Common use of Employees Hired On or After January 1, 2013 Clause in Contracts

Employees Hired On or After January 1, 2013. Effective January 1, 2013, new members to CalPERS or an agency with CalPERS’ reciprocity will be subject to the provisions of the Public Employee’s Pension Reform Act of 2013 (PEPRA) and will receive the 2% @ 62 benefit formula. This plan provides 2 percent of pay at age 62 for each year of service credited with the City. Employees pay 50 percent of the normal cost rate on a pretax basis to be calculated by CalPERS. In addition, new members must be at least 52 years of age with 5 or more years of CalPERS-credited service in order to retire with a normal service retirement through the CalPERS system, and their retirement allowance will be based on the average of their last 3 years of compensation prior to retirement. Employees who are current members of CalPERS or an agency with CalPERS’ reciprocity, or who have less than a 6-month break in service between employment in a CalPERS (or reciprocal) agency, or who have previously been employed by the City of Montclair will be enrolled in the 2% @ 60 formula. Employees under this formula pay 6 percent of the member’s required contribution on a pretax basis, as in item 1.b. above.

Employees Hired On or After January 1, 2013. Effective January 1, 2013, new members to CalPERS or an agency with CalPERS’ reciprocity will be subject to the provisions of the Public Employee’s Pension Reform Act of 2013 (PEPRA) and will receive the 22.7% @ 62 57 benefit formula. This plan provides 2 2.7 percent of pay at age 62 57 for each year of service credited with the City. Employees pay 50 percent of the normal cost rate on a pretax basis to be calculated by CalPERS. In addition, new members must be at least 52 50 years of age with 5 or more years of CalPERS-credited service in order to retire with a normal service retirement through the CalPERS system, and their retirement allowance will be based on the average of their last 3 years of compensation prior to retirement. Employees who are current members of CalPERS or an agency with CalPERS’ reciprocity, or who have less than a 6-month break in service between employment in a CalPERS (or reciprocal) agency, or who have previously been employed by the City of Montclair will be enrolled in the 23% @ 60 55 formula. Employees under this formula pay 6 percent of the member’s required contribution on a pretax basis, as in item 1.bitems 2.a. above.and