Agda Pkt 2024.11.25. Joint SA PFA

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47 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, minus the employee cost share reflected herein. Employees enrolled in Tier 1 (3% @ 50) and Tier 2 (3% @ 55) are required to contribute nine percent (9%) of pensionable compensation as the employee member contribution, plus an additional cost share of seven percent (7%) of pensionable compensation toward the City’s pension contribution in accordance with California Government Code Section 20516, for a total of sixteen percent (16%) of pensionable compensation. Three percent (3%) of the total seven percent (7%) listed above will be considered cost sharing in accordance with Section 20516(a) of the California Government Code. The remaining four percent (4%) being paid toward the employer cost of retirement will continue in accordance with Section 20516(f) of the Government Code. The four percent (4%) cost-sharing in accordance with Section 20516(f) of the Government Code, which was suspended August 2926, 2024, 2021, shall resume effective the pay period following January 23, 2023 September 9, 2024 and end August 29, 202725, 2024. Based on the mutual intent of the parties, for the sole purpose of applying retroactivity for 2024 MOU implementation, in the event the retroactive application of the pension cost share for Tier 1 and Tier 2 employees between September 9, 2024 and December 1, 2024 exceeds the amount owed to such employees as a result of the retroactive application of the 2024 cost of living adjustment between August 26, 2024 and December 1, 2024, Tier 1 and Tier 2 employees will not be required to repay the difference to the City. Employees defined as “new members” in Tier 3 (2.7% @ 57) are required to contribute one-half of the normal cost for pension as determined by CalPERS in accordance with California Government Code Section 7522.30. All such employee contributions toward employer cost of retirement will be made on a pre-tax basis to the extent permitted by law. The contributions shall not be credited to the employee account at CalPERS and shall not be reimbursed to the contributor by the City at any time for any reason. If beginning on or after the first full pay period of September 1, 2013, the employer cost of retirement for the bargaining unit falls below thirty-seven percent (37%) at any time, the employee contribution toward the employer cost of retirement will be reduced by one percent (1%) for each full one percent reduction in the employer rate below 37%. 14.5 414(h)(2) Internal Revenue Service Code Effective September 1, 1999, the City shall implement the provisions of 414(h)(2) for the term of this M.O.U., so long as those provisions [414(h)(2)] remain 6.I. - Page 59 of 84 289