Common use of Safety Retirement Tier Elections- Employees Hired or Rehired Before January 1, 2013 Clause in Contracts

Safety Retirement Tier Elections- Employees Hired or Rehired Before January 1, 2013. A. If either the Internal Revenue Service issues guidance acceptable to both parties, or the County receives a Private Letter Ruling from the IRS, that protects the County and DSA members hired prior to January 1, 2013, from additional tax liability, DSA members will have the opportunity to elect new retirement tiers pursuant to Government Code section 31484.9. B. The following tiers are established: 1. In Safety Tier A, the retirement formula is “3 Percent at 50.” The cost of living adjustment (COLA) to the retirement allowance shall not exceed three (3) percent per year. The employee’s final compensation shall be based on a twelve (12) month salary average. 2. In Safety Tier C, the retirement formula is “3 Percent at 50.” The cost of living adjustment (COLA) to the retirement allowance shall not exceed two (2) percent per year. The employee’s final compensation shall be calculated based on a thirty-six (36) month salary average. 3. In the Safety PEPRA Tier, the retirement formula is established by the Public Employees Pension Reform Act (PEPRA) (Chapters 296, 297, Statutes of 2012). The retirement formula is PEPRA Safety Option Plan Two (2.7% at 57. The cost of living adjustment to the retirement allowance (COLA) shall not exceed two percent (2%) per year, and the cost of living adjustment will be banked. The employee’s final compensation will be based on his/her average annual compensation earnable during a consecutive thirty-six month period

Safety Retirement Tier Elections- Employees Hired or Rehired Before January 1, 2013. A. If either the Internal Revenue Service issues guidance acceptable to both parties, or the County receives a Private Letter Ruling from the IRS, that protects the County and DSA members hired prior to January 1, 2013, from additional tax liability, DSA members will have the opportunity to elect new retirement tiers pursuant to Government Code section 31484.9. B. The following tiers are established: 1. In Safety Tier A, the retirement formula is “3 Percent at 50.” The cost of living adjustment (COLA) to the retirement allowance shall not exceed three (3) percent per year. The employee’s final compensation shall be based on a twelve (12) month salary average. 2. In Safety Tier C, the retirement formula is “3 Percent at 50.” The cost of living adjustment (COLA) to the retirement allowance shall not exceed two (2) percent per year. The employee’s final compensation shall be calculated based on a thirty-six (36) month salary average. 3. In the Safety PEPRA Tier, the retirement formula is established by the Public Employees Pension Reform Act (PEPRA) (Chapters 296, 297, Statutes of 2012). The retirement formula is PEPRA Safety Option Plan Two (2.7% at 57). The cost of living adjustment to the retirement allowance (COLA) shall not exceed two percent (2%) per year, and the cost of living adjustment will be banked. The employee’s final compensation will be based on his/her average annual compensation earnable during a consecutive thirty-six month period.