Laserfiche WebLink
E. Effective October 1, 2009, the City shall contribute an additional three and <br />one-half tenths of one percent (.35~e) for a total City contribution of one <br />and one quarter percent (1.259'0) of the bargaining unit's salary base, plus <br />pay additives, for the purpose specified herein. This one and one quarter <br />percent (1.250) may be applied, instead, to the Retirement Health Savings <br />Program, as defined in Article XIV, Section 14.9, if such a program is <br />implemented at a later date. <br />AMENDED ARTICLE XIV (new language in bold) <br />14,2 Deferred Retirement. The City will continue to make payment to CaIPERS on behalf <br />of each affected employee, in an amount necessary to pay one hundred percent <br />(100%) of his or her individual retirement contribution. Such payments shall be <br />credited to the individual employee's CaIPERS account. <br />A. With respect to "safety-member" employees, the City shall pay an amount <br />equal to nine-ninths (9/9ths) of his or her individual employee retirement <br />contribution. <br />B. With respect to "miscellaneous-member" employees covered by this <br />Agreement, the City shall pay an amount equal to eight-eighths (8/8ths) of <br />his or her individual employee retirement contribution. <br />Such payments are not increases in base salary and no salary rate ranges applicable <br />to any of the employees covered by this Agreement shall be changed or deemed to <br />have been changed by reason thereof. As a result, the City will not treat these <br />payments as ordinary income and, thus will not withhold Federal or State income tax <br />from said payments. The City has received an opinion or ruling from the Internal <br />Revenue Service confirming that these payments are deferred compensation, and <br />not ordinary income. <br />For the purpose of reporting nn employee's compensation to CaIPERS, the City shall <br />include these payments ns if they were part of the employees base salary. <br />In the event that the City receives a ruling from the Internal Revenue Service that <br />such payments are ordinary income of the employees instead of deferred <br />compensation, the City's obligation to make such payments shall discontinue and in <br />place thereof the base salary of each said employee shall forthwith be increased by <br />eighteen (18) salary rate ranges (9%) for "safety member" employees covered under <br />the 3% at age 50 CaIPERS formula and fourteen (14) salary rate ranges (7%) for all <br />