55B - RESO FOR EMT CLASSIFICATION

Home Browse Search

K. Final Compensation for Pension Calculation. Final compensation for Classic Safety and Classic Miscellaneous Members will be based on the highest annual average compensation earnable during the 12 consecutive months immediately preceding the effective date of his or her retirement, or some other 12 consecutive month period designated by the member. Final compensation for Safety and Miscellaneous Members who are defined as New Members under PEPRA will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. L. Deferred Retirement for Classic Safety and Classic Miscellaneous Members as defined in Section D and H (above). The City will continue to make payments to CalPERS on behalf of each eligible affected employee in an amount necessary to pay one hundred percent (100%) of each employee's member contribution and report it to CalPERS as special compensation [Government Code §20636(C)(4)]. This contribution is known as Employer Paid Member Contribution (EPMC), which is equal to eight percent (8%) of reportable compensation for Classic Miscellaneous Members and nine percent (9%) for Classic Safety Members. Such payments will be credited to the individual employee's CalPERS account. Such payments are not an increase in base salary and no salary rate range applicable to any of the employees covered by this Resolution will be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and thus will not withhold federal or state income tax from said payments. The City previously received a ruling from the Internal Revenue Service confirming that such payments are deferred compensation and not ordinary income. In the event that the City receives a new ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments will discontinue and in place thereof the reportable compensation of each Classic Miscellaneous Member eligible for the 2.7% at 55 Benefits Formula will be increased by eight percent (8%) and each Classic Safety Member eligible for the 3% at 50 Benefits Formula will be increased by nine percent (9%). For the purpose of reporting an employee's compensation to CalPERS, the City will include these payments as if they were a part of the employee's reportable compensation. Section 7. Tuition Reimbursement. Executive Management (EM) employees are eligible to participate in the Training and Education Assistance Program provided for all regular, full-time employees of the City. Reimbursement will be based on the cost of tuition, required enrollment/registration fees, miscellaneous fees (health, parking, student union fees, etc.) and all required texts, eBooks and related material for each 55B-14