MEMORANDUM OF UNDERSTANDING REGARDING SERP

December 30, 2009

The Pajaro Valley Unified School District (District) and the Pajaro Valley Federation of Teachers (PVFT) agree that it is in the best interest of the District and the PVFT bargaining unit to offer a Supplemental Employee Retirement Plan (SERP) in order to encourage employees contemplating retirement to retire by the end of the 2009-2010 school year. The SERP is intended help to provide budgetary relief to the District and to reduce the number of layoffs that may be required for 2010-2011. 

A SERP Oversight Committee (SOC) will be formed with 2 labor and 2 management representatives of the respective negotiations team. The SOC shall meet in early mMay, 2010 to evaluate: the number of retirees, the projected savings and vacant positions due to retirements. They will meet again in early September, 2010 to determine the actual savings.

The Plan offered by the District is described in the Resolution adopted by the Board of Trustees on December 9, 2009, attached hereto. The District and PVFT further agree to the following:

1) Participants must be tenured, certificated non-management employees.

2) With regard to Adult Education teachers, the SERP will only be implemented for those employees if the District will break even or realize a savings to the Adult Education budget based on the actual Adult Education teachers who wish to participate. If the District does not break even or realize a savings, the Adult Education teachers may rescind their retirements.

3) Participants must be 55 years of age by August 1, 2010, and have 10 years of continuous PVUSD service as of the effective date of the retirement.

4) Participants must retire from the District with an effective date between the date the resolution was approved by the Governing Board and June 30, 2010.

5) Participants must qualify to retire from STRS (or PERS, if the certificated employee is a PERS member).

6) Individuals previously retired from STRS are not eligible.

7) There must be a minimum of 70 participants in order for the plan to be implemented.

8) No individual may take more than one SERP from the District.

9) Participants must submit an irrevocable retirement letter no later than March 1, 2010, and meet the eligibility requirements noted above.

10) In the event that an employee submits a resignation contingent upon implementation of the SERP and the SERP is not implemented, the employee may rescind his/her resignation by submitting a written letter of rescission no later than May 21, 2010.

Date: January 15, 2010