Laserfiche WebLink
<br />29 <br /> <br />Appendix “C” <br /> <br />Public Employees Pension Reform Act (PEPRA) <br /> <br />Pension Formulas <br />The applicable CalPERS retirement plan for City employees depends on date-of-hire and <br />previous California public agency employment. <br /> <br />• “Classic” PERS members, hired by the City prior to or after January 1, 2013, are <br />subject to a pension formula of 3% @ age 50. Highest 36-month option. Remarriage post- <br />survivor allowance. Military service and sick leave conversion options. <br />• Employees hired on or after January 1, 2013 with no* prior California public pension <br />or reciprocal plan employment, are subject to a pension formula of 2.7% at age 57. <br />Average salary over 36 months option. Additionally, all individual employee contributions <br />will be “at least 50 percent of the ‘normal cost rate.’”* <br /> <br />Employee Contributions <br />• “Classic” PERS members will contribute to CalPERS according to the following schedule: <br /> <br />Bill please insert year 1-2-3 schedule here <br /> <br />• “New” employees/members** hired on or after January 1, 2013 shall contribute 50% of <br />the Total Normal Cost of their pension formula (unless the bargaining group has negotiated a <br />higher employee contribution, in which case employees shall contribute the negotiated <br />amount). Employee contributions shall be at the negotiated amount until the expiration of <br />that MOU, at which point they shall become the highest of either 50% of the Total Normal <br />Cost or a new negotiated amount. <br />o In fiscal year 2012-13, the “new” member contribution rate in the Public Safety 2.7% at <br />age 57 plan is 12.25% of reportable compensation <br />o The Total Normal Cost is subject to annual adjustment as determined by CalPERS, and <br />will be communicated and implemented in accordance with CalPERS requirements <br />• Beginning in 2018, employees hired on or before December 31, 2012 may be subject to <br />imposed changes to contribution rates. <br /> <br />*As determined by CalPERS <br />** As defined in Government Code § 7522.04 (“New employee” means either: (1) an individual <br />employed for the first time by a public employer on or after January 1, 2013, and who was not <br />employed by any other public employer before that date; or (2) an individual hired by a public <br />employer on or after January 1, 2013, who was previously employed by a different public <br />employer but not subject to reciprocity. “New member” means (1) an individual who becomes a <br />member of any public retirement system for the first time after January 1, 2013; (2) an individual <br />who has previously been a member of a public retirement system but is not subject to reciprocity; <br />and (3) an individual who was an active member of a public retirement system but has had a <br />break of more than six months between past service with an old employer and returning to active <br />membership with a new employer.).