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ARTICLE XII <br />12.0 RETIREMENT <br />12.1 Goner . The terms of the, existing contract between the City and California Public <br />Employees' Retirement System (COPERS) governing the City retirement benefits for <br />employees are incorporated by reference hercin, The City shall continue to make <br />contributions to (CalPERS) in accordance with its contract with CalPERS for employees <br />covered by said contract as amended, <br />12.2 Doforrgd Retiremont. The City shall continue to make payment to CalPERS on behalf of <br />each employee covered by this MOU in accordance with the following schedule; <br />A, With respect to Miscellaneous employees covered by this MOU who do not <br />qualify as "New Members" under the California Public Employees' Pension <br />Reform Act of 2013 (PEPRA), the City shall pay an amount necessary to pay one <br />hundred percent (100 %) of his or her individual retirement contribution which is <br />equal to eight percent (8 %). <br />Such payments shall be credited to the individual employee's COPERS account <br />Such payments are not increases in base salary and no salary rate range applicable <br />to any of the employees covered by this MOTJ shall be changed or deemed to <br />have been changed by reason 'thereof. As a result, the City will not treat these <br />payments as ordinary income and., thus will not withhold Federal or State income <br />tax from said payments, The City has received an opinion or ruling from the <br />Internal Revenue Service continuing that these payments are deferred <br />compensation, not ordinary income, <br />In the event that the City receives a titling from the Internal Revenue Service that <br />such payments are ordinary income of the employees instead of deferred <br />compensation, the City's obligation to make such payments shall discontinue and <br />in place thereof the base salary of each said employee shall forthwith be increased <br />by sixteen (16) salary rate ranges (8 0/o), <br />For the purpose of reporting an employee's compensation to CaiPERS, the City <br />shall include these payments as if they were a part of the employee's base salary. <br />12.3 Credit for Unused Sick Leave. Employees covered by this MOU, can have unused <br />aocuumlated sick leave at the tune of retirement converted to additional service credit at <br />the rate of 0.004 years of service credit for each day of unused sick leave (i.e,, 200 clays <br />of sick leave equals ,8 additional years of service credit). The City most report only those <br />days of unused sick leave that were accrued by the employee during the normal course of <br />employment. This section applies to members whose effective date of retirement is <br />within four (4) months of separation from employment. <br />52 <br />25A -56 <br />