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24.11 The parties agree that during the term of this agreement, they will jointly explore various <br />instruments enabling employee savings for retiree medical costs and related purposes. <br /> Section 25. Retirement Plan – Two-tier System <br />25.1 The City shall continue to contract with the California Public Employees’ Retirement <br />System (CalPERS) to provide retirement benefit programs for the term of this Memorandum of Understanding. <br /> 25.2 Tier One: For employees hired by the City into the SLPOA prior to January 1, 2013, or 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 <br />Benefit and the Military Service credit, with 12 months final compensation. <br /> <br />• Effective July 1, 2017, employees will pay an additional one percent (1%) towards the <br />employer’s pension contribution rate for a total employee contribution of 10%. The <br />additional contribution will be offset by a 1% salary increase. <br />• Effective July 1, 2018, employees will pay an additional one percent (1%) towards the <br />employer’s pension contribution rate for a total employee contribution of 11%. The <br />additional contribution will be offset by a 1% salary increase. <br />• Effective July 1, 2019, employees will pay an additional one percent (1%) towards the <br />employer’s pension contribution rate for a total employee contribution of 12%. The <br />additional contribution will be offset by a 1% salary increase. <br /> Pursuant to IRS Code Section 414 (h) (2), these payments shall be made on a pre-tax <br />basis. The parties mutually recognize and acknowledge that the cost-sharing provisions <br />provided herein satisfy the cost-sharing terms set forth in Government Code section <br />20516.5. These additional employee pension contributions will be applied to the <br />employee account with CalPERS pursuant to a contract amendment. <br />25.3 Tier Two: For employees hired on or after January 1, 2013 and classified as “new” <br />members of CalPERS as defined by Public Employee Pension Reform Act (PEPRA), the <br />City shall maintain a contract with CalPERS for the provision of a 2.7% @ 57 (highest 36 <br />months) retirement benefit formula. Also pursuant to PEPRA, these employees are responsible for paying one-half of the normal cost of this retirement plan and subject to the <br />reportable annual compensation limit per Government Code Section 7522.10. <br /> <br />Section 26. Safety <br /> The City shall conform with applicable safety regulations provided by State law to ensure the <br />employee reasonable safe working conditions. The Association agrees to encourage its members <br />to conduct themselves and use their equipment in a safe manner, to promptly report unsafe <br />conditions and equipment and to abide by the guidelines of the applicable City of San Leandro <br />General Safety Rules and applicable departmental rules. In the event an employee leaves the Police Department, the employee shall return all City provided safety equipment to the <br />Department.