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6.4.A. - Page 16 Caltfomia Pubiic Employees' Retirement System Actuartal Office P.O. Bax 1494 Sacxemento, CA 95812-1494 �! TTY: (916) 795-3240 �E� (888) 225-7377 phone • (S76) 795-2744 fax www.catpers.ca.gov June 09, 2011 Employer Number: 0008 Employer Name: aTY OF REDWOOD QTY Rate Plan: SAFE7Y PLAN Re: New 396 � 55 and 3-yr FAC Seoond Tier for locat Safety Plan m�nbers withtn a Non-pooled Plan (Section 20475: Dtfferer�t Level of Benetits Pivvhied for New Employees) Dear Requesbor. /ls reques0ed, �npioyer oontributlon �abe Informatlon on ya�r proposed seaond der follows. If you ars aware of others letenesbed in thls IMormatfon (I.e. payroll staff, o�unty wurt empioyees, port dL4tricls. eta). Please lnfarm theM. The Infom�atJon Is based on the ]une 30, 2009 annual valuatlon. Th�ne will be no Immediate employer c�ntribution rabe Impad from this amendment Uldmabely, however, your employer normal aost will decrease. If tf�e mbc ot aWve member er�try ages were the same for both tt�e curtent oontlnuing ftrst tler employees and tfie new seaond tler employees, the decrease !n tfie empioyer rate would be 3.19�0. The employ� rate reductlon wfll oocur graduaUy, beglnning on July 1, 2013, if there are second tler employees hlred on or before June 30, 2011. For fiscal years 2013J2014 and beyond, the prv�ected wmulaWe amount of rare reductlon you can �cpect from Intr�odudng a seaond tier ts equal to tl�e ratlo of your seoond tler payroll to your t�al plan payroll two and a half years earlter. For example if i/10 of your Safety Plan members were in sec�d tier � lune 3D, 2011 and the u/dmat� eYpc�cl�d ncm�a/ cast de,�aaase was 3.1°Yo, the cumulative rate redudion you can expect by tt�e 2013/2014 fiscai year would be 1/10 x 3.196 � 0.319b. To tnftfabe an amendment Lo the tantract, ptease aompl�e tfie attached ele�lon form and ma� or FAX (916) 795- 3005 the form witf� a letter to the Contrads MatrM�ance Unit, IndlcaUng your wish b� contrad for Section 20475 (Different Level of Benefits) and Werrtifj►tng the group(s) bo whkh the beneflt redudlon appltes. In secttons 20463 (b) and (c), tt�c Callfomla Perbpc Employees' Retirement Law requtres the goveming body of a public agency within flve days of reoeipt of tl�e conVact amendment aost analysis, to provide each �npbyee organizatlon witf� a copy of tt�e analys(s. If this cost analysls was requested by an employee organizatlon, the employee organization Is also requtred witt�in five days of reaelpt of tt�e analysls, to provide a aopy of tfie analysis to t�e publlc agency. If you have quesdons, please call (888) CaIPERS (225-737n. . �� .'�.-trr d��.�� /+ � �y�' Davld �uBOls� PSA, MAAA �' Sentor Penslon Actuary, CaIPERS