Common use of Tier 2 Clause in Contracts

Tier 2. Pursuant to the California Public Employees’ Pension Reform Act of 2013 (PEPRA), employees hired on or after January 1, 2013, will be covered by the 2.0% at age 62 retirement formula with the 36 highest consecutive months final compensation provision as a “New CalPERS Member” if the employee 1) has not been a member of a California Public Retirement System, or 2) had prior CalPERS/reciprocity service with a break in service of six months or longer. Employees will be covered by the Indexed level of 1959 Survivors’ Benefit Program (Government Code Section 21382.4) Survivor Continuance allowance; credit for unused sick leave; and military service credit buy back option. Also pursuant to PEPRA, New CalPERS Members will be responsible for paying one-half of the total normal cost rate for the retirement benefit on a bi-weekly pre-tax basis. Employees hired on or after August 7, 2011, will not be eligible for the Public Agency Retirement System (PARS) 0.7% at age 55 supplemental retirement benefit formula.

Appears in 2 contracts

Sources: Memorandum of Understanding, Memorandum of Understanding