Agmt 2013 San Leandro Management Organization SLMO

Home

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