Reso 2022-009 Approving Memorandum of Understanding City of SL & SL Management Organization 1-1-22 to 12-31-22

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the employees' contribution rate as established by law, equal to that percentage of the employees' "compensation" as that term is administered by the Board of Administration of CalPERS, for the purpose of computing final compensation. Such contributions shall be reported to CalPERS as follows: 9.1 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. These plans shall contain the following options: Remarriage post -survivor allowance continuance Credit for unused sick leave option Military service credit option Employees shall pay the 8% of the employee contribution. Pursuant to IRS Code Section 414 (h) (2), these payments shall be made on a pre-tax basis. 9.2 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% @ 55 (highest 36 months) retirement benefit formula pursuant to CaIPERS requirements. Such plan will also contain the three optional benefits listed above. Employees shall pay 7% of the employee contribution. Pursuant to IRS Code Section 414 (h) (2), these payments shall be made on a pre-tax basis. 9.3 Tier Three: For employees hired on or after January 1, 2013 and classified as "new" members of CalPERS as defined by Public Employees' Pension Reform Act (PEPRA), the City shall maintain a contract with CalPERS 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. Section 10.0 Compensation Salary for each classification varies from step 1 to step 5 as shown in Appendix A, salary schedule. New hires and promotions may be placed at the step closest to a minimum five percent (5%) base salary increase, or any step, subject to the City Manager's final approval. Employees may be advanced from their current step to the next higher step after each year of satisfactory performance. The appendix reflects wage adjustments as follows: A six (6%) percent across the salary increase effective January 1, 2022. Section 11.0 Application of Pay Rates 11 SLMO 2022 Memorandum of Understanding