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6.A. - Page 94 of 191 CITY OF REDWOOD CITY NOTES TO THE BASIC FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 2019 NOTE 9 — EMPLOYEE BENEFITS A. Pension Plan General Information about the Pension Plan: Plan Description — All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple -employer defined benefit pension plans administered by the California Public Employees' Retirement System (Ca1PERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. Ca1PERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the Ca1PERS website. Benefits Provided — Ca1PERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and/or their beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law (PERL). The plans' provisions and benefits in effect at June 30, 2019 are summarized as follows: Benefit Vesting Schedule Benefit payments Retirement age Benefit factor for each year of service as a % of annual salary Required employee contribution rates Required employer contribution rates -normal cost Benefit Vesting Schedule Benefit payments Retirement age Benefit factor for each year of service as a % of annual salary Required employee contribution rates Required employer contribution rates -normal cost Public Safety Tier 1 Public Safety Tier 2 Public Safety Tier 3 5 years of service 5 years of service 5 years of service Monthly for life Monthly for life Monthly for life 50 55 57 3% 9% 21.925% Miscellaneous Tier 1 5 years of service Monthly for life 55 2%-2.7% 8% 8.961% 2.4%-3% 9% 21.925% Miscellaneous Tier 2 5 years of service Monthly for life 60 1.092%-2.418% 7% 8.961% 2%-2.7% 12% 21.925% Miscellaneous Tier 3 5 years of service Monthly for life 62 1%-2.5% 5.75% 8.961% Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $6,922,802 and $7,329,321 for the safety and miscellaneous plans respectively in fiscal year 2019. 66 101