Laserfiche WebLink
40 <br />ARTICLE XIV <br />14.0 RETIREMENT <br />14.1 General. The terms of the existing contract between the City and California Public <br />Employees’ Retirement System (CalPERS) governing the City retirement benefits of <br />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 />14.2 Deferred Retirement. The City will continue to make payment to CalPERS on behalf of <br />each affected employee, in an amount necessary to pay one hundred percent (100%) of <br />their individual employee retirement contribution. Such payments shall be credited to the <br />individual employee’s CalPERS account. <br /> <br />Such payments are not increases in base salary and no salary rate ranges applicable to any <br />employees shall be changed or deemed to have been changed by reason thereof. As a <br />result, the City will not treat these payments as ordinary income and, thus will not <br />withhold Federal or State income tax from said payments. <br />For the purpose of reporting an employee’s compensation to CalPERS, the City shall <br />include these payments as if they were part of the employee’s base salary. <br /> <br />In the event that the City receives a ruling from the Internal Revenue Service that such <br />payments are ordinary income of the employees instead of deferred compensation, the <br />City’s obligation to make such payments shall discontinue and in place thereof the base <br />salary of each said employee shall forthwith be increased by nine percent (9%) for <br />“safety member” employees covered under the 3% at age 50 CalPERS formula and eight <br />percent (8%) for all “miscellaneous member” employees covered under the 2.7% at age <br />55 CalPERS formula. <br />14.3 1959 Survivor’s Benefit. The City shall provide CalPERS fourth level of 1959 <br />Survivor’s Benefits to all eligible employees. <br />14.4 Pre-Retirement Optional Settlement 2 Death Benefit. The City shall provide the Pre- <br />Retirement Optional Settlement 2 Death Benefit to all employees. <br />14.5 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members. The City <br />agrees to continue to provide Classic Miscellaneous employees who are defined as <br />Classic Members under the California Public Employees’ Pension Reform Act (PEPRA) <br />of 2013 with the 2.7% at 55 Service Retirement benefit. <br />Payment of 2.7% at 55 Service Retirement Benefit. Classic Miscellaneous employees <br />covered by this MOU shall pay eight percent (8%) of CalPERS reportable compensation