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6.G. - Pa Reej Of T$i7 <br />City <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2018 <br />NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br />A. Pension Plan, Continued <br />Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of <br />payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions <br />toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City's required <br />contribution for the unfunded liability was $6,427,130 and $6,051,767 for the safety and miscellaneous <br />plans respectively in fiscal year 2018. <br />The City's Tier 2 plans for public safety and miscellaneous cover new employees hired on or after <br />October 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 to <br />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 eligible <br />to retire at age 50 at a reduced pension amount. The pension amount increases with age and length of <br />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 />multiplying 2.7% by the employee's years of service. An employee with five years of service is eligible to <br />retire at age 50 at a reduced pension amount. The pension amount increases with age and length of <br />service. <br />Miscellaneous employees hired on or after October 13, 2011 (Tier 2) are covered under the "2% at 60" <br />formula. Under this retirement plan, an employee's retirement earnings at age 60 are calculated by <br />multiplying 2% by the employee's years of service. An employee with five years of service is eligible to <br />retire at age 50 at a reduced pension amount. The pension amount increases with age and length of <br />service. <br />67 273 <br />