- Employees Hired August 15, 2010 and Earlier. Employees hired as a full-time employee on or prior to August 15, 2010 will be covered under the 2.5% at 55 formula with the benefits specified below. Provision Government Code Section 2.5% at 55 formula – effective October 8, 2005 21354.4 One Year Final Compensation (Single Highest Year) 20042 Service Credit for Unused Sick Leave 20965 2% Cost-of-Living 21329 Post Retirement Survivor Allowance 21624, 21626, & 21635 Fourth Level of 1959 Survivor Benefit 21574 Pre-Retirement Optional Settlement 2 Death Benefit 21548 Public Service Credit for Periods of Layoff 21022 Public Service for Peace Corps or America Corps: VISTA Service 21023.5 Military Service Credit as Public Service 21024 Public Service Credit for Service Rendered to a Non-Profit Corporation 21026 Military Service Credit for Retired Persons 21027 Local System Service Credit included in Basic Death Benefit 21536 Cancellation of Payments for Service Credit Purchase upon Industrial Disability Retirement 21037 8% Employee Contribution. Employees agree to share the cost of their retirement benefit on a pre-tax basis by paying the full 8% employee contribution. It is the intent of the parties to accommodate employees’ desire that said sums be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution may be deducted on a pre-tax basis because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. The City shall not be responsible for any adverse tax treatment for the employees. The City has made no representation regarding such tax treatment and employees shall seek such advice from their personal tax advisors regarding such matters.
