WHEREAS - Watsonville California

1.2.1 Effective the first full payroll period following adoption of this
agreement by the Council, the base salary of the Administrative
Services Director classification shall be increased by 5% in order to
maintain salary parity with related classifications in the Management
Unit.
1.3 Retirement Contribution
1.3.1 Miscellaneous Employees Retirement Contribution. For the term of
this agreement, the City agrees to contribute to the California Public
Employees’ Retirement System (CalPERS) on behalf of each Unit
miscellaneous employee, seven percent (7%) of the employee's
compensation upon which retirement contributions are calculated
(hereinafter "7%"). Effective the first full payroll period beginning after
January 1, 2007 the City contribution shall be reduced to four percent
(4%) of the employee’s compensation.
1.3.2 Public Safety Employees Retirement Contribution. For the term of
this agreement, the City agrees to contribute to CalPERS on behalf of
each Unit public safety employee, nine percent (9%) of the employee's
compensation upon which retirement contributions are calculated
(hereinafter "9%"). Effective the first full payroll period beginning after
January 1, 2007 the City contribution shall be reduced to six percent
(6%) of the employee’s compensation.
1.3.3 Effective upon ratification of this agreement, the City shall begin
reporting the four percent (4%) retirement contribution for
Miscellaneous members and the six percent (6%) retirement
contribution for Public Safety members of the Management Unit as
special compensation. Pursuant to Section 20636 (c)(4) of the
California Government Code, these retirement contributions shall then
be considered compensation for retirement purposes.
1.3.4 Said retirement contributions for miscellaneous and public safety
employees shall be considered deferred compensation, not salary, and
shall be credited to the Unit employee's retirement account. Any future
income tax obligation resulting from these contributions shall be the
exclusive responsibility of the employee. If the Internal Revenue
Service changes its current position and determines that such
contributions constitute salary, not deferred compensation, any
resulting tax obligations shall be the exclusive responsibility of the
employee and the City shall not be held responsible therefore.
1.3.5 Retirement Tax Deferment. The City shall maintain the IRS Sec.
414(h)(2) provision allowing employees to make employee retirement
contributions with pretax (tax deferred) dollars.
Management 2009-2010 MOU CC Draft
5/21/2009 1:40 PM