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<br />ARTICLE XIII <br />13.0 RETIREMENT <br />13.1 General. The terms of the existing contract between the City and California Public <br />Employees’ Retirement System (CalPERS) governing the City retirement benefits for <br />affected employees are incorporated by reference herein. The City shall continue to make <br />contributions to CalPERS in accordance with its contract with CalPERS for employees <br />covered by said contract as amended. <br />13.2 Deferred Retirement. The City will continue to make payment to CalPERS on behalf of <br />each employee, in an amount necessary to pay one hundred percent (100%) of their <br />individual retirement contribution which is currently equal to eight percent (8%) of base <br />salary, effective January 1, 2009. Such payments shall be credited to the individual <br />employee’s CalPERS account as Employer Paid Member Contribution (EPMC). <br />Such payments are not increases in base salary and no salary rate range applicable to any <br />of the employees covered by this MOU shall be changed or deemed to have been changed <br />by reason thereof. As a result, the City will not treat these payments as ordinary income <br />and, thus will not withhold Federal or State income tax from said payments. In the event <br />that the City receives a ruling from the Internal Revenue Service that such payments are <br />ordinary income of the employees instead of deferred compensation, the City’s obligation <br />to make such payments shall discontinue and in place thereof the base salary of each said <br />employee shall forthwith be increased by eight percent (8%). <br />For the purpose of reporting an employee’s compensation to CalPERS, the City shall <br />include these payments as if they were a part of the employee’s base salary. <br />13.3 Credit for Unused Sick Leave. <br />A.An employee covered by this MOU with less than ten (10) years of full-time City <br />service, can have up to a maximum of sixteen hundred (1,600) hours of unused <br />accumulated sick leave at the time of retirement converted to additional service <br />credit at the rate of four thousandths (0.004) years of service credit for each day of <br />unused sick leave (i.e., two hundred (200) days of sick leave equals eight tenths (.8) <br />additional years of service credit). The City must report only those days of unused <br />sick leave that were accrued by the employee during the normal course of <br />employment. This section applies to members whose effective date of retirement <br />is within one hundred and twenty (120) days or four (4) months of separation from <br />employment. <br />B.Employees with at least ten (10) years of full-time City service that retire from the <br />City of Santa Ana within one hundred twenty (120) days or four (4) months of <br />SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 44