Memorandum of Understanding

between the Local 1031, Council 59, American Federation of State, County, and Municipal Employees, AFL-CIO (Library) and the City of Rapid City to

reflect the changes in accordance with SDCL Chapter 3-13 A

of the South Dakota Retirement System

Special Pay Program Provisions

WHEREAS, the City of Rapid City and the Local 1031, Council 59, American Federation of State, County, and Municipal Employees, AFL-CIO (Library) have a collective bargaining agreement and Article 28 describes the specific participation of the employee in the Special Pay Program; and

WHEREAS, SDCL Chapter 3-13(A) has been amended effective July 1, 2006, and the above stated article shall be amended to read as follows:

The City of Rapid City participates in a Retirement Special Pay Plan, which provides a tax advantage and Social Security advantage when employees terminate their employment. The administration and participation in the Pay Plan is shall be in accordance with South Dakota Codified Law.

A special lump-sum payment will be deducted from the employee’s final paycheck and submitted the Special Pay Plan administrator, based on the following criteria.

1. Only employees age 55 or older qualify for such special pay transmitted to the special pay plan.
2. Only such special payments of $2,000 or more qualify to be transmitted to the special pay plan.
3. Special pay is defined as compensation other than regular salary or wages granted a regular benefited employee. Examples of such compensation include annual leave, sick leave payout, or unpaid holiday.

The City of Rapid City shall cease participation in the Retirement Special Pay Plan in accordance with SDCL.

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