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