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<br />The City shall maintain in effect the deferred compensation program as described in the San <br />Leandro Administrative Code for the term of this Agreement. <br /> <br />Section 9.0 Employee Wellness <br /> <br />For the period of this Memorandum of Understanding, the concept of employee wellness will <br />continue to be addressed by the City through, but not limited to, executive medical examinations, <br />workshops around health and wellness. The City agrees to continue to provide to employees an <br />Employee Assistance Program as described in the City of San Leandro Personnel Manual, <br />Administrative Procedure 1570. It is agreed that such program shall not be an automatic substitution <br />for appropriate disciplinary action when such action is appropriate. <br /> <br />Section 10.0 Retirement– Two-tier System <br /> <br />The City shall continue to contract with the California Public Employees’ Retirement System <br />(CalPERS) to provide retirement benefit programs for the term of this Memorandum of <br />Understanding. <br /> <br />10.1 Tier One: For employees hired by the City into the Association prior to January 1, 2013, or <br />for “classic” members of CalPERS hired after January 1, 2013, the City’s contract with <br />CalPERS provides the 3% @ age 50 retirement formula, fourth level 1959 Survivors Benefit <br />and the Military Service credit, with 12 months highest final compensation. <br /> <br /> Tier one employees shall pay 9% of the employee contribution Pursuant to IRS Code Section <br />414 (h) (2), these payments shall be made on a pre-tax basis. <br /> <br />10.2 Tier Two: For employees hired on or after January 1, 2013 and classified as “new” members <br />of CalPERS as defined by Public Employees Pension Reform Act (PEPRA), the City shall <br />maintain a contract with CalPERS for the provision of a 2.7% @ 57 (highest 36 months) <br />retirement benefit formula. Also pursuant to PEPRA, these employees are responsible for <br />paying one-half of the normal cost of this retirement plan. <br /> <br />Section 11.0 Compensation <br /> <br />Salary for each classification varies from step 1 to step 5 as shown in the salary schedules attached <br />as Appendix A of this agreement. New hires and promotions may be placed at the step closest to a <br />minimum five percent (5%) base salary increase, or any step, subject to the City Manager’s final <br />approval. Employees may be advanced from their current step to the next higher step after each <br />year of satisfactory performance. <br /> <br />The salary schedules reflect wage adjustments as follows: <br /> <br />A three (3%) percent across the salary schedule adjustment effective January 1, 2016. <br /> <br />A three (3%) percent across the salary schedule adjustment effective January 1, 2017. <br /> <br />A three (3%) percent across the salary schedule adjustment effective January 1, 2018. <br /> <br />SLPMA 9