Memorandum of Understanding with Unit 12 - Dpa - State of California

C. The table below compares the current First Tier age benefit factors to the improvedfactors that the proposed legislation would place in the part of the Government Codeadministered by CalPERS.AGE AT RETIREMENT CURRENT FACTORS PROPOSED FACTORS50 1.092 1.10051 1.156 1.28052 1.224 1.46053 1.296 1.64054 1.376 1.82055 1.460 2.00056 1.552 2.06357 1.650 2.12558 1.758 2.18859 1.874 2.25060 2.000 2.31361 2.134 2.37562 2.272 2.43863 and over 2.418 2.500D. There will be factors for attained quarter ages, such as 52 ¾, that will be included in theimplementing legislation. These improved age benefit factors will apply for service renderedon and after the effective date of the memorandum of understanding between the State andthe Union. The improved factors will also apply to past service that is credited under theFirst Tier and the Modified First Tier.E. The amount of member contributions required of employees who will be covered underthese new factors will continue to be 5 percent of monthly compensation in excess of $513.11.2 First Tier Eligibility for Employees in Second TierA. The Union and the State (parties) agree that the legislