Common use of CALPERS RETIREMENT BENEFITS Clause in Contracts

CALPERS RETIREMENT BENEFITS. The Public Employees’ Pension Reform Act (PEPRA) of 2013 applies to all public employers and public pension plans (which includes CalPERS). Hire date on or after 1/1/13 and deemed “new” member (New member = no prior CalPERS/reciprocal employment or a break in service greater than 6 months) Benefits include:  Section 7522.25 (2.7% @ 57 Safety Formula)  Section 20037 (Three Year Final Compensation)  Employee contribution = 50% of Total Normal Cost, currently 12% Contribution amount is recalculated each year by XxxXXXX actuarial study. Hire date on or after 9/1/12 and deemed “classic” member (Classic member = prior CalPERS/reciprocal employment with less than 6 month break in service) Benefits include:  Section 21362 (2% @ 50 Safety Formula)  Section 20037 (Three-Year Final Compensation)  Employee contribution (Section 20678) = 9%  Effective September 1, 2015 employees shall pay a combined total of twelve percent (12%) (9% employee contribution plus 3% employer contribution) towards CalPERS retirement. The 3% shall be paid as a cost share via MOU (pursuant to Government Code Section 20516 (f)) until a CalPERS contract amendment can be completed (which includes an election process) pursuant to Government Code Section 20516 (a). In the event that the election does not result in a contract amendment, the employees agree to continue the stated contribution via MOU pursuant to Government Code Section 20516 (f). Hire date prior to 9/1/12 Benefits include:  Section 21362.2 (3% @ 50 Safety Formula)  Section 20042 (One Year Final Compensation)  Employee contribution (Section 20678) = 9%  Effective September 1, 2015 employees shall pay a combined total of twelve percent (12%) (9% employee contribution plus 3% employer contribution) towards CalPERS retirement. The 3% shall be paid as a cost share via MOU (pursuant to Government Code Section 20516 (f)) until a CalPERS contract amendment can be completed (which includes an election process) pursuant to Government Code Section 20516 (a). In the event that the election does not result in a contract amendment, the employees agree to continue the stated contribution via MOU pursuant to Government Code Section 20516 (f). As an offset for the increased employee PERS contribution, all employees will receive a 2.15% base wage increase effective September 1, 2015. All Fire safety retirements also include the following contracted CalPERS provisions:  Section 20903 (Two Years Additional Service Credit – if “Golden Handshake” activated)  Section 20965 (Credit for Unused Sick Leave)  Section 21024 (Military Service Credit as Public Service)  Section 21027 (Military Service Credit for Retired Persons)  Section 21427 (Improved Non Industrial Disability Allowance)  Section 21548 (Pre-Retirement Option 2W Death Benefit)  Section 21574 (Fourth Level of 1959 Survivor Benefits)  Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance)

CALPERS RETIREMENT BENEFITS. City does not participate in Social Security, but 1.45% for Medicare is a mandatory payroll deduction. City participates in the California Public Employees Retirement System (CalPERS). The Public Employees’ Pension Reform Act (PEPRA) of 2013 applies to all public employers and public pension plans (which includes include CalPERS). Hire date on or after 1/1/13 and deemed “new” member (New member = no prior CalPERS/reciprocal employment or a break in service greater than 6 months) Benefits include:  Section 7522.25 (2.7% @ 57 Safety Formula)  Section 20037 (Three Year Final Compensation)  Employee contribution = 50% of Total Normal Cost, currently 12% . Contribution amount is recalculated each year by XxxXXXX actuarial study. Hire date on or after 9/1/12 and deemed “classic” member (Classic member = prior CalPERS/reciprocal employment with less than 6 month break in service) Benefits include:  Section 21362 (2% @ 50 Safety Formula)  Section 20037 (Three-Year Final Compensation)  Employee contribution (Section 20678) = 9%  Effective September 1, 2015 employees Employees shall pay a combined total of twelve percent (12%) (9% employee contribution plus 3% employer contribution) towards CalPERS retirement. The 3% shall be paid into the employee’s individual CalPERS account as a cost share via MOU (pursuant to Government Code Section 20516 (f)) until a CalPERS contract amendment can be completed (which includes an election process) pursuant to Government Code Section 20516 (a). In the event that the election does not result in a contract amendment, the employees agree to continue the stated contribution via MOU pursuant to Government Code Section 20516 (f). Hire date prior to 9/1/12 Benefits include:  Section 21362.2 (3% @ 50 Safety Formula) ),  Section 20042 (One Year Final Compensation)  Employee contribution (Section 20678) = 9%  Effective September 1, 2015 employees Employees shall pay a combined total of twelve percent (12%) (9% employee contribution plus 3% employer contribution) towards CalPERS retirement. The 3% shall be paid into the employee’s individual CalPERS account as a cost share via MOU (pursuant to Government Code Section 20516 (f)) until a CalPERS contract amendment can be completed (which includes an election process) pursuant to Government Code Section 20516 (a). In the event that the election does not result in a contract amendment, the employees agree to continue the stated contribution via MOU pursuant to Government Code Section 20516 (f). As an offset for the increased employee PERS contribution, all employees will receive a 2.15% base wage increase effective September 1, 2015. All Fire safety retirements also include the following contracted CalPERS provisions:  Section 20903 (Two Years Additional Service Credit – if “Golden Handshake” activated)  Section 20965 (Credit for Unused Sick Leave)  Section 21024 (Military Service Credit as Public Service)  Section 21027 (Military Service Credit for Retired Persons)  Section 21427 (Improved Non Industrial Disability Allowance)  Section 21548 (Pre-Retirement Option 2W Death Benefit)  Section 21574 (Fourth Level of 1959 Survivor Benefits)  Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance)