Agda Pkt 2025.03.10 Joint SA PFA

Browse Search

00059814-1 14 sixty-two (62) formula retirement plan in accordance with Government Code Section 7522.20, based on the average of three (3) years of employment, in accordance with Government Code Section 7522.32. 15.2 Employee and Employer Contributions to the Retirement System Employees enrolled in Tier 1 (2.7% at 55) will contribute the full member contribution of eight percent (8%) of pensionable compensation as the employee member contribution, plus an additional seven percent (7%) of pensionable compensation toward the City’s pension contribution in accordance with California Government Code Section 20516, for a total of fifteen percent (15%) 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 seven percent (7%) for pension tier 1 will be reduced to five and one quarter percent (5.25%). • Effective the first full pay period following October 1, 2025, the additional pension cost share of five and one quarter percent (5.25%) for pension tier 1 will be reduced to four percent (4%). • Effective the first full pay period following October 1, 2026, the additional pension cost share of four percent (4%) for pension tier 1 will be reduced to two and three-quarters’ percent (2.75%). At such time, employees in the Tier 1 pension plan will contribute 2.75% plus the full member contribution of eight percent (8%) of pensionable compensation as the employee member contribution to CalPERS. Employees enrolled in Tier 2 (2% at 60) will contribute the full member contribution of seven percent (7%) of pensionable compensation as the employee member contribution, plus an additional seven percent (7%) of pensionable compensation toward the City’s pension contribution in accordance with California Government Code Section 20516, for a total of fourteen percent (14%) 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 seven percent (7%) for pension tier 2 will be reduced to five and one quarter percent (5.25%). • Effective the first full pay period following October 1, 2025, the additional pension cost share of five and one quarter percent (5.25%) for pension tier 2 will be reduced to four percent (4%). • Effective the first full pay period following October 1, 2026, the additional pension cost share of four percent (4%) for pension tier 2 will be reduced to two and three-quarters’ percent (2.75%). At such time, employees in the Tier 2 pension plan will contribute 2.75% plus the full member contribution of seven percent (7%) of pensionable compensation as the employee member contribution to CalPERS. Employees enrolled in Tier 3 (2% at 62) shall pay the rate prescribed by the California Public Employees’ Retirement System (CalPERS) for employee contributions to CalPERS in accordance with California Government Code Section 7522.30, plus an additional seven percent (7%) of pensionable compensation toward the City’s pension contribution in accordance with California Government Code Section 20516. New members shall be subject to the provisions of the Public Employee Pension Reform Act (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 seven percent (7%) for pension tier 3 will be reduced to five and one quarter percent (5.25%). • Effective the first full pay period following October 1, 2025, the additional pension cost share of five and one quarter percent (5.25%) for pension tier 3 will be reduced to four percent (4%). • Effective the first full pay period following October 1, 2026, the additional pension cost share of four percent (4%) for pension tier 3 will be reduced to two and three-quarters’ percent (2.75%). At such time, employees in the Tier 3 (PEPRA) pension plan will contribute 2.75% plus the full member contribution of one-half (1/2) of the total normal cost for pension as the employee member contribution to CalPERS. Employee cost sharing of employer 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. 6.I. - Page 28 of 119 442