Common use of Tier One Clause in Contracts

Tier One. For employees hired by the City into the Association prior to January 1, 2013, or for “classic” members of CalPERS hired after January 1, 2013, the City’s contract with ▇▇▇▇▇▇▇ provides the 3% @ age 50 retirement formula, fourth level 1959 Survivors Benefit and the Military Service credit, with 12 months final compensation. Employees shall pay an additional three percent (3%) towards the employer’s pension contribution rate for a total employee contribution of 12%. Pursuant to IRS Code Section 414 (h)(2), these payments shall be made on a pre-tax basis. The City has contracted with CalPERS for Employee Cost Sharing as set forth in Government Code section 20516(a). These additional employee pension contributions shall be credited to each member’s account as a normal contribution.