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RESOLUTION 96-95 <br />Page 8 <br /> <br /> Section 6. Employee Benefits. Officers and employees <br />regularly employed in the classes of employment listed in Section <br />3 of this Resolution shall receive as additional compensation the <br />following employee benefits: <br /> <br />6.1 Retirement Plan Contributions. <br /> <br /> A. General. The terms of the existing contract between <br />the City and the California Public Employees' Retirement System <br />(CalPERS) governing the retirement benefits for eligible affected <br />management employees are incorporated by reference herein. The <br />City shall continue to make contributions to CalPERS in accordance <br />with its contract with the system for affected employees covered by <br />said contract. <br /> <br /> B. Deferred Retirement. The City shall continue to make <br />payment to CalPERS on behalf of each eligible affected employee in <br />an amount required to pay one hundred percent (100%) of the <br />employee's individual retirement contribution. Such payments shall <br />be credited to the individual employee's CalPERS account. <br /> <br /> Such payments are not increases in base salary and no <br />Salary Rate Range applicable to any of the employees covered by <br />this Resolution shall be changed or deemed to have been changed by <br />reason thereof. As a result, the City will not treat these <br />payments as ordinary income and thus will not withhold federal or <br />state income tax from said payments. The City previously received <br />a ruling from the Internal Revenue Service confirming that such <br />payments are deferred compensation and not ordinary income. In the <br />event that the City receives a new ruling from the Internal Revenue <br />Service that such payments are ordinary income of the employees <br />instead of deferred compensation, the City's obligation to make <br />such payments shall discontinue and in place thereof the base <br />salary of each said employee shall forthwith be increased by seven <br />percent (7%), except for "safety-member" employees eligible for <br />coverage under the 2% at Age 50 Benefits Formula where the base <br />salary shall be increased by nine percent (9%). <br /> <br /> For the purpose of reporting an employee's <br />to CalPERS, the City shall include these payments as <br />a part of the employee's base salary. <br /> <br />compensation <br />if they were <br /> <br /> c. 2% at 55 CalPERS Retirement Benefit: Effective July <br />1, 1997, the City shall pay 2.266% of the cost of providing the 2% <br />at 55 CalPERS Retirement Benefit for unrepresented non-sworn <br />CalPERS "miscellaneous" Administrative Management employees. <br />Employees in classes designated non-sworn CalPERS "miscellaneous" <br />Administrative Management (AM) shall pay one percent of their <br />salary towards the total cost of 3.266% for the 2% at 55 CalPERS <br /> <br /> <br />