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10 <br /> <br />3. For overall performance rated as ‘3’ Meets Expectations, no monetary <br />incentive payment. <br /> <br />4. For overall performance rated as ‘2’ Below Expectations, no monetary <br />incentive payment. <br /> <br />5. For overall performance rated as ‘1’ Significantly Below Expectations, no <br />monetary incentive payment. <br /> <br />B. Upon an employee failing to receive a rating of "Significantly Exceeds Expectations" <br />in their Annual Performance Evaluation, the supervisor shall promptly prepare a <br />written document which details objectives the employee must meet in order to <br />receive a "Significantly Exceeds Expectations" rating for that evaluation period and <br />provide that document to the employee. The employee’s evaluation will be held in <br />abeyance for a period no longer than ninety (90) days, allowing the employee time to <br />attempt to achieve the objectives. During this time any Performance Based Salary <br />Adjustment for an “Exceeds Expectations,” if awarded, shall not be processed. If the <br />employee fails to achieve a rating of "Significantly Exceeds Expectations" within the <br />ninety (90) day period, they will not be eligible for the “Significantly Exceeds <br />Expectations” bonus for that rating period. <br />C. Application of Guidelines <br /> <br />1. Any one-time incentive payment granted under this plan is not an increase in <br />base salary and no salary rate range applicable to an employee shall be <br />changed or deemed to have been changed by reason of such payment. <br />However, such incentive payment for Classic CalPERS members as <br />allowable under CCR Section 571a will be reported to CalPERS as special <br />compensation for calculation towards retirement. <br /> <br />2. In the event that CalPERS determines that such payments do not meet the <br />definitions listed in CCR Section 571a as special compensation to be reported <br />to CalPERS, the City will convert the incentive payment for eligible <br />employees to a meritorious step on the salary range as set forth in section <br />4.9(C)(7). <br /> <br />3. An employee that is deemed to be a “New CalPERS Member” is not eligible <br />to have the incentive payment reported to CalPERS as special compensation. <br />See Government Code section 7522.34(c) and PERS circular 200-064-17 <br />dated December 6, 2017, a bonus is not “PERSable” compensation for new <br />members. <br />  <br />  <br />City Council 25 – 12 12/2/2025