RETIREMENT COST SHARING Clause Samples
The Retirement Cost Sharing clause establishes how the costs associated with employee retirement benefits are divided between the parties involved, such as an employer and a contractor or between joint venture partners. Typically, this clause outlines the specific types of retirement expenses covered—such as pension contributions or retirement plan administration fees—and details the proportion or method by which each party will contribute to these costs. Its core practical function is to ensure transparency and fairness in allocating retirement-related financial obligations, thereby preventing disputes and clarifying each party’s responsibilities.
RETIREMENT COST SHARING a. Effective January 1, 2018, employees will pay one-half of the difference, if any, between the present employee contribution and 50% of the County combined employee and employer normal cost as defined in the County Employee Retirement Law of 1937 (1937 Act).
b. Effective July 1, 2018, employees will pay three-quarters of the difference, if any, between the present employee contribution and 50% of the combined employee and employer normal cost as defined in the County Employees Retirement Law of 1937 (1937 Act).
c. Effective July 1, 2019, all employees will pay 50% of the combined employee and employer normal cost as defined in the County Employee Retirement Law of 1937 (1937 Act).
RETIREMENT COST SHARING a. Fiscal Year 2016-2017: No additional retirement pick-up.
b. Fiscal Year 2017-2018: Effective January 1, 2018, all employees will pay an increase in their retirement contribution by two percent (2%).
c. Fiscal Year 2018-2019: Effective the first pay period of July 2018, all employees will pay an additional increase in retirement contribution by two percent (2%).
d. Effective June 30, 2019, all employees will pay fifty percent (50%) of the combined employee and employer normal cost as defined in the County Employees’ Retirement Law of 1937.
RETIREMENT COST SHARING. 47 11.10 Tier 5 Miscellaneous Employee Retirement.............................. 47
RETIREMENT COST SHARING. The CITY shall pay the employer rate prescribed by the Public Employees’ Retirement System (PERS) in accordance with the rules and regulations governing such employer contributions. Effective July 1, 2015, employees will pay a portion of the employer rate, as prescribed below.
A. Classic sworn Employees shall pay 100% of the required member contribution rate (9%), plus an additional 3.0% of pensionable compensation towards the employer’s contribution for a total of 12%. Classic non-sworn employees shall pay 100% of the required member contribution rate (7%), plus an additional 3% of pensionable compensation towards the employer’s contribution for a total of 10%. For the duration of this contract, classic members, as defined by ▇▇▇▇▇▇▇ (MOU sections 8.1. ▇. & B. and sections 8.2. A. & B.), shall contribute no more than 12% (sworn) or 10% (non-sworn) of pensionable compensation towards retirement.
B. PEPRA employees shall pay 50% of the plan’s total normal cost, plus an additional 3% of pensionable compensation. In accordance with the side agreement reached by the parties (included as Appendix B to this Agreement), for the duration of this contract, Sworn PEPRA members, as defined by CalPERS (MOU sections 8.1 C. and sections 8.2 C.) shall pay no more than 16% of pensionable compensation towards retirement, unless required by law (i.e., if 50% of the Normal Cost exceeds 16%). During the term of this agreement, the parties agree to work together further to take all steps reasonably required to address issues related to possible overpayment of cost-sharing amounts by PEPRA members and for the City to adopt and implement any required revisions or amendments to its contract with CalPERS and/or associated City resolutions to effectuate the previously agreed-to cost-sharing under this Article.
C. For the duration of this contract, the City shall not impose any increases to the member contribution for classic or PEPRA members beyond those provided herein unless the employer contribution is reduced by a commensurate rate or as otherwise negotiated by the parties.
RETIREMENT COST SHARING. The City agrees to absorb any changes in the employer contribution rates through June, 2005. Beginning with contribution rate changes effective July, 2005, any increase in the employer rate in excess of 1.5% will be shared equally (50/50) between the City and the employees. The resulting employee share will be reduced from the July, 2005 calculated CPI adjustment. The same methodology will be followed in subsequent years of the term of this MOU. In no case shall the adjustment exceed 1% of salaries, alone or in combination with the health premium sharing calculation described in Section 21.1 above.
21.5.3.1 In the event there is a reduction in the employer contribution rate from the previous year’s rate, the sharing formula described in 21.5.5 will be reversed. The City would realize the first 1.5% reduction in contribution rate. Reductions greater than 1.5% would be shared equally (50/50) between the City and the employees. The July CPI adjustment would be increased by the resulting employee share, not to exceed the amount contributed by employees the previous year under the combined retirement/health premium cost sharing calculations and in no case greater than 1% of unit salaries.