Common use of Retirement Issues Clause in Contracts

Retirement Issues. A. CalPERS Retirement Formula Determination of each employee’s pension formula will be administered as required by CalPERS. 1. Tier 1 - Retirement benefits for Classic members entering membership for the first time in the miscellaneous classification prior to October 5, 2012, shall be calculated using the retirement formula of 2% @ 55 with Single-Highest Year Final Compensation. 2. Tier 2 - Retirement benefits for Classic members entering membership for the first time in the miscellaneous classification on or after October 5, 2012, shall be calculated using the retirement formula of 2% @ 60, with Average of Three-Year Final Compensation. 3. Tier 3 - Effective January 1, 2013, New members shall have retirement benefits calculated using the retirement formula of 2% at age 62, with Average of Three- Year Final Compensation. B. CalPERS Contribution Calculation of the employee contribution toward normal cost will be administered as required by CalPERS. 1. Employees in Tier 1 and 2 will pay 7% of the CalPERS employee contribution. 2. Employees in Tier 3 pay 50% of normal cost of their pension.

Retirement Issues. A. CalPERS Retirement Formula Determination of each employee’s pension formula will be administered as required by CalPERS. 1. Tier 1 - Retirement benefits for Classic members entering membership for the first time in the miscellaneous classification prior to October 5, 2012, shall be calculated using the retirement formula of 2% @ 55 with Single-Highest Year Final Compensation. 2. Tier 2 - Retirement benefits for Classic members entering membership for the first time in the miscellaneous classification on or after October 5, 2012, shall be calculated using the retirement formula of 2% @ 60, with Average of Three-Year Final Compensation. 3. Tier 3 - Effective January 1, 2013, New members shall have retirement benefits calculated using the retirement formula of 2% at age 62, with Average of Three- Three-Year Final Compensation. B. CalPERS Contribution Calculation of the employee contribution toward normal cost will be administered as required by CalPERS. 1. Employees in Tier 1 and 2 will pay 7% of the CalPERS employee contribution. 2. Employees in Tier 3 pay 50% of normal cost of their pension.