Reopening of Negotiations Related to DROP Sample Clauses

Reopening of Negotiations Related to DROP. During the term of this MOU, if any aspect of the DROP is found to be a mandatory subject of meet and confer by a final determination of a court of competent jurisdiction or by a PERB decision that has become final, the parties will reopen negotiations on those aspect(s) designated as mandatory subjects. The City has also indicated its intention to conduct a “cost neutrality” study related to DROP and has stated that it will negotiate with MEA on the impacts, if any, that result from the City’s defining DROP’s “cost neutrality.” In the event the City proposes to change DROP during the term of this MOU as a result of defining DROP’s “cost neutrality,” MEA reserves its right to meet and confer over any proposed change, and further, MEA reserves its right to challenge any proposed change as an unlawful impairment of a vested, Constitutionally-protected benefit, or on any other ground.

Reopening of Negotiations Related to DROP. The City contends that the Deferred Retirement Option Plan (DROP) is an employment benefit subject to modification through the meet and confer process. Despite MEA’s disagreement with this contention, the Parties agree that, during the term of this MOU, they will meet and confer over proposals to modify DROP to make DROP “cost free” to the City. The Parties acknowledge that the City’s proposals will modify DROP to make DROP “cost free” as defined by the City and may include any and all aspects of DROP, including but not limited to, all of the DROP alternative plan design proposals set forth in a study by Buck Consultants presented by the City to MEA on March 14, 2012, or any variations of the alternative proposals which changes numbers or percentages reflected in the Buck study. However, by agreeing to meet and confer regarding proposals to modify DROP, MEA is not waiving its right to challenge any proposed modification to DROP on the basis that it may impair a constitutionally protected, individually vested pension benefit, or on any other ground. MEA further reserves its right to argue, despite any contrary assertion by the City, that the current unmodified DROP is, in fact, “cost free” within the meaning of reasonable actuarial principles and appropriate margins of error. Moreover, in agreeing to meet and confer regarding proposals to modify DROP, neither Party is waiving its rights to make any legal arguments or pursue any legal action related to any proposed DROP modification. In the event the City and MEA reach agreement on any modifications to DROP, these modifications will become effective on the date agreed upon. In the event the Parties fail to reach an agreement, any impasse hearing related to DROP will be conducted in accordance with Council Policy 300- 06 on a date to be agreed upon by the Parties but in no event before January 1, 2013. However, any impasse hearing related to the Parties’ meet and confer over DROP, including the aspects of DROP described above, will be separate from and not combined with any issues remaining for impasse in connection with the Parties’ meet and confer process for a new MOU for Fiscal Year 2014.