55A - EM EMPLOYEES - Laserfiche WebLink

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A. General. The terms of the existing contracts between the City and the California Public Employees' Retirement System (CaIPERS) governing the City retirement benefits for eligible affected management employees are incorporated by reference herein. The City shall continue to make contributions to CaIPERS in accordance with its contracts with CaIPERS for eligible affected employees covered by said contract as amended. B. Deferred Retirement. The City will continue to make payment to CaIPERS on behalf of each eligible affected employee in an amount required to pay one hundred percent (100%) of the employee's individual retirement contribution which is equal to eight percent (8%) for CaIPERS miscellaneous members and equal to nine percent (9%) for CaIPERS safety members. Such payments shall be credited to the individual employee's PERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this Resolution shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and thus will not withhold federal or state income tax from said payments. The City previously received a ruling from the Internal Revenue Service confirming that such payments are deferred compensation and not ordinary income. In the event that the City 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 shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by eight percent (8%) for CaIPERS miscellaneous members and nine percent (9%) for CaIPERS safety members. For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were a part of the employee's base salary. C. 3% at 50 Service Retirement Benefit for CaIPERS Safety Members. The City agreed to amend its contract with CaIPERS to provide safety members, unrepresented Executive Management employees with the 3% at 50 Service Retirement Benefit effective July 1, 2001. D. 2.7% at 55 Service Retirement Benefit for CaIPERS Miscellaneous Members. The City agreed to amend its contract with CaIPERS to provide miscellaneous members, unrepresented Executive Management employees with the 2.7% at 55 Service Retirement Benefit effective January 1, 2009. E. Employee Contribution for Retirement Benefit. 1. Effective January 1, 2012, CaIPERS safety members, unrepresented Executive Management employees shall pay nine percent (9%) of the employer contribution to CaIPERS for their retirement benefits as cost sharing pursuant 55A-5