Public Employees’ Pension Reform Act (PEPRA). Employees hired on or after January 1, 2013 who are new members to CalPERS shall receive the new miscellaneous retirement formula of 2 percent at 62 pension benefits in accordance with California Government Code section 7522.20.
Public Employees’ Pension Reform Act (PEPRA). On January 1, 2013 the Public Employees’ Pension Reform Act (PEPRA) went into effect. Included in this act is a provision that requires new members to pay at least 50% of normal cost and prohibits employers from paying this contribution on the employee’s behalf [Govt. Code Sect. 7522.30 (c)]. This measure defines a new member as: an individual who has never been a member of any public retirement system prior to January 1, 2013; an individual who moved between retirement systems with more than a 6-month break in service; and, an individual who moved between public employers within a retirement system after more than a 6-month break in service. Employee retirement contribution rates are established by the Stanislaus County Employee Retirement Association (StanCERA). In order to become compliant with PEPRA, all members of the bargaining unit will pay the full employee retirement contribution rate and the County will no longer pay the Employer Paid Member Contribution (EPMC). The specific employee retirement contribution will vary for each employee based on their individual retirement tier and age of entry into the retirement system. The current member contribution paid by the County for members of this bargaining unit is 8.5% of retirement contributable income. In exchange for the County eliminating the current EPMC, the County will increase base compensation by 1% (one percent) for each 1% (one percent) of the overall employee retirement contribution that will now be paid by each employee in the bargaining unit. For the members of this bargaining unit, the County will use the 8.5% retirement contribution rate to calculate the wage increase, for a total base wage adjustment of 8.5% (8.5% x 1). The parties recognize this wage adjustment and the elimination of the EPMC will have varying impacts on bargaining unit members. The elimination of EPMC and corresponding increase in base wages was effective on February 8, 2014.
