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CITY OF SAN LEANDRO NOTES TO BASIC FINANCIAL STATEMENTS For The Year Ended June 30, 2015 NOTE 14 – PENSIONS PLANS For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. A. Plan Descriptions – All qualified permanent employees are eligible to participate in the City’s defined benefit pension plans: • Miscellaneous (all other) agent multiple-employer plan • Safety cost-sharing multiple-employer plan These plans are administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2015, are summarized as follows: Miscellaneous Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 55 52 Monthly benefits, as a % of eligible compensation 1.426% - 2.418% 1.000% - 2.500% Required employee contribution rates 7.946%6.750% Required employer contribution rates 24.998%24.998% Safety Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 3% @ 50 2.7 @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50 50 Monthly benefits, as a % of eligible compensation 3%2% - 2.7% Required employee contribution rates 9%14.778% Required employer contribution rates 29.556%29.556% 70