Agmt19 MOU Service Employes International Union Local 521

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Tier 2: For employees hired on or after October 24, 2011, and who do not meet the definition of "new member" asset forth under the Public Employee Pension Reform Act (PEPRA) in Government Code Section 7522.04(f), retirement benefits shall be those established by CalPERS for Local Miscellaneous Members under the two percent (2%) at age sixty (60) formula. For such employees, the CaIPERS retirement benefit will be calculated based on highest average pay rate during thirty-six (36) consecutive months of employment. Tier 3: For employees hired on or after January 1, 2013 and who meet the definition of "new member as set forth under PEPRA in Government Code Section 7522.04(f), retirement benefits shall be those established by CalPERS for Local Miscellaneous Members under the two percent (2%) at age sixty-two (62) formula, in accordance with Government Code Section 7522.20. For such employees, the CaIPERS retirement benefit will be calculated based on highest average pay rate during thirty-six (36) consecutive months of employment. 23.2 Employee and Employer Contributions to Pension Tier 1 employees: Employees in the Tier 1 pension plan, as defined in Section 23. 1, shall contribute the full member contribution of eight percent (8%) of pensionable compensation as the employee member contribution to CalPERS, plus an additional five percent (5%) of pensionable compensation toward the City's pension contribution to CalPERS in accordance with California Government Code Section 20516(f), for a total of thirteen percent (13%) of pensionable compensation. Tfer 2 employees: Employees in the Tier 2 pension plan, as defined in Section 23.1, shall contribute the full member contribution of seven percent (7%) of pensionable compensation as the employee member contribution to CalPERS, plus an additional five percent (5%) of pensionable compensation towards the City's pension contribution to CalPERS in accordance with California Government Code Section 20516(f), for a total of twelve percent (12%) of pensionable compensation. Tier 3 employees: Employees in the Tier 3 pension plan, as defined in Section 23.1, shall pay the rate prescribed by CalPERS for member contributions to CalPERS in accordance with California Government Code section 7522.30 (one-half (1/2) of the total normal cost for pension), plus an additional five percent (5%) of pensionable compensation towards the City's pension contribution in accordance with California Government Code section 20516(f). New members shall be subject to the provisions of the PEPRA, including provisions governing reportable compensation. The City shall pay the rate prescribed by CalPERS for employer contributions to CalPERS in accordance with the rules and regulations governing such employer contributions, less any cost -share amount as described in this section. Employee cost sharing of employer contributions shall not be credited to the employee account at CaIPERS and shall not be reimbursed to the contributor by the City at any time for any reason. 23.3 The City shall maintain the implementation of the provisions of Internal Revenue Code section 414(h)(2) for the term of this Memorandum of Understanding, so long as those provisions of (414(h)(2)) remain substantially the same, and so long as there is no additional cost the employer for this 414(h)(2) participation. In the event of such additional cost to the employer, the parties will meet and confer regarding alternative provisions. 45