Common use of Public Employees Retirement System (CalPERS) Clause in Contracts

Public Employees Retirement System (CalPERS). All employees covered under this Memorandum of Understanding shall be members of the State of California Public Employees' Retirement System (CalPERS) and are subject to all applicable provisions of the City's contract with CalPERS, as amended. Classic Employees - The CalPERS plan in effect for “Classic” members is known as the 2% @ 55 formula for Local Miscellaneous Members based on the three highest consecutive years. Effective the first full payroll period beginning on or after July 1, 2016, employees hired as “Classic” Miscellaneous employees under the CalPERS definition shall pay the entire seven percent (7%) CalPERS-mandated employee retirement contribution. Effective the first full payroll period beginning on or after July 1, 2017 Classic employees shall pay an additional one percent (1%) cost sharing contribution pursuant to Government Code Section 20516 for a total CalPERS employee contribution of eight percent (8%). This cost sharing contribution shall be treated as normal member CalPERS contributions to the extent provided by statute. New Employees or New Members - Pursuant to California Public Employees’ Pension Reform Act of 2013 (PEPRA), “new employees” and/or “new members” as those terms are defined in Government Code Section 7522.04 hired on or after January 1, 2013, are enrolled in the 2% at 62 retirement formula for Local Miscellaneous Members (Government Code Section 7522.20) based on the three highest consecutive years. Pursuant to PEPRA, new employees or new members hired on or after January 1, 2013, shall pay at least 50% of the normal cost of pension as is determined each year by CalPERS to be the employee contribution rate. Implementation of the above funding of the employee CalPERS contributions shall be accomplished by means of each affected employee incurring a payroll deduction each payroll period in the above amounts. Said payroll deductions shall be on a pre-tax basis pursuant to IRS Code Section 414 (h) (2). 1959 Survivor Benefit The CalPERS Retirement Plan has been amended to include the Fourth Level 1959 Survivor Benefit. The employee shall pay 100% of all monthly costs for this benefit, in addition to the $2.00 monthly cost for the basic level 1959 Survivor Benefit.

Public Employees Retirement System (CalPERS). All employees covered under this Memorandum of Understanding shall be members of the State of California Public Employees' Retirement System (CalPERS) and are subject to all applicable provisions of the City's contract with CalPERS, as amended. Classic Employees - The CalPERS plan in effect for non-safety “Classic” members is known as the 2% @ 55 formula for Local Miscellaneous Members based on the three highest consecutive years. Effective the first full payroll period beginning on or after July 1, 2016, employees hired as “Classic” Miscellaneous employees under the CalPERS definition shall pay the entire seven percent (7%) % CalPERS-mandated employee retirement contribution. Effective the first full payroll period beginning on or after July 1, 2017 Classic employees shall pay an additional one percent (1%) % cost sharing contribution pursuant to Government Code Section 20516 for a total CalPERS employee contribution of eight percent (8%). This cost sharing contribution shall be treated as normal member CalPERS contributions to the extent provided by statute. New Employees or New Members - Pursuant to California Public Employees’ Pension Reform Act of 2013 (PEPRA), “new employees” and/or “new members” as those terms are defined in Government Code Section 7522.04 hired on or after January 1, 2013, are enrolled in the 2% at 62 retirement formula for Local Miscellaneous Members (Government Code Section 7522.20) based on the three highest consecutive years. Pursuant to PEPRA, new employees or new members hired on or after January 1, 2013, shall pay at least 50% of the total normal cost of pension as is determined each year by CalPERS to be the employee contribution rate. Effective the first full payroll period beginning on or after July 1, 2017 new employees or new members shall pay an additional 1% contribution pursuant to Government Code Section 20516. This cost sharing contribution shall be treated as normal member CalPERS contributions to the extent provided by statute. (PEPRA normal cost rate for FY 2018/2019 is 5.75% resulting in a total CalPERS contribution of 6.75% and PEPRA normal cost rate for FY 2019/2020 is 6.25% resulting in a total CalPERS contribution of 7.25%). Implementation of the above funding of the employee CalPERS contributions shall be accomplished by means of each affected employee incurring a payroll deduction each payroll period in the above amounts. Said payroll deductions shall be on a pre-tax basis pursuant to IRS Code Section 414 (h) (2). 1959 Survivor Benefit Survivors Benefit. The CalPERS Retirement Plan has been amended to include the Fourth Level 1959 Survivor Survivors Benefit. The employee shall pay 100% of all monthly costs for of this benefit, in addition to the $2.00 monthly cost for the basic level 1959 Survivor Benefit. City has amended its contract with CalPERS to provide Government Code Section 21024, Military Service Credit.