Item 23 - Resolution Amending the Classification and Compensation Plan for Classifications

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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 course. Maximum tuition reimbursement will be paid in the highest amount as available to other represented employees. Section 8. Retirement Health Savings (RHS) Plan. A. Employees participate in the “Vantage Care” Retirement Health Savings Plan (RHS), which designated ICMA-RC as the administrator of the plan. The City shall make contributions into the individual accounts of Executive Management (EM) employees as provided to the highest represented non-sworn employees’ unit. 1. Executive Management (EM) employees will contribute one and one- quarter percent (1.25%) of base pay into his/her individual RHS account each pay period. 2. Executive Management (EM) employees shall have the option to amend the current Executive Management plan design by mutual agreement of the majority within in the City’s agreement with ICMA-RC. Section 9. Auto Allowance. With the exception of the Police Chief who receives a City vehicle, the City will contribute five hundred dollars ($500) per month to each Executive Management (EM) employee to offset reasonable and necessary expenses for the operation, maintenance and insuring of an automobile. In lieu of receiving five hundred dollars ($500) per month, the employee may request and be provided with an optional vehicle. Section 10. Deferred Compensation. The City has established and maintains a deferred compensation plan pursuant to the provisions of Section 457 (b) of the Internal Revenue Code. Executive Management (EM) employees covered under this resolution, at his or her sole discretion, may defer to have deposited into the City’s 457(b) plan a portion of his or her compensation up to the maximum amount permitted by law. As permissible by law if the City is desirous of establishing a 401(a) deferred compensation plan at a future date, Executive Management (EM) employees covered under this resolution, at his or her sole discretion, may elect to participate into said 401(a)