Common use of Retirement System Clause in Contracts

Retirement System. Beginning in January of 1982, the City of Porterville contracted with the California Public Employees’ Retirement System (PERS) to provide various retirement benefits for its employees. The City began paying the employee contribution on July 1, 1985. The City’s Contract with PERS was amended, effective July 1, 1998, to provide the 2% at 50 Retirement Plan for Local Safety Members, and Safety Employees began paying the full employee contribution rate on that date. Effective July 1, 1999, the City began paying the 4% of the Safety Employees’ contribution. The employee contribution and earnings, irrespective of who pays them, remain the property of the employee, but may not be withdrawn other than upon retirement or separation from City employment. (Resolution 49-99) The City Council delegates the City Manager authority to make determination under Section 21023.6, Government Code, on behalf of the Agency, regarding a local safety member’s disability and whether such disability is industrial and to certify such determinations and all other necessary information to the Public Employees’ Retirement System. (Resolution 9717) The PERS maintains each employee’s account and provides a statement annually of contributions and interest earned. Benefits provided by this retirement program includes survivor benefits, normal retirement benefits, disability retirement and industrial disability retirement for Local Safety Employees. (Resolution 49-99) Effective August 1, 2002, the City of Porterville will pay 8.5% of the 9% monthly share of the Employees Retirement Contribution to the California Public Employees’ Retirement System, computed as a percentage of salary, for all full-time Fire Series Employees. (Resolution 116- 2002) Effective September 1, 2002, the City of Porterville will pay the 9.0% monthly Employee Retirement Contribution to the California Public Employees’ Retirement System, computed as a percentage of salary , for all full-time Fire Series Employees. (Resolution 141-2002) Effective February 1, 2006, the employee’s share of the monthly CalPERS contribution, i.e., 9%, shall be converted to salary for all Fire Series employees, providing all eligible Fire Series employees participate in paying the employee’s pre-taxed monthly retirement contribution of 9% on the same date as the salary conversion.(Resolution 16-2006) Effective July 1, 2006, the City will amend its contract with CalPERS to provide all eligible Fire Series employees and unrepresented Fire Management employees with 3% @ age 55 full formula retirement benefit. (Resolution 16-2006) Effective July 1, 2012, the City shall implement a two-tiered retirement plan for all new employees hired on or after July 1, 2012. The plan formulas shall be as follows: Safety Formula Employees hired prior to July 1, 2012 3% @ 55 Employees hired between July 1, 2012 and December 31, 2012 2% @ 50 *Employees hired on or after January 1, 2013 2.7% @ 57 (Resolution 23-2011, implementation date amended via Resolution 54-2012, third tier implemented via the Pension Reform Act) *Employees without prior PERS service, prior PERS members with more than a six month break in service with a PERS agency, or previous employees who have withdrawn their pension and have not made arrangements within sixty (60) days of being reinstated to re-deposit it will be placed in the third tier. Effective December 1, 2011, FOS employees shall pay one percent (1%) of the employer contribution rate for fiscal year 2011/2012 which shall be determined according the employee’s base salary. (Resolution 69-2011) Effective March 1, 2012, FOS employees shall pay an additional one percent (1%) of the employer contribution rate for fiscal year 2011/2012 which shall be determined according the employee’s base salary. (Resolution 69-2011) Effective July 1, 2012, FOS employees shall pay fifty percent (50%) of the PERS employer contribution rate increase for fiscal year 2012/2013; however, said employee’s share shall not exceed one percent (1%) of the total increase for fiscal year 2012/2013. (Resolution 69-2011) Effective July 1, 2013, FOS employees shall pay fifty percent (50%) of the PERS employer contribution rate increase for fiscal year 2013/2014. In the event that said increase exceeds a total of three percent (3%), or one and one-half percent (1.5%) for the employee’s share of the increase, FOS shall have the right to re-open negotiations on this item. (Resolution 69-2011) In the event the employer contribution rates decrease for fiscal year 2012/2013 and/or fiscal year 2013/2014, the salary deduction percentages shall decrease accordingly to reflect those rate percentage decreases. (Resolution 69-2011) Effective January 1, 2014, FOS employees shall pay an additional one percent (1%) towards the CalPERS employer contribution rate. (Resolution 06-2014) Benefits contracted for tier one and two employees:

