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WHEREAS - Watsonville California

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pay under this section will be provided to the Association.<br />

Employees who receive the five percent premium, above, may<br />

irrevocably opt into the $250/month stipend specified in (a) above.<br />

1.3.3 Level II Premium Pay:<br />

In addition to the Level I stipend the City will designate a limited number of<br />

staff as Level II Bilingual Translators. Such Level II Bilingual Translators<br />

shall perform written translations that are viewed by a large audience of city<br />

residents (i.e. City mailers, City Council minutes, inserts in City utility bills,<br />

etc.)<br />

(a)<br />

(b)<br />

Level II Translators shall receive an additional $100/month.<br />

To evidence competency as a Level II Translator, employees must<br />

pass a skills-based test administered by the City to demonstrate<br />

competency in written translation.<br />

1.4 Employee Retirement Contribution<br />

1.4.1 For the term of this Agreement, the City agrees to contribute to the<br />

<strong>California</strong> Public Employees Retirement System (CalPERS) on<br />

behalf of each employee, seven percent (7%) of the employee's<br />

compensation upon which retirement contributions are calculated<br />

(hereinafter "7%"). Effective the first full pay period in January<br />

2007 the City contribution shall be reduced to four percent (4%) of<br />

the employee’s compensation. Said contributions shall be<br />

considered deferred compensation, not salary, and shall be credited<br />

to the employee's retirement account. Any future income tax<br />

obligations resulting from these contributions shall be the exclusive<br />

responsibility of the employee. In the event the Internal Revenue<br />

Service shall change its current position and determine that such<br />

contributions constitute salary, not deferred compensation, any<br />

resulting tax obligations shall be the exclusive responsibility of the<br />

employee and the City shall not be held responsible therefore.<br />

For purposes of salary comparison, the employee retirement<br />

contribution paid by the City shall be considered as part of base pay.<br />

1.4.2 Special Compensation:<br />

The City shall report the employees’ four percent (4%) retirement<br />

contribution as special compensation. Pursuant to Section 20636<br />

(c)(4) of the <strong>California</strong> Public Employees Retirement Law, this four<br />

percent (4%) retirement contribution shall then be considered<br />

compensation for retirement purposes.<br />

1.4.3 Retirement Tax Deferment:<br />

Confidential 2009-2010 MOU CC Draft<br />

5/21/2009 1:49 PM<br />

4

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