Item 17 - Memorandum of Understanding with the Santa Ana Management Association and Resolution for Associated Unrepresented Classifcations

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ARTICLE XIII 13.0 RETIREMENT 13.1 General. The terms of the existing contract between the City and California Public Employees' Retirement System (CaIPERS) governing the City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to snake contributions to CAPERS in accordance with its contract with CAPERS for employees covered by said contract as amended. 13.2 Deferred Retirement. The City will continue to make payment to CalPERS on behalf of each employee, in an amount necessary to pay one hundred percent (100%) of their individual retirement contribution which is currently equal to eight percent (8%) of base salary, effective January 1, 2009. Such payments shall be credited to the individual employee's CalPERS account as Employer Paid Member Contribution (EPMC). Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this MOU 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. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by eight percent (8%). For the purpose of reporting an employee's compensation to CalPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 Credit for Unused Sick Leave. A. Effective June 7, 2023, the maximum total unused sick leave that can be converted by an employee covered by this MOU to additional service credit at the time of retirement shall be ten (10) eight (8)hour working days equal to eighty(80) hours. Employees hired on or after a contract amendment between the City and CalPERS shall not be eligible to convert unused sick leave to CaIPERS for service credit. B. Effective the date of City Council adoption of this 2025-2028 MOU, the maximum total unused sick leave that can be converted by an employee covered by this MOU to additional service credit at the time of retirement shall be forty-four (44) eight (8) hour working days equal to three hundred fifty-two (352) hours. Employees hired on or after a contract amendment between the City and CalPERS shall not be eligible to convert unused sick leave to CAPERS for service credit.