Agda Pkt 2025.03.10 Joint SA PFA

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Page 7 of 9 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org PRIORITY REGISTRATION CITY RECREATION PROGRAM The Tentative Agreement incorporates an existing side letter which provides employees with a discount and priority registration to enroll their children in qualifying child-based recreation programs offered by the City’s Parks, Recreation and Community Services Department. EMPLOYEE CONTRIBUTIONS TO RETIREMENT SYSTEM Currently, employees in the Tier 1 pension plan (2.7%@55 formula), are required to contribute the full member contribution of 8% of pensionable compensation to CalPERS, plus an additional 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. Effective the first full pay period following City Council approval of a successor MOU in 2025, the additional pension cost share of 5% for pension tier 1 will be reduced to 2%. Effective the first full pay period following February 1, 2026, the additional pension cost share of 2% for pension tiers 1 will be reduced to 1%. Effective the first full pay period following February 1, 2027, the additional pension cost share of 1% for pension tier 1 will be reduced to 0%. At such time, employees in the Tier 1 pension plan will continue to contribute the full member contribution of 8% of pensionable compensation as the employee member contribution to CalPERS. Currently, employees in the Tier 2 pension plan (2%@60 formula) are required to contribute the full member contribution of 7% of pensionable compensation as the employee member contribution to CalPERS, plus an additional 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 12% of pensionable compensation. • Effective the first full pay period following City Council approval of a successor MOU in 2025, the additional pension cost share of 5% for pension tier 2 will be reduced to 2%. • Effective the first full pay period following February 1, 2026, the additional pension cost share of 2% for pension tier 2 will be reduced to 1%. • Effective the first full pay period following February 1, 2027, the additional pension cost share of 1% for pension tier 2 will be reduced to 0%. At such time, employees in the Tier 2 pension plan will continue to contribute the full member contribution of 7% of pensionable compensation as the employee member contribution to CalPERS. Currently, employees in the Tier 3 pension plan (PEPRA 2%@62 formula) are required to 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 5% of pensionable compensation towards the City’s pension contribution in accordance with California Government Code section 20516(f). New members are subject to the provisions of the PEPRA, including provisions governing reportable compensation. • Effective the first full pay period following City Council approval of a successor MOU in 2025, the additional pension cost share of 5% for pension tier 3 will be reduced to 2%. • Effective the first full pay period following February 1, 2026, the additional pension cost share of 2% for pension tier 3 will be reduced to 1%. • Effective the first full pay period following February 1, 2027, the additional pension cost share of 1% for pension tier 3 will be reduced to 0%. At such time, employees in the Tier 3 (PEPRA) pension plan will continue to contribute the full member contribution of one-half (1/2) of the total normal cost for pension as the employee member contribution to CalPERS. 6.G. - Page 7 of 151 198