SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 721 (SEIU) - PART-TIME CIVIL SERVICE (2019-2022)

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Such payments are not increases in base salary and no salary rate range applicable to any employee shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and, thus will not withhold Federal or State income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service (IRS) confirming that these payments are deferred compensation, not ordinary income. 2. "New" Members As required by PEPRA, the City shall participate in equal cost sharing by paying fifty percent (50%) of the normal cost, as established by Ca1PERS in its annual valuation report. B. Employee Contributions 1. "Classic" Members The employee contribution rate shall be eight percent (8.0%) of compensation earnable. All employee contributions are paid towards the employer portion of the City's Ca1PERS contribution. This payment shall be paid in accordance with Government Code §20516(f) as cost sharing. 2. "New" Members As required by PEPRA, the employee contribution rate shall be fifty percent (50%) of the normal cost, as rounded to the nearest quarter of a percent by CaIPERS in its annual valuation. C. Pre -Taxable Benefit To the extent permitted by Ca1PERS and IRS regulations, the City shall make any employee contributions as a pre-tax deduction. I t.3 Ca1PERS Benefit Options The City contracts with CalPERS to provide the following additional optional benefits: A. Credit for Unused Sick Leave (Government Code §20965) Upon retirement, an employee may have accumulated, but unused, sick leave converted to additional service credit at the rate of 0.004 years of service credit for every eight (8) hours of unused sick leave, up to a maximum of sixteen hundred (1600) hours. 2019-2022 MOU City of Santa Ana & SEIU Part -Time Civil Service Employees Unit Page 51