2024-001 - Changes to the City's Classification and Compensation Plan (EM)

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1. Pre -Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, this nine percent (9%) employee contribution will be implemented through payroll deduction on a pre-tax basis. I. 2.7% 57 Retirement Benefit for New Safety Members. The City agrees to provide Executive Management (EM) employees covered by this Resolution who were appointed to their classification on or after January 1, 2013, and who are defined as new members under the California Public Employees' Pension Reform Act (PEPRA) of 2013 (AB340), with the 2.7% @ 57 Service Retirement benefit. J. Pa ment of 2.7% at 57 Service Retirement Benefit. Executive Management (EM) employees defined in 6.1. (above) will contribute at least 50% of normal cost of the 2.7% at 57 retirement benefit. 1. Pre -Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City will make the above employee deductions pre-tax contributions. 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 CaIPERS 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 CaIPERS 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 CaIPERS 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