Retirement System. Beginning in January of 1982, the City of Porterville contracted with the California Public Employees’ Retirement System (PERS) to provide various retirement benefits for its employees. The City began paying the employee contribution on July 1, 1985. The City’s Contract with PERS was amended, effective July 1, 1998, to provide the 2% at 50 Retirement Plan for Local Safety Members, and Safety Employees began paying the full employee contribution rate on that date. Effective July 1, 1999, the City began paying the 4% of the Safety Employees’ contribution. The employee contribution and earnings, irrespective of who pays them, remain the property of the employee, but may not be withdrawn other than upon retirement or separation from City employment. (Resolution 49-99) The City Council delegates the City Manager authority to make determination under Section 21023.6, Government Code, on behalf of the Agency, regarding a local safety member’s disability and whether such disability is industrial and to certify such determinations and all other necessary information to the Public Employees’ Retirement System. (Resolution 9717) The PERS maintains each employee’s account and provides a statement annually of contributions and interest earned. Benefits provided by this retirement program includes survivor benefits, normal retirement benefits, disability retirement and industrial disability retirement for Local Safety Employees. (Resolution 49-99) Effective August 1, 2002, the City of Porterville will pay 8.5% of the 9% monthly share of the Employees Retirement Contribution to the California Public Employees’ Retirement System, computed as a percentage of salary, for all full-time Fire Series Employees. (Resolution 116- 2002) Effective September 1, 2002, the City of Porterville will pay the 9.0% monthly Employee Retirement Contribution to the California Public Employees’ Retirement System, computed as a percentage of salary , for all full-time Fire Series Employees. (Resolution 141-2002) Effective February 1, 2006, the employee’s share of the monthly CalPERS contribution, i.e., 9%, shall be converted to salary for all Fire Series employees, providing all eligible Fire Series employees participate in paying the employee’s pre-taxed monthly retirement contribution of 9% on the same date as the salary conversion.(Resolution 16-2006) Effective July 1, 2006, the City will amend its contract with CalPERS to provide all eligible Fire Series employees and unrepresented Fire Management employees with 3% @ age 55 full formula retirement benefit. (Resolution 16-2006) Effective July 1January 1 2012, 2012or as soon thereafter as is procedurally possible, the City shall implement a two-tiered retirement plan for all new employees hired on or after July 1, 2012. The plan formulas shall be as follows: Safety Formula Employees hired prior to July 1, 2012 3% @ 55 Employees hired between July 1, 2012 and December 31, 2012 2% @ 50 *Employees hired on or after January 1, 2013 2.7% @ 57 (Resolution 2371-2011, implementation date amended via Resolution 54-2012, third tier implemented via the Pension Reform Act) *Employees without prior PERS service, prior PERS members with more than a six month break in service with a PERS agency, or previous employees who have withdrawn their pension and have not made arrangements within sixty (60) days of being reinstated to re-deposit it will be placed in the third tier. Effective December July 1, 20112012, FOS PCFA employees shall pay one four percent (14%) of the employer contribution rate for fiscal year 2011/2012 which shall be determined according to the employee’s base salary. (Resolution 6962-2011) Effective March 1, 2012, FOS employees shall pay an additional one percent (1%) of the employer contribution rate for fiscal year 2011/2012 which shall be determined according the employee’s base salary. (Resolution 69-2011) Effective July 1, 2012, FOS employees shall pay fifty percent (50%) of the PERS employer contribution rate increase for fiscal year 2012/2013; however, said employee’s share shall not exceed one percent (1%) of the total increase for fiscal year 2012/2013. (Resolution 69-2011) Effective July 1, 2013, FOS PCFA employees shall continue to pay fifty four percent (504%) of the PERS employer contribution rate increase for fiscal year 2013/2014rate. In the event that said increase exceeds a total of three percent (3%)Resolution 47-2013, or one and one-half percent (1.5%) for the employee’s share of the increase, FOS shall have the City utilized its right to re-open negotiations on this itemand an agreement was made with PCFA preventing them from paying 50% of the 2013-2014 increase as previously agreed via Resolution 62-2012). (Resolution 69-2011) In Effective June 1, 2015, PCFA shall continue to pay 4% toward the event Employer’s CalPERS contribution. Said contribution shall remain in effect until and unless changed by mutual agreement. It is expressly understood and agreed that PCFA continues to dispute the employer contribution rates decrease for fiscal year 2012/2013 and/or fiscal year 2013/2014, City’s right to collect said 4% from the salary deduction percentages shall decrease accordingly to reflect those rate percentage decreases. (Resolution 69-2011) Effective January members of the bargaining unit from July 1, 2014, FOS employees shall pay an additional one percent (1%) towards until the CalPERS employer contribution ratedate of ratification of the Memorandum of Understanding for the 2014-2015 fiscal year. (Resolution 0652- 2015) Effective July 1, 2014, the City’s CalPERS employer’s contribution rate for the Public Safety group increased from 31.234% to 32.507% (a difference of 1.27%). The City agrees to absorb that cost. (Resolution 52-20142015) Benefits contracted for tier one and two employees: