AgdaPkt 2015-04-13 Closed and Joint SA and PFA REVISED 04_10_2015

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8.A. - Page 76 The plans'provisions and benefits in effect at June 30,2014 are summarized as follows: Public Safety Public Safety Public Safety Tier 1 Tier 2 Tier 3 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50 Benefit factor for each year 3% 2.4%-3% 2%-2.7% of service,as a%of annual salary Required employee 9% 9% 12% contribution rates Miscellaneous Miscellaneous Miscellaneous Tier 1 Tier 2 Tier 3 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 52 Benefit factor for each year 2%-2.7% 1.092%-2.418% 1%-2.5% of service,as a% of annual salary Required employee 8% 7% 6.25% contribution rates The City's Tier 2 plans for public safety and miscellaneous cover new employees hired on or after October 13,2011. The City's Tier 3 plans for public safety and miscellaneous cover new employees hired on or after January 1,2013 pursuant to the Public Employees'Pension Reform Act of 2013. Employer contributions are determined by PERS as a percentage of covered payroll and represent the actuarially required contribution.The employer contributions for the past three years are: Public Safety Miscellaneous 2012 35.315% 18.328% 2013 35.645 19.462 2014 36.316 20.856 2015 40.680 22.583 Since the City consistently applied the employer contribution rates, as determined by PERS, the City's annual pension cost equaled the City's actuarially required contribution for the fiscal year ended June 30,2014.Employees pay a portion of the City's costs ranging from 5% to 12%by 2016. All qualified permanent and probationary employees are eligible to participate in PERS. A credited service year is one year of full time employment. In accordance with the memorandums of understanding with the various employee groups, the City may contribute a portion of the employee contribution. This contribution varies from group to group. These benefit provisions and all other requirements are established by state statute and City ordinance. Contributions necessary to fund PERS on an actuarial basis are determined by PERS and its Board of Administration. Police and fire safety employees hired before October 13,2011 (Tier 1)are covered under the "3% at 50" formula. Under this retirement plan, an employee's retirement earnings at age 50 are calculated by multiplying 3% by the employee's years of service. This percentage factor increases with the employee's age upon retirement. Police and fire safety employees hired on or after October 13, 2011 (Tier 2)are covered under the "3% at 55" formula. Under this retirement plan, an employee's retirement earnings at age 55 are calculated by multiplying 3% by the employee's years of service. An employee with five years of service Appendix A Page 2