letter from City Attorney to SDCERS - January 25, 2011




Document Under

connect
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
  • News
website survey
    • Website Survey

00:00/00:21

00:00/00:07