Pensionable Compensation Clause Samples
The Pensionable Compensation clause defines what types of employee earnings are considered when calculating pension benefits. Typically, this includes regular salary, wages, and sometimes bonuses or overtime, but may exclude items like expense reimbursements or certain allowances. By clearly specifying which forms of compensation count toward pension calculations, this clause ensures transparency and consistency in benefit determinations, preventing disputes and misunderstandings about retirement entitlements.
Pensionable Compensation. For employees who are not performing any of their prior duties in their new out-of-class assignment, their entire compensation will be reported as pensionable
Pensionable Compensation a. Pensionable compensation means the normal monthly rate of pay or base pay and
(a) Must be for normally required duties, (b) Must be historically consistent with prior payments for the job classification, and (c) Must be reported periodically as earned. Pensionable compensation is for services rendered on a full-time basis during normal working hours and will be paid based upon a publicly available pay schedule. [See 2 CCR 571, 2 CCR 571.1] Pensionable compensation also specifically excludes certain types of pay from being reported as pensionable compensation, including, bonuses, overtime, pay for additional services outside normal working hours, cash payouts for unused leave (vacation, annual, sick leave, CTO, etc.), and severance pay, among others.
b. Pensionable compensation may differ for CalPERS classic and new members.
c. The City will report pensionable pay in accordance with California Public Employees’ Retirement law and CalPERS requirements. Any changes in CalPERS practices or reporting requirements will result in an offer to meet and confer on the proposed changes or their impacts.
d. Changes in California Public Employees’ Retirement Law and changes in CalPERS interpretation of California retirement law shall preempt any MOU language in conflict with the law or CalPERS regulatory interpretations including but not limited to policy letters.
Pensionable Compensation. District/CCE Agreement For employees who are not performing any of their prior duties in their new out-of-class assignment, their entire compensation will be reported as pensionable compensation. 33 12.7.2 Expanded Higher Level Duties Outside of Current Classification
12.7.2.1 Duration Expanded higher level duty assignments shall be no longer than one (1) year in duration. With mutual consent between the District and the CCE the employee may work in the out of class assignment for one (1) additional year. Under no circumstances shall an expanded higher level duty assignment exceed two (2) years.