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CalPERS Contract Amendment <br />July 7, 2008 <br />Page Two <br />FISCAL IMPACT <br />On July 1, 2007, all miscellaneous employees began contributing 20 of their <br />salary toward the future employer cost of the 2.7% @ 55 retirement benefit. <br />On July 1, 2008, miscellaneous employees will contribute an additional 2% <br />of their salary, or 4o towards the future employer cost. On July 1, 2009, <br />miscellaneous employees will contribute an additional 2.30 of their salary <br />for a total of 6.3o toward the increased employer cost. <br />The most recent Ca1PERS actuarial valuation estimates that the combined <br />market actuarial value (i.e., cash value) of the City's current assets on <br />deposit for both Safety and Miscellaneous employees in the retirement <br />program totals $975,250,879. Of this amount, $393,599,349 is on deposit <br />for Miscellaneous employees in the retirement program, which fully funds <br />the cost of all current benefits at 101.70. The cost for providing this <br />benefit will be $48,980,129 and the change in the accrued liability will be <br />$32,818,635. The cost for this benefit is the cost for all employees and <br />their spouses currently enrolled in the CalPERS retirement program until <br />the time they die. The accrued liability is that portion of the total cost <br />that pertains to the employees' past service. These costs are amortized <br />over a 20-year period. <br />Based on the lifetime costs stated <br />begin contributing $4,246,478 and the <br />this benefit during the calendar year <br />Enrique J lva <br />Executiv irec <br />Personne Services <br />above, miscellaneous employees will <br />City will contribute $869,760 toward <br />2009. <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />~ ~.A1~~ ~ ~ ~f~~~, `{.ten <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services <br />55E-2 <br />