MEMORANDUM OF UNDERSTANDING WITH THE CULVER CITY POLICE MANAGEMENT GROUP JULY 1, 2025, THROUGH JUNE 30, 2028. - Flipbook - Page 27
ARTICLE FOUR
responsible for paying the employee contribution rate of one-half of
the total normal cost of the plan as determined by CalPERS.
2.
Unit employees shall be responsible for the full CalPERS employee
contribution payment which was 11.75% per the CalPERS 2020
Safety Actuarial Valuation Report.
3.
The City has adopted the CalPERS resolution in accordance with
Internal Revenue Code section 414(h)(2) to ensure that the
employee contribution is made on a pre-tax basis.
D. SOCIAL SECURITY EXCLUDED
This does not include Social Security nor any special or additional
contribution to PERS contracted for by the employee.
E.
COST SHARING
In accordance with Government Code §20516(f), “Classic Member” unit
employees hired prior to January 1, 2012 shall share the costs of optional
benefits. Said unit employees shall pay a total of 9% of the PERS employer
contribution rate. Participation in Cost Sharing shall be mandatory and said
contributions shall be designated as employee contributions.
F.
ADDITIONAL COST SHARING
Employer contribution requirements are calculated and adjusted annually
by CalPERS. The total employer contribution requirement is comprised of
the Employer Normal Cost Rate (a percentage) and the Employer Payment
of Unfunded Liability (a fixed dollar amount). The Employer Payment of
Unfunded Liability is converted to a percentage by dividing by CalPERS
projected payroll. Adding the Employer Normal Cost Rate to the percentage
equivalent of the Employer Payment of Unfunded Liability results in the
Total Employer Contribution Rate. The Total Employer Contribution Rate
for FY 22-23 is 69.13%. In the event that the employer contribution rate
exceeds 50%, the City and PMG have agreed that unit employees shall pay
50% of the increase up to a maximum of 5%. For example, should the
employer contribution rate increase to 62% of pensionable income, the
PMG MOU 20222025-2025
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57222818.1/005528.00067
2028
