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34 <br /> <br />The seven percent (7%) employee cost sharing of the employer cost of <br />retirement identified above shall end no later than the first full pay period <br />beginning on or after August 1, 2015. <br /> <br />Effective as soon as administratively feasible after the date of the Council <br />resolution to amend the contract with CalPERS, but no later than four (4) <br />months following ratification and approval of this agreement, each Tier 1 <br />(3%@50) and Tier 2 (3%@55) unit member shall pay three percent (3%) of the <br />total seven percent (7%) listed above as cost sharing in accordance with Section <br />20516(a) of the California Government Code. The remaining four percent (4%) <br />being paid toward the employer cost of retirement will continue in accordance <br />with Section 20516(f) of the Government Code. <br /> <br />All such employee contributions toward employer cost of retirement will be <br />made on a pre-tax basis. The contributions shall not be credited to the <br />employee account at CalPERS and shall not be reimbursed to the contributor by <br />the City at any time for any reason. <br /> <br />The four percent (4%) cost-sharing in accordance with Section 20516(f) of the <br />Government Code shall end no later than the first full pay period beginning on <br />or after August 1, 2018. <br /> <br />If beginning on or after the first full pay period of September 1, 2013, the <br />employer cost of retirement for the bargaining unit falls below thirty-seven <br />percent (37%) at anytime, the employee contribution toward the employer cost <br />of retirement will be reduced by one percent (1%) for each full one percent <br />reduction in the employer rate below 37%. <br /> <br />14.4 Employee’s Contribution to Retirement System <br /> <br />Effective September 1, 1999, each employee (Tier 1 and Tier 2) willshall pay <br />the Employee’s Contribution currently set at nine percent (9%) of pensionable <br />income to CalPERS to the Public Employees’ Retirement System in accordance <br />with the rules and regulations governing such contributions. <br /> <br />Effective January 1, 2013, employees subject to the Tier 3 (2.7% at 57 Formula) <br />level benefits, shall contribute an amount equivalent to half the normal costs <br />established by CalPERS, currently established as twelve percent (12%) of <br />pensionable income. If the normal cost as determined by CalPERS increases or <br />decreases during the term of this MOU, the employee contribution shall also <br />increase or decrease accordingly. <br /> <br />14.5 414(h)(2) Internal Revenue Service Code <br /> <br />Effective September 1, 1999, the City shall implement the provisions of <br />414(h)(2) for the term of this M.O.U., so long as those provisions [414(h)(2)] <br />remain substantially the same, and so long as there is no additional cost to the <br />employer for this 414(h)(2) participation. In the event of such additional cost <br />to the employer, the parties will meet and confer regarding alternative <br />provisions. <br />6.1.C. - Page 45