MEMORANDUM OF UNDERSTANDING WITH THE CULVER CITY POLICE OFFICERS ASSOCIATION JULY 1, 2025, THROUGH JUNE 30, 2028. - Flipbook - Page 32
ARTICLE FOUR
III.
1.
Unit employees defined as new members by PEPRA are covered
under the 2.7% at age 57 retirement formula. New members shall
be 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 is currently 12.25%.
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.
CalPERS COST SHARING
The employer contribution rate is established and adjusted annually by the
CalPERS Board. In FY 19-20, the Culver City employer safety contribution rate is
59.33%. The City and POA have agreed that unit employees shall pay half of the
employer contribution rate in excess of 50%, up to a maximum of 5% of the
employer contribution (i.e. for FY 19-20, Classic employees will pay 4.66% of the
employer rate). Effective in the first pay period following Council adoption of this
MOU, the maximum contribution for all unit employees, shall be fourteen percent
(14%). For New Members only, if the required one-half of the total normal cost of
the plan as determined by CalPERS exceeds fourteen percent (14%), the New
Member shall make the required one-half of the total normal cost contribution, as
referenced in Section B. above.
This Cost Sharing arrangement shall be made in accordance with California
Government Code Section 20156 (f). Contributions made by unit employees shall
be on a pre-tax basis. It is expressly understood and agreed 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
acknowledge and agree that the City shall have no liability to any individual unit
employee or the collective bargaining unit should any of the aforementioned
Entities reject treatment of said contributions as pre-tax.
POA MOU 2025-2028
57132141.1/005528.00065
Page 30
