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4.3 Salaries. <br />A. Effective July 1, 2013, the base salary of employees covered by this Agreement <br />shall be increased by two (2) salary rate ranges (approximately 1 %). <br />B. Effective July 1, 2013, Miscellaneous employees covered by this Agreement shall <br />contribute an additional one percent (1 %) of their salary for a total of nine percent <br />(9 %) toward the employer cost of the 2.7% at 55 retirement benefit. To the extent <br />permitted by Ca1PERS and Internal Revenue Service regulations, this 1% <br />contribution shall be implemented through payroll deduction on a pre -tax basis. <br />C. The parties agree that the City will not have to issue retroactive checks because the <br />employee's PERS contribution is being increased by the same amount. <br />D. The assignment of classes to salary rate ranges is listed in Exhibit B and made a <br />part hereof as though set forth herein. <br />4.4 Application of Basic Compensation Plan. The salary rate ranges contained in Section 4.2 <br />and Exhibit `B" are monthly salary rate ranges. However, all employees working in <br />classifications of employment covered by this Agreement shall be compensated at an <br />hourly rate. The regular rate of pay shall be computed as provided for by the Fair Labor <br />Standards Act (FLSA). <br />Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by <br />dividing the monthly salary rate by 173.33. In determining the hourly rate as herein <br />provided, computation shall be made to the nearest whole cent and a computation <br />resulting in an even one -half cent shall fix the rate at the next higher whole cent. <br />4.5 Probation. The probationary period shall be the hourly equivalent of one (1) year (2080 <br />hours) from the date of appointment from an open eligible list (new hire) or a <br />.reappointment eligible list (rehire) and the hourly equivalent of six (6) months (1040 <br />hours) from the date of appointment from a promotional eligible list. <br />4.6 Beginning Rates. A new employee of the City of Santa Ana shall be paid the rate shown <br />as Step "AA" in the salary rate range allocated to the class of employment for which he <br />or she has been hired. In special instances where such new employee possesses unique <br />and exceptional educational training and/or experience qualifications, the Department <br />Head, under whom the employee will serve, may submit a written request and <br />justification to the City Manager for authorization to place such new employee on Step <br />"A," "B," "C," or "D" within the allocated salary rate range, provided that, such employee <br />shall be assigned such salary step upon the commencement of his or her service in the <br />classification of employment to which the salary rate range applies and such assignment <br />having once been made shall remain in effect until the said employee shall be entitled to <br />advance to the next salary step in accordance with the further provisions of this Article. <br />G <br />