Common use of Second-Tier Retirement Plan Clause in Contracts

Second-Tier Retirement Plan. A. UAPD and the State agree to participate in the Second-Tier Retirement Plan as prescribed by law. UAPD and the State agree to permit State miscellaneous employees who are in Bargaining Unit 16 and members of the Public Employees' Retirement System to participate in the Second-Tier Retirement Plan effective January 1, 1986. It should also include industrial employees if they are amended into the Two-Tier Plan as prescribed by law. 1. The Second-Tier retirement plan is a noncontributory plan which provides a maximum benefit of 1-1/4 percent of final average salary for each year of credited service at age 65 with a 3 percent cost of living adjustment beginning the second calendar year following retirement. There is a 10-year vesting requirement. The specifics of the Second-Tier plan are outlined in AB 529 (Elder) (Government Code Chapter 674, 1984 Statutes) and 1985 cleanup legislation which is being sponsored by PERS. 2. An employee's election to participate in the Second-Tier is voluntary but once made, is irrevocable. 3. An employee who elects the Second-Tier for all past and future miscellaneous service will be refunded all of the employee's retirement contributions plus interest which are credited to him/her under the First-Tier miscellaneous retirement plan.

Second-Tier Retirement Plan. A. UAPD and the State agree to participate in the Second-Tier Retirement Plan as prescribed by law. UAPD and the State agree to permit State miscellaneous employees who are in Bargaining Unit 16 and members of the Public Employees' Retirement System to participate in the Second-Tier Retirement Plan effective January 1, 1986. It should also include industrial employees if they are amended into the Two-Tier Plan as prescribed by law. 1. The Second-Tier retirement plan is a noncontributory plan which provides a maximum benefit of 1-1/4 percent of final average salary for each year of credited service at age 65 with a 3 percent cost of living adjustment beginning the second calendar year following retirement. There is a 10-year vesting requirement. The specifics of the Second-Tier plan are outlined in AB 529 (Elder) (Government Code Chapter 674, 1984 Statutes) and 1985 cleanup legislation which is being sponsored by PERSlegislation. 2. An employee's election to participate in the Second-Tier is voluntary but once made, is irrevocable. 3. An employee who elects the Second-Tier for all past and future miscellaneous service will be refunded all of the employee's retirement contributions plus interest which are credited to him/her under the First-Tier miscellaneous retirement plan.