Social Security Alternative Retirement Plan. The City has adopted an Alternate Retirement Plan (ARP) through the Public Agency Retirement Services (PARS) for those unit employees who are not members of the California Public Employees’ Retirement System (CalPERS) and who are otherwise subject to mandatory Social Security coverage requirements. All eligible unit employees (i.e., all unit employees who are not included in CalPERS) will be covered by the PARS 457 Alternative Plan. Employees will continue to participate in and will make contributions toward Medicare, as required by law. If an employee is enrolled in the ARP plan at the time of hire and subsequently works 1,000 hours in any fiscal year, he/she will automatically be enrolled in CalPERS and shall be removed from the ARP provided through PARS. The PARS 457 Alternative Plan provides that each pay period, 6.2% will be deducted from all eligible employees’ salaries and deposited into their PARS 457 FICA Plan Account. In addition, each pay period, the City will contribute 1.3% of each eligible employee's salary to their PARS 457 FICA Plan Account. The form of the ARP, including subsequent up-dates, changes or amendment, shall be as determined solely by the City, provided it meets the minimum benefit requirements for an alternate retirement system under the Internal Revenue Code. Any change in the substance of the plan must be made by agreement of the parties. Employees with 30 or more qualifying quarters in Social Security who wish to remain in Social Security for the purpose of obtaining the 40 qualifying quarters required to vest in Social Security may petition the Assistant Director of Administrative Services/Human ResourcesHuman Resources Director.
Social Security Alternative Retirement Plan. The City has adopted an Alternate Retirement Plan (ARP) for those unit employees who are not members of the California Public Employees’ Retirement System (CalPERS) and who are otherwise subject to mandatory Social Security coverage requirements. All eligible unit employees (i.e., all employees who are not included in CalPERS) will be covered by the457 Alternative Retirement Plan. Employees will continue to participate in and will make contributions toward Medicare, as required by law. If an employee is enrolled in the ARP plan at the time of hire and subsequently works 1,000 hours in any fiscal year, they will automatically be enrolled in CalPERS and shall be removed from the ARP. The457 Alternative Retirement Plan provides that each pay period, 6.2% will be deducted from all eligible employees’ salaries and deposited into their 457 FICA Plan Account. In addition, each pay period, the City will contribute 1.3% of each eligible employee's salary to their 457 FICA Plan Account. The form of the ARP, including subsequent up-dates, changes, or amendment, shall be as determined solely by the City provided it meets the minimum benefit requirements for an alternate retirement system under the Internal Revenue Code. Any change in the substance of the plan must be made by agreement of the parties. Employees with thirty (30) or more qualifying quarters in Social Security who wish to remain in Social Security for the purpose of obtaining the 40 qualifying quarters required to vest in Social Security may petition the Director of Human Resources.
