Res16 15533 - Laserfiche WebLink

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Tier 3 : - For employees hired on or after January 1, 2013 and meet the definition of "new member" as set forth in Government Code Section 7522.02(f) the City will provide the CaIPERS two percent (2%) at age sixty-two (62) formula retirement plan for Local Miscellaneous Members, and two and seven-tenths percent (2.7%) at age fifty-five (55) formula retirement plan for Local Safety members in accordance with Government Code 1 Section 7522.20. Final compensation is calculated based on the average of three years of employment, in accordance with Government Code Section 7522.32. The City shall pay the rate prescribed by the Public Employees' Retirement System for employer contributions to the Public Employees' Retirement System in accordance with the rules and regulations governing such employer contributions, which consists of one- half of the total normal costs for pension. New members shall be subject to the provisions of the Public Employee Pension Reform Act (PEPRA), including provisions governing reportable compensation . Employee Member Contribution Effective October 31, 2016 the employee shall pay the full required employee contribution in accordance with the established plan . The current required contribution rates are as follows : Miscellaneous Members Public Safety Members Tier 1 8% 9% Tier 2 7% 9% Tier 3* 5.75% 12% *The mandatory contribution for Tier 3 Members is 50% of the normal cost of the benefit, subject to change each fiscal year. Employee Contribution to Employer Share of Pension - The City shall pay the rate prescribed by the Public Employees' Retirement System for employer contributions to the Public Employees' Retirement System in accordance with the rules and regulations governing such employer contributions. Effective October 31, 2016 in accordance with Section 20516(f) of the Government Code, employees in Tier 1 and Tier 2 retirement formula plans shall pay a total of nine percent (9%) of salary toward the employer cost of retirement, and employees in the Tier 3 retirement formula plan shall continue to pay a total of two percent (2%) of salary toward the employer cost of retirement. The current contribution rates are as follows: ATTY/RESO.0096/CC RESO FOR EXECUTIVE MANAGEMENT SALARY & SUMMURY OF BENEFITS EXHIBIT B REV: 10-14-16 RL Page 12 of 18