Common use of PERS Contributions Clause in Contracts

PERS Contributions. The Association and the County agree to a pension cost-sharing arrangement pursuant to PERL 20516(f) under which, in addition to the 9% currently paid by classic members of Units A, and B as the employees’ contribution, bargaining unit employees shall pay an amount equal to 3% towards the employer’s PERS contribution for a total of twelve percent contribution. The Association and the County agree that the 3% contributed by classic Association members will be implemented on a pre-tax basis pursuant to IRS Code 414(h)(2). However, it is understood that, should it be determined that the contribution cannot be made on a pre-tax basis, or IRS issues an adverse opinion in this or another jurisdiction addressing the issue, individual members shall be liable for any taxes due. In such case, the parties agree to meet and confer on the impact of such determination, and alternative means of achieving the savings contemplated by this agreement in a manner that minimizes the tax impact on covered employees to the extent possible. The Association and the County agree that, during the term of this agreement, the contribution outlined in this section shall continue as long as the employer rate as determined by CalPERS.