75A-1 - PH - 15-16 BUDGET - Laserfiche WebLink

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employment. The cost to purchase this service credit is subject to CalPERS Regulations and calculated using a present value method. L. Deferred Retirement for Classic Safety and Classic Miscellaneous Members as defined in Section B and F (above. The City will continue to make payments to CalPERS on behalf of each eligible affected employee in an amount necessary to pay one hundred percent (100 %) of his or her individual retirement contribution which is equal to eight percent (8 %) of reportable compensation for Classic Miscellaneous Members and nine percent (9 %) for Classic Safety Members. Such payments will be credited to the individual employee's CalPERS account. Such payments are not an increase in base salary and no salary rate range applicable to any of the employees covered by this Resolution will 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 will discontinue and in place thereof the reportable compensation of each Classic Miscellaneous Member eligible for the 2.7% at 55 Benefits Formula will be increased by eight percent (8 %) and each Classic Safety Member eligible for the 3% at 50 Benefits Formula will be increased by nine percent (9 %). For the purpose of reporting an employee's compensation to CalPERS, the City will include these payments as if they were a part of the employee's reportable compensation. Section 7. Tuition Reimbursement. Executive Management (EM) employees are eligible to participate in the Training and Education Assistance Program provided for all regular, full -time employees of the City. Reimbursement will be based on the cost of tuition, required enrollment/registration fees, miscellaneous fees (health, parking, student union fees, etc.) and all required texts, eBooks and related material for each course. Maximum tuition reimbursement will be paid in the highest amount as available to other represented employees. Section 8. Medical Retirement Subsidy Plan, A. The City's current annual contribution towards the Medical Retirement Subsidy Plan for Executive Management (EM) employees covered under this Resolution is 1.75% of the base salary, which is based on the first payroll period in October and deposited no later than October 31't of each year. B. The plan will be administered by the City, at no cost to Executive Management (EM) employees pursuant to the written directives of Executive Management (EM) employees. The funds contributed by the City will be maintained in such a manner as to ensure that the funds are invested in a reasonably secure plan that bears a reasonable rate of interest/growth given current financial markets. For purposes of this Resolution, 75A -1 -22