Common use of Use of Negotiated Employee Pension Contribution Increases Clause in Contracts

Use of Negotiated Employee Pension Contribution Increases. All monies resulting from the 3.0% negotiated employee pension contribution increase effective July 2, 2005 (i.e., City savings that result from substituting those increases for City “pick-up” of employee pension contributions), shall be designated exclusively for payment to support a leveraged mechanism to reduce the SDCERS unfunded actuarially accrued liability (“UAAL”), such as Pension Obligation Bonds, lease capitalization, or a similar mechanism selected by the City. If the City does not implement a leveraged mechanism to reduce the UAAL within the term of this MOU, then these monies shall be deposited into the SDCERS Employee Contribution Rate Reserve and used to defray the pension contribution obligation of employees in Local 145-represented bargaining units. The parties agree that Local 145 will not contend that the City has breached Article 23(2)(B) of the FY 06 MOU, provided that for FY 07, the City uses the negotiated employee pension contributions of Local 145 members from FY 06 and 07 to support a leveraged mechanism to reduce the SDCERS unfunded actuarially accrued liability (“UAAL”), such as Pension Obligation Bonds, lease capitalization, or a similar mechanism selected by the City. If the City does not implement a leveraged mechanism to reduce the UAAL within the term of this MOU, then these monies shall be deposited into the SDCERS Employee Contribution Rate Reserve and used to defray the pension contribution obligation of employees in Local 145-represented bargaining units.

Use of Negotiated Employee Pension Contribution Increases. (1) All monies resulting from the 3.0% 3 percent negotiated employee pension contribution increase effective July 2, 2005 (i.e., City savings that result from substituting those increases for City “pick-up” of employee pension contributions), shall be designated exclusively for payment to support a leveraged mechanism to reduce the SDCERS San Diego City Employees Retirement System (SDCERS) unfunded actuarially accrued liability (“UAAL”), such as Pension Obligation Bonds, lease capitalization, or a similar mechanism selected by the City. If the City does not implement a leveraged mechanism to reduce the UAAL within the term of this MOU, then these monies shall be deposited into the SDCERS Employee Contribution Rate Reserve and used to defray the pension contribution obligation of employees in Local 145-represented bargaining units. Bargaining Units. (2) The parties Parties agree that Local 145 will not contend that the City has breached Article 23(2)(B) of the FY 06 Fiscal Year 2006 MOU, provided that for FY 07Fiscal Year 2007, the City uses the negotiated employee pension contributions of Local 145 members from FY 06 Fiscal Year 2006 and 07 2007 to support a leveraged mechanism to reduce the SDCERS unfunded actuarially accrued liability (“UAAL”), such as Pension Obligation Bonds, lease capitalization, or a similar mechanism selected by the City. If the City does not implement a leveraged mechanism to reduce the UAAL within the term of this MOU, then these monies shall be deposited into the SDCERS Employee Contribution Rate Reserve and used to defray the pension contribution obligation of employees in Local 145-represented bargaining unitsBargaining Units.