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8.1 Tier One: For miscellaneous management employees hired prior to May 6, 2010, the City <br />shall maintain a contract with CalPERS for the provision of a 2.5% @ 55 (highest 12 <br />months) retirement benefit formula. The City shall contribute eight percent (8%) of the <br />employees’ compensation to CalPERS on behalf of these employees. <br /> <br />These plans shall contain the following options: <br /> <br /> Remarriage post-survivor allowance continuance <br /> Credit for unused sick leave option <br /> Military service credit option <br /> <br />Effective October 1, 2013, tier one employees shall commence paying 2% of the employee <br />contribution and the City shall contribute 6%. Effective July 1, 2014, employees shall <br />commence paying 5% of the employee contribution and the City shall contribute 3%. <br />Effective June 1, 2015, employees shall commence paying 8% of the employee contribution <br />and the City shall contribute 0%. Pursuant to IRS Code Section 414 (h) (2), these payments <br />shall be made on a pre-tax basis. <br /> <br />8.2 Tier Two: For “classic” CalPERS members hired on or after May 6, 2010, the City shall <br />maintain a contract with CalPERS for the provision of a 2% @ 55 (highest 36 months) <br />retirement benefit formula pursuant to CalPERS requirements. The City shall contribute <br />seven percent (7%) of the employees’ compensation to CalPERS on behalf of these <br />employees. Such plan will also contain the three optional benefits listed above. <br /> <br />8.2.1 Tier two employees shall contribute towards the employee’s retirement contribution <br />rate based on the greater of the amounts set forth below: <br /> <br />8.2.2 The City shall contribute to the Public Employees' Retirement System (CalPERS) each <br />pay period a portion of a new employee’s contribution rate as established by law according to <br />the following schedule: year 1 – 2%; year 2 – 4%; year 3 – 6%. Thereafter, the Employer- <br />Paid Member Contribution (EPMC) shall be equal to the respective formula (either seven (7) <br />or eight (8) percent of the employee's "compensation") for miscellaneous employees as that <br />term is administered by the Board of Administration of CalPERS. Prior CalPERS service <br />time will be credited to new employees to reduce the contribution rates specified above. <br />Pursuant to IRS Code Section 414 (h) (2), these payments shall be made on a pre-tax basis. <br /> <br />8.2.3 Effective October 1, 2013, employees shall commence paying 2% of the employee <br />contribution and the City shall contribute 5%. Effective July 1, 2014, employees shall <br />commence paying 5% of the employee contribution and the City shall contribute 2% <br />Effective June 1, 2015, employees shall commence paying 7% of the employee contribution <br />and the City shall contribute 0%. Pursuant to IRS Code Section 414 (h) (2), these payments <br />shall be made on a pre-tax basis. <br /> <br />8.3 Tier Three: For employees hired on or after January 1, 2013 and classified as “new” <br />members of CalPERS as defined by Public Employees Pension Reform Act (PEPRA), the <br />City shall maintain a contract with CalPERS for the provision of a 2% @ 62 (highest 36 <br />months) retirement benefit formula. Also pursuant to PEPRA, these employees are <br />responsible for paying one-half of the normal cost of this retirement plan. <br />8 <br />SLMO final 2013