Legacy Employees’ Pension Contribution. On July 1, 1994, the City increased the base salary of employees in the amount of nine percent (9%). Effective January 1, 2015, Legacy employees will contribute an additional one percent (1%) toward the City’s CalPERS employer contribution rate via automatic payroll deduction on a pre-tax basis. The City and Association agree that, effective 1st pay period after Council approval of this MOU, employees will pay an additional one percent (1%) to the City’s CalPERS employer contribution rate via automatic payroll deduction. Employees then assumed, and shall continue while the terms of this MOU are effective to assume, responsibility for payment of the normal employee retirement contribution to CalPERS. The City shall designate such payment as an Employer Pickup as defined under the provisions of Section 414(h)(2) of the Internal Revenue Code. The employee contribution shall be made through automatic payroll deductions.
Legacy Employees’ Pension Contribution. On July 1, 1994, the City increased the base salary of employees in the amount of nine percent (9%). Effective January 1, 2015, Legacy employees will contribute an additional one percent (1%) toward the City’s CalPERS employer contribution rate via automatic payroll deduction on a pre-tax basis. Employees then assumed, and shall continue while the terms of this MOU are effective to assume, responsibility for payment of the normal employee retirement contribution to CalPERS. The City shall designate such payment as an Employer Pickup as defined under the provisions of Section 414(h)(2) of the Internal Revenue Code. The employee contribution shall be made through automatic payroll deductions.
