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Department Heads shall receive management incentive pay at the rate of 120 hours per calendar <br />year; such amount shall be paid equally at each pay period. Such pay is given in recognition of the <br />unique nature of their position (e.g. program direction, policy determination). <br /> <br />Department Heads shall be subject to an annual performance review by the City Manager. The City <br />Manager, in his sole discretion, may award additional pay based on performance, pursuant to the <br />provisions of the Personnel Rules or other granted authority. <br /> <br />Section 7.0 Deferred Compensation <br /> <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 8.0 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 9.0 Retirement– Three-tier System <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" <br />as that term is administered by the Board of Administration of CalPERS, for the purpose of <br />computing final compensation. Such contributions shall be reported to CalPERS as follows: <br /> <br />9.1 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. <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 />Employees shall pay the 8% of the employee contribution. Pursuant to IRS Code Section 414 (h) <br />(2), these payments shall be made on a pre-tax basis.9.2 Tier Two: For “classic” <br />CalPERS members hired on or after May 6, 2010, the City shall maintain a contract with <br />CalPERS for the provision of a 2% @ 55 (highest 36 months) retirement benefit formula <br />pursuant to CalPERS requirements. Such plan will also contain the three optional benefits <br />listed above. <br /> <br />Employees shall pay 7% of the employee contribution. Pursuant to IRS Code Section 414 (h) <br />(2), these payments shall be made on a pre-tax basis. <br /> <br />10 <br />SLMO draft