CALPERS EMPLOYEE COST SHARING Sample Clauses

CALPERS EMPLOYEE COST SHARING. Employer contribution requirements are calculated and adjusted annually by CalPERS. The total employer contribution requirement is comprised of the Employer Normal Cost Rate (a percentage) and the Employer Payment of Unfunded Liability (a fixed dollar amount). The Employer Payment of Unfunded Liability is converted to a percentage by dividing the CalPERS projected payroll. Adding the Employer Normal Cost Rate to the percentage equivalent of the Employer Payment of Unfunded Liability results in the Total Employer Contribution Rate. It is agreed that, effective July 1, 2019, in the event that the Total Employer Contribution Rate exceeded 25% of pensionable income, unit employees shall pay 50% of the increase, up to 3.5% of pensionable income. For example, if the employer contribution rate increases to 27% of pensionable income, the City would pay 26% of pensionable income and the unit employee would pay 1% of pensionable income. The Total Employer Contribution Rate for Fiscal Year 2020-21 is 29.864% of pensionable income. Therefore, the employee share of cost is 2.432%. The City agrees to pause the 2.432% employee cost sharing effective with the pay period beginning January 4, 2021 through pay period ending June 20, 2021. The 2.432% employee cost sharing shall resume with the pay period beginning June 21, 2021.