Punta Gorda trustees direct staff to investigate whether comp‑time and buyouts are being treated as pensionable wages

A public commenter and police officer, Norm Narm, told trustees he found examples where the city withheld an 8% pension contribution from lump‑sum comp‑time, vacation buyouts and sick‑time cash‑outs but then those dollars were not included in the pensionable salary calculation used to determine benefits.

Trustees discussed federal distinctions between leave types and compensatory time, and asked staff to determine whether the city changed practice at some point. The board voted to direct staff (Blanca) to contact city finance, locate any written policy or ordinance language that governs treatment of these payouts, determine when any change occurred, and report back by email or at the next meeting; trustees noted the inquiry may incur staff time and take several weeks.

The board emphasized two distinct issues: (1) whether the city has been withholding pension contributions on payouts but not crediting those dollars toward members’ pensionable compensation, and (2) whether the ordinance or plan definition of salary requires inclusion of those payouts. Staff said, based on the board’s ordinance language, comp time appears to be pensionable but further review is needed. The board approved the motion to investigate by voice vote.