1. The City's contribution to PERS on behalf of all affected employees shall be seven percent (7%).

2. In implementing the provisions of paragraph 1 of this section, each affected employee shall be obligated to contribute any increase in employee contributions that should hereafter result from any state or federal enactment or action, which increases the total employee contribution rate above its current level of seven percent (7.0%).

3. Amounts contributed by the City pursuant to this section shall be credited to the affected employee's PERS account as if made solely by the employee.

4. The City currently has a contract with the Public Employees Retirement System (PERS) to provide miscellaneous employees with a 2% at 55 retirement benefit, Section 21354 of the California Government Codes. Benefit increase paid for by the employees 3.544% payroll contribution from July 1, 1996 to June 20, 2002 (1995-1997 MOU).

CONTRIBUTION TO PERS FOR THE 2.5% @ 55 FORMULA
The parties agree to implement the 2.5% @ 55 PERS Retirement Formula effective June 16, 2008, under the conditions as provided in this section.

The cost of the 2.5% @ 55 retirement enhancement is determined to be 4.8%. The parties agree to split the cost of the 2.5% @ 55 PERS retirement formula. Effective July 1, 2005, the City and each represented employee will contribute 2.4% of salary to PERS. It is understood by the parties that the employees will continue to contribute as described above until the City determines otherwise.

The 4.8% contribution will be submitted to PERS in June of each fiscal year.

The City and BCEA acknowledge that there will be an additional 1% added to the PERS employee rate at the time of the 2.5% @ 55 benefit is implemented. The parties agree that by April 30, 2007, prior to the implementation of the benefit, the method by which the 1% will be paid to PERS will be determined.

The parties further acknowledge that the 2.5% formula cannot be implemented unless and until it is approved by all the miscellaneous groups.