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by the employee purchasing any voluntary short-term disability insurance shall be made on an <br />after-tax basis. <br /> <br />Section 33. Retirement Plan - Three-tier System <br /> <br /> <br />The City shall, for full-time and qualifying part-time management staff, contribute to the California <br />Public Employees' Retirement System (CalPERS) each pay period a portion of the employees’ <br />contribution rate as established by law, equal to that percentage of the employees’ "compensation" as <br />that term is administered by the Board of Administration of CalPERS, for the purpose of computing <br />final compensation. Such contributions shall be reported to CalPERS as follows: <br /> <br />33.1 Tier One: Employees hired prior to May 6, 2010, the City shall maintain a contract with <br />CalPERS for the provision of a 2.5% @ 55 (highest 12 months) retirement benefit formula. <br />The City shall contribute eight percent (8%) of the employees’ compensation to CalPERS on <br />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 3% of the employee <br />contribution and the City shall contribute 5%. Effective July 1, 2014, employees shall <br />commence paying 6% of the employee contribution and the City shall contribute 2%. Effective <br />July 1, 2015, employees shall commence paying 8% of the employee contribution and the City <br />shall contribute 0%. Pursuant to IRS Code Section 414 (h) (2), these payments shall be made on <br />a pre-tax basis. <br /> <br />33.2 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 seven <br />percent (7%) of the employees’ compensation to CalPERS on behalf of these employees. Such <br />plan will also contain the three optional benefits listed above. <br /> <br />33.2.1 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 />33.2.1.1 The City shall contribute to the Public Employees' Retirement System (CalPERS) <br />each pay period a portion of a new employee’s contribution rate as established by law <br />according to the following schedule: year 1 – 2%; year 2 – 4%; year 3 – 6%. <br />Thereafter, the Employer-Paid Member Contribution (EPMC) shall be equal to the <br />respective formula (either seven (7) or eight (8) percent of the employee's <br />"compensation" for miscellaneous employees as that term is administered by the <br />Board of Administration of CalPERS. Prior CalPERS service time will be credited to <br />new employees to reduce the contribution rates specified above. Pursuant to IRS Code <br />Section 414 (h) (2), these payments shall be made on a pre-tax basis. <br /> <br />27