SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721 (SEIU) (2011 SIDE LETTER)

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City's contribution toward the SEIU Medical Retirement Subsidy Plan shall equal 1.40% of the bargaining unit's salary base (including assignment pays). E. Effective October 1, 2009, the City's contribution toward the Medical Retirement Subsidy Plan shall increase by 0.35% under the conditions specified in Section 11.6 A above. With this final contribution amount, the City's contribution toward the SEIU Medical Retirement Subsidy Plan shall equal 1.75% of the bargaining unit's salary base (including assignment pays). F. For fiscal years 2010-11, 2011-12, and 2012-13, the City's annual contribution toward the Medical Retirement Subsidy Plan shall be decreased from 1.75% to 1.0%. Notwithstanding the previous paragraph, the Union will forgive the annual 2011-2012 medical subsidy payment made by the City effective October 20, 2011 and remit the sum received back to the City for deposit into the City's general fund effective December 20, 2011. Thereafter, each successive annual medical subsidy payment shall become payable to the Union by July 31" of each succeeding year beginning July 31, 2012. The Union shall have the right to utilize funds from the medical subsidy account to pay for periodic actuarial reviews of the medical subsidy fund account's accrual and payment rates to insure the ongoing sustainability of the fund. The parties acknowledge that the dollar figure represented by SEIU for savings to the general fund is actually an all funds savings. The parties agree that if it is lawful for SEIU to give the money back to the City such that it can be deposited in the General Fund, that SEIU will cooperate with the City to take whatever steps are necessary to have these funds provided to the general fund. Effective fiscal year 2013-14, the City's annual contribution shall revert to 1.75%. Article XII, Section 12.6 is amended and Section 12.7 is added as follows: 12.6 2.7% at 55 Service Retirement Benefit for Miscellaneous Members. Effective January 1, 2009, the City agrees to amend its retirement contract with CaIPERS to provide Miscellaneous employees covered by this agreement with the 2.7% at 55 Service Retirement benefit. Pursuant to Ca1PERS regulations, this new formula will apply to employees that are in active status on the date this amendment takes effect. This new formula will apply to each year of eligible service credited with the City of Santa Ana. 4