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7.1.A. - Page 86 , <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2014 <br /> NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br /> The plans' provisions and benefits in effect at June 30, 2014 are summarized as follows: <br /> Public Safety Public Safety Public Safety <br /> Tier 1 Tier 2 Tier 3 <br /> Benefit vesting schedule 5 years service 5 years service 5 years service <br /> Benefit payments monthly for life monthly for life monthly for life <br /> Retirement age 50 50 50 <br /> Benefit factor for each year of service, as a % of annual <br /> salary 3% 2.4% - 3% 2% - 2.7% <br /> Required employee contribution rates 9% 9% 12% <br /> Miscellaneous Miscellaneous Miscellaneous <br /> Tier 1 Tier 2 Tier 3 <br /> Benefit vesting schedule 5 years service 5 years service 5 years service <br /> Benefit payments monthly for life monthly for life monthly for life <br /> Retirement age 50 50 52 <br /> Benefit factor for each year of service, as a % <br /> of annual salary 2% - 2.7% 1.092% - 2.418% 1% - 2.5% <br /> Required employee contribution rates 8% 7% 6.25% <br /> The City's Tier 2 plans for public safety and miscellaneous cover new employees hired on or after October <br /> 13, 2011. <br /> The City's Tier 3 plans for public safety and miscellaneous cover new employees hired on or after January <br /> 1, 2013 pursuant to the Public Employees' Pension Reform Act of 2013. <br /> Employer contributions are determined by PERS as a percentage of covered payroll and represent the <br /> actuarially required contribution. The employer contributions for the past three years are: <br /> Public Safety Miscellaneous <br /> 2012 35.315% 18.328% <br /> 2013 35.645% 19.462% <br /> 2014 36.316% 20.856% <br /> Since the City consistently applied the employer contribution rates, as determined by PERS, the City's <br /> annual pension cost equaled the City's actuarially required contribution for the fiscal year ended June <br /> 30, 2014. <br /> All qualified permanent and probationary employees are eligible to participate in PERS. A credited service <br /> year is one year of full time employment. In accordance with the memorandums of understanding with <br /> the various employee groups, the City may contribute a portion of the employee contribution. This <br /> contribution varies from group to group. These benefit provisions and all other requirements are <br /> established by state statute and City ordinance. Contributions necessary to fund PERS on an actuarial basis <br /> are determined by PERS and its Board of Administration. <br /> Police and fire safety employees hired before October 13, 2011 (Tier 1) are covered under the "3% at 50" <br /> formula. Under this retirement plan, an employee's retirement earnings at age 50 are calculated by <br /> 58 <br />