MEMORANDUM OF UNDERSTANDING WITH THE CULVER CITY POLICE MANAGEMENT GROUP JULY 1, 2025, THROUGH JUNE 30, 2028. - Flipbook - Page 28
ARTICLE FOUR
employees shall pay 5% of pensionable income (their cap) and the City shall
pay the remaining 57% of pensionable income.
G.
TAX LIMITATIONS
Cost Sharing contributions shall be made on a pre-tax basis unless and until
a Private Letter Ruling (PLR) by the Internal Revenue Service is issued to
the City by the Internal Revenue Service designating that the payments must
be post-tax.
The City does not warrant that this contribution is "qualified" for tax deferral
and is not to be held liable for such tax payments as may be determined
assessable.
The City has retained specialized legal counsel in order to render a written
opinion as to whether or not said employee contributions to the employer
contribution rate can be considered on a “pre-tax” basis. The rendered legal
opinion is supportive of City treatment of said contributions as “pre-tax”;
therefore, the City shall take the steps necessary, including adoption of
appropriate City Council resolution(s), to allow the Payroll Section to treat
these distributions as “pre-tax”. It is expressly understood and agreed to by
the parties that the City has no authority or jurisdiction by which to bind
CalPERS, the Internal Revenue Service (IRS), the Franchise Tax Board or
any other agency (collective “Entities”) to a determination that such
contributions are indeed “pre-tax”. Thus, the parties agree and
acknowledge that the City shall have no liability to any individual unit
employee or collective bargaining unit, should any of the aforementioned
Entities reject treatment of said contributions as “pre-tax”.
III.
PRE-RETIREMENT
PERSABLE
A.
DISTRIBUTION
OF
LEAVE
ACCRUALS
–
NON-
IRREVOCABLE NOTICE
A unit employee giving irrevocable notice of his/her intent to retire within
three (3) years (36 calendar months) may have accrued leaves (which are
otherwise payable upon retirement) distributed in equal installments to
his/her paychecks over the months preceding retirement, with a minimum
duration of six (6) months and a maximum duration of thirty-six (36) months.
PMG MOU 20222025-2025
Page 26
57222818.1/005528.00067
2028
