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1. Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal <br /> Revenue Service regulations, the City will make the above employee deductions pre-tax <br /> contributions. <br /> G. Final Compensation for Pension Calculation. Final compensation for Classic <br /> Miscellaneous Members will be based on the highest annual average compensation <br /> earnable during the 12 consecutive months immediately preceding the effective date of <br /> their retirement, or some other 12 consecutive month period designated by the member. <br /> Final compensation Miscellaneous Members who are defined as New Members under <br /> PEPRA will be based on the highest annual average compensation earnable during the <br /> 36 consecutive months immediately preceding the effective date of their retirement, or <br /> some other 36 consecutive month period designated by the member. <br /> H. Deferred Retirement for Classic Miscellaneous Members as defined in Section <br /> D (above). The City will continue to make payments to CalPERS on behalf of each <br /> eligible affected employee in an amount necessary to pay one hundred percent (100%) <br /> of each employee's member contribution and report it to CalPERS as special <br /> compensation [Government Code §20636(C)(4)]. This contribution is known as <br /> Employer Paid Member Contribution (EPMC), which is equal to eight percent (8%) of <br /> reportable compensation for Classic Miscellaneous Members. Such payments will be <br /> credited to the individual employee's CalPERS account. <br /> Such payments are not an increase in base salary and no salary rate range applicable <br /> to any of the employees covered by this Resolution will be changed or deemed to have <br /> been changed by reason thereof. As a result, the City will not treat these payments as <br /> ordinary income and thus will not withhold federal or state income tax from said <br /> payments. The City previously received a ruling from the Internal Revenue Service <br /> confirming that such payments are deferred compensation and not ordinary income. In <br /> the event that the City receives a new 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 will discontinue and in place <br /> thereof the reportable compensation of each Classic Miscellaneous Member eligible for <br /> the 2.7% at 55 Benefits Formula will be increased by eight percent (8%). <br /> For the purpose of reporting an employee's compensation to CalPERS, the City will <br /> include these payments as if they were a part of the employee's reportable <br /> compensation. <br /> Section 8. Tuition Reimbursement <br /> Unrepresented Confidential Management employees are eligible to participate in the <br /> Training and Education Assistance Program provided for all regular, full-time employees <br /> of the City. Reimbursement will be based on the cost of tuition, required <br /> enrollment/registration fees, miscellaneous fees (health, parking, student union fees, <br />