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4. Any PMA employee that is off on IOD or other leave of absence whose Performance Appraisal date occurs while off work will have their appraisal date adjusted when returning to work for the time not worked. The employee will not be eligible for the incentive bonus payment until completing the required time in their regular position necessary to be evaluated per current departmental policy. 5. Performance based monetary incentive payment amounts for Police Management personnel shall be recommended by the employees Supervisor and requires the approval of both the Police Chief and City Manager, 6. The Police Chief shall be responsible for the development and administration of detailed administrative procedures and guidelines for the consistent and effective application of the PMA performance appraisal evaluation criteria. Such procedures and guidelines shall define how performance objectives, measure and standards are developed; when and how performance reviews are to be carried out; how overall performance ratings will be determined; and how performance based monetary incentive payment options are to be exercised. 7. If it is determined by PERS that the "Bonus" is not eligible to be included as PERSable compensation, the City shall convert the bonus to two (2) additional merit based steps at increments of 2.5% for the last year that the employee earned the Bonus. The association understands and agrees that these steps would be merit based and employees must maintain a Significantly Exceeds Rating to receive or maintain the 5% or Exceeds expectations rating to receive or maintain the 2.5 %. Employees who do not receive Significantly Exceeds rating or Exceeds Expectations rating will be returned to Step 4 of the PMA salary schedule. a. A copy of any correspondence from PERS regarding the PERSability of this bonus will be attached to this contract as Exhibit "C ". 4.9 Promotional Salary Advancement. When an employee is promoted to a position in a higher classification from a position in a lower classification, he or she shall be reassigned to the lowest step in the appropriate salary rate range for the higher classification that gives the employee a minimum increase of one (1) salary step (approximately 5 %) over his or her current base salary step (plus any pay for performance bonus if said employee was at top step in their current classification) and exclusive of any pay additive or additives such as shift differential, assignment pay, special skill pay or the like. 4.10 Demotion. When an employee is demoted to a position in a lower classification, his or her salary rate shall be fixed in the appropriate salary rate range for the lower classification in accordance with the following provisions: 10 25F -12