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<br />9 <br /> <br />4826-7904-2280v7/200434-0005 <br />TABLE 1 <br />City of Santa Ana <br />CalPERS Pension Plans – Summary of Benefit Provisions <br />Miscellaneous Plan <br /> Classic PEPRA <br />Benefit formula 2.7% @ 55 2.0% @ 62 <br />Hire date Prior to January 1, 2013 On or after January 1, 2013 <br />Retirement age 50-60+ 52 – 67+ <br /> <br /> <br />Safety Plan <br /> Classic PEPRA <br />Benefit formula 3.0% @ 50 2.7% @ 57 <br />Hire date Prior to January 1, 2013 On or after January 1, 2013 <br />Retirement age 50+ 50-57+ <br /> <br /> <br />Source: City’s Fiscal Year 2020 Annual Financial Report. <br />California Public Employees’ Pension Reform Act of 2013 (PEPRA) <br />Employees hired prior to January 1, 2013 who have remained under continuous employment with a <br />CalPERS agency are considered “Classic” employees. California Public Employees’ Pension Reform Act of <br />2013 (“PEPRA”) adjusted the benefit formulas, required employee contribution, calculation of benefits and <br />maximum pay, as well as other benefits for employees hired on and after January 1, 2013, who were not <br />previously CalPERS members or have left employment with a CalPERS agency for more than 6 months. PEPRA <br />employees receive the following benefit formulas: (i) 2.0% at age 62 formula for Miscellaneous employees; and <br />(ii) 2.7% at age 57 for Safety employees. PEPRA employees are required to pay 50% of the total (annual) <br />normal cost rate, and are required to make the full amount of required employee contributions themselves under <br />Benefits for such employees are calculated on the highest average annual compensation over a consecutive 36- <br />month period. Retroactive benefits increases are also prohibited, as are contribution holidays, and purchases of <br />additional non-qualified service credit. <br />PEPRA also capped pensionable income as noted below. Maximum amounts are set annually, subject <br />to adjustment in accord with the Consumer Price Index. The following table sets forth the maximum pensionable <br />income for Classic and PEPRA employees of the City. <br />City of Santa Ana <br />CalPERS Pension Compensation Limits for <br />Calendar Year 2021 (Classic and PEPRA members) <br /> Classic PEPRA <br />Maximum Pensionable Income $290,000 $153,671 <br /> <br />Source: CalPERS Payroll Circular Letter 200-001-21. <br />Additional employee contributions, limits on pensionable compensation and higher retirement ages for <br />new members as a result of the passage of PEPRA are expected to reduce the City’s unfunded pension lability <br />and potentially reduce City contribution levels in the long term.