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City of Redwood City 6.1.E. - Page 88 <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2015 <br /> NOTE 9—EMPLOYEE BENEFITS(CONTINUED) <br /> The plans' provisions and benefits in effect at June 30, 2015 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 /> Required employer contribution rates 40.68% 40.68% 40.68% <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 /> Required employer contribution rates 22.58% 22.58% 22.58% <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 /> 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 /> multiplying 3% by the employee's years of service. This percentage factor increases with the employee's <br /> age upon retirement. <br /> Police and fire safety employees hired on or after October 13, 2011 (Tier 2) are covered under the "3% <br /> at 55" formula. Under this retirement plan, an employee's retirement earnings at age 55 are calculated <br /> by multiplying 3% by the employee's years of service. An employee with five years of service is eligible <br /> to retire at age 50 at a reduced pension amount. The pension amount increases with age and length of <br /> service, with the maximum percentage factor equal to 3%. <br /> Police and fire safety employees hired on or after January 1, 2013 (Tier 3) are covered under the "2.7% <br /> at 57" formula. Under this retirement plan, an employee's retirement earnings at age 57 are calculated <br /> by multiplying 2.7% by the employee's years of service. An employee with five years of service is <br /> eligible to retire at age 50 at a reduced pension amount. The pension amount increases with age and <br /> length of service, with a maximum percentage factor equal to 2.7%at age 57. <br /> Miscellaneous employees hired before October 13, 2011 (Tier 1) are covered under the "2.7% at 55" <br /> formula. Under this retirement plan, an employee's retirement earnings,at age 55, are calculated by <br /> 59 <br />