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8.3.B. - Page 3 <br /> Retirement Contributions <br /> In order to address increasing pension costs, the City previously implemented increased <br /> employee contributions towards the cost of pensions. Currently, Executive Managers <br /> contribute up to 18% of salary towards their pension benefit, depending on the <br /> individual's pension tier. In addition, pension contributions were scheduled to increase <br /> by 3% of salary this fall. Based on compensation survey data, the City's pension <br /> contributions for executives are substantially higher than other Bay Area cities, which <br /> may put the City at a competitive disadvantage in recruitment efforts. Additionally, <br /> subordinate personnel typically have lower pension contributions, which can discourage <br /> advancement into executive positions. Therefore, staff recommends maintaining current <br /> contribution levels instead of increasing them. <br /> Salary <br /> A total compensation survey was conducted for each executive position and no <br /> positions were found to be significantly below market, therefore no equity adjustments <br /> are proposed. Compaction adjustments are proposed for some Executive Management <br /> classifications to ensure that the ranges for these classifications maintain a differential <br /> of 10% above subordinate classifications, as is provided for in the Executive <br /> Management Summary of Benefits. Due to the Police Department restructuring and <br /> two-tier salary plan implemented in September, 2012, Police Executives will receive a <br /> partial adjustment with the goal of achieving 10% alignment over time. Compaction <br /> adjustments to salary ranges apply to the range only; individual salary increases within <br /> those ranges are set by the City Manager on the basis of performance. <br /> In addition to these changes, the salary ranges have been standardized for a consistent <br /> 35% spread between the minimum and maximum of the range. This additional <br /> adjustment was applied to the minimum of the ranges, and does not impact the <br /> maximum of the ranges. This change does not adjust individual salaries, which are set <br /> by the City Manager on the basis of performance. <br /> Other Economic Terms <br /> The maximum educational reimbursement eligibility will be increased from $650 to <br /> $1,500 per fiscal year, in order to maintain a meaningful incentive for advanced <br /> education. The maximum allowance for educational reimbursement has not increased in <br /> more than twenty years, while tuition and other education-related costs have increased <br /> significantly during the same period. <br />