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to CalPERS, the City will convert the incentive payment for eligible employees to a meritorious step on the salary range as set forth in section 4.8C (7) below. 3. Any Association employee that is deemed to be a "New CAPERS Member" is not eligible to have the incentive payment reported to CalPERS as special compensation. See, Government Code section 7522.34(c) and PERS circular 200-064-17 dated December 6, 2017, a bonus is not "PERSable" compensation for new members. 4. Any Association employee that is off on IOD or other leave of absence whose Performance Appraisal date occurs while off work will have their appraisal date adjusted when returning to work for the time not worked. The employee will not be eligible for the incentive bonus payment until completing the required time in their regular position necessary to be evaluated per current departmental policy. 5. Performance based monetary incentive payment amounts for Association personnel shall be recommended by the employee's Supervisor and requires the approval of both the Police Chief and City Manager. 6. The Police Chief shall be responsible for the development and administration of detailed administrative procedures and guidelines for the consistent and effective application of the Association performance appraisal evaluation criteria. Such procedures and guidelines shall define how performance objectives, measure and standards are developed; when and how performance reviews are to be carried out; how overall performance ratings will be determined; and how performance based monetary incentive payment options are to be exercised. If it is determined by PERS that the "Bonus" is not eligible to be included as PERSable compensation, the City shall convert the bonus to two (2) additional merit based steps at increments of 2.5% for the last year that the employee earned the Bonus. The Association understands and agrees that these steps would be merit based and employees must maintain a Significantly Exceeds Rating to receive or maintain the 5% or Exceeds expectations rating to receive or maintain the 2.5%. Employees who do not receive Significantly Exceeds rating or Exceeds Expectations rating will be returned to Step 4 of the Association salary schedule. 4.9 Promotional Salary Advancement. When an employee is promoted to aposition in ahigher classification from a position in a lower classification, he or she shall be reassigned to the 11 #11140v2 55F-19