BY ALEX CANTATORE
Tim Kerr has filed a claim alleging the City of Turlock owes the former city manager almost $50,000 in unpaid retirement contributions.
The Turlock City Council terminated Kerr’s employment with the city during a regularly scheduled performance review on Jan. 6. Per Kerr’s employment contract with the city, the former city manager received a $181,284.53 lump sum severance package including nine months of salary, benefits, and payment for accrued sick leave and holidays.
Kerr’s claim, received by the city on April 7, contends that the severance package did not include full payment for all benefits, as required by his contract.
According to Kerr, City Attorney Phaedra Norton denied his request that Turlock contribute $37,337.19 to his California Public Employees’ Retirement System account, as he believes his contract stipulates. PERS does not allow retirement benefit contributions to be made on lump sum payments.
“Because the City Attorney required that I accept a lump sum severance payment upon which retirement benefit contributions could not be paid, prior to my termination date of February 13, 2009, I filed an application with PERS to personally contribute the $37,377.19 which the City was contractually obligated to pay,” wrote Kerr in his claim. “Accordingly, I am now seeking this amount from the City as a part of this claim.”
The grand total sought by Kerr, $49,583.78, includes tax on the $37,377.19, which Kerr would be required to pay if the city were to reimburse him.
Norton declined to comment on potential litigation, in keeping with city policy.
According to Kerr, his claim was denied by the City Council in closed session on April 28, just as all claims are denied as a matter of policy. Kerr has six months to decide if he will formally sue the city.
Norton stated that she is unsure if Kerr will proceed with a lawsuit, and that no formal complaint had been filed against the City of Turlock as of Monday. Submitting a claim form to the city is just the first step in the legal procedure, but is required before a lawsuit can be filed.
According to his claim submitted to the city, Kerr believes the text of his employment agreement, “should leave no doubt that I am entitled to receive, and the City is required to provide, the retirement benefit contribution as a benefit upon termination.”
To contact Alex Cantatore, e-mail acantatore@turlockjournal.com or call 634-9141 ext. 2005.
Originally published in the Turlock Journal 5/19/2009.
Retrieved from the Turlock Journal Web site.