R-038-23 Amending the Regulations Governing Compensation and Benefits of Non-Represented Exexcutive Group Employees

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1 Final compensation shall be determined by using the "highest single year of compensation" 2 pursuant to California Government Code section 20042. 3 (b) New Members. 4 Pursuant to PEPRA, new safety members hired on or after January 1, 2013 shall be enrolled in the 2.7% at 57 retirement plan. PEPRA requires new safety members to 5 contribute fifty percent (50%) of the annual actuarially determined normal cost attributable to 6 the applicable retirement plan in which they are enrolled (i.e., 2.7% at 57 retirement plan), rounded to the nearest quarter of 1 percent. This mandatory employee contribution amount is 7 set by CalPERS on an annual basis. Final compensation shall be determined based on a 8 period of thirty-six (36) consecutive months as required by PEPRA. PERSable compensation will be determined in accordance with PEPRA and regulations adopted by CalPERS. 9 For miscellaneous members, each member shall pay the full amount of the normal member 10 contribution. Any Executive Group member that established CalPERS membership prior to 11 the implementation of the PEPRA in connection with City employment or that otherwise establishes "classic member" status, as defined in Section 579.1 of the California Code of 12 Regulations, shall be subject to one of the following pre-PEPRA retirement formulas determined on the basis of their original date of hire: 2.7% at 55 or 2.5% at 55. The normal 13 member contribution applicable to members participating in these retirement formulas 14 continues to be eight percent (8%). Any Executive Group member that is considered a "new member" as defined in PEPRA shall be subject to the PEPRA retirement formula for non- 15 safety"new members"which is: 2% at age 62, with a minimum benefit of 1% at age 52 and a 16 maximum benefit of 2.5% at age 67. The normal member contribution for "new members" will be determined by CalPERS in accordance with PEPRA. 17 Section 2. Retirement — Employee Contributions. Effective the first pay period 18 following March 1, 2011, Executive Group employees shall pay the full amount of the 9 employee's contribution to PERS (currently, eight percent(8%) for"miscellaneous"members 1and nine percent(9%) for"safety"members). 20 Section 3. Retirement — PERS Fourth Level Survivor Benefit. The City will 21 provide PERS 1959 Fourth Level Survivor benefits to all Executive Group miscellaneous 22 employees, as set forth in Sections 21571 - 21583 of the Government Code. 23 Section 4. Retirement—Retiree Medical. 24 A. Effective October 1, 2003, Executive Group employees who retire, with either 25 a service or disability retirement, from City employment may, at the retiree's discretion, choose to enroll in any available City-provided health insurance plan. Employees who retire 26 shall be eligible for City-paid medical insurance coverage until eligible for Medicare based 27 on the formula set forth below. Upon becoming eligible for Medicare, the employee may maintain medical insurance with the City by paying one hundred percent (100%) of his/her 28 premium and any related spouse or dependent* premium. If the retiree is ineligible for Medicare benefits, the City will continue to pay the premiums under the formula set forth below, provided the employee remains eligible for coverage under the City-provided health insurance plan. The retiree is responsible for any portion of the health care premium (including any applicable spouse or dependent coverage) not covered by this formula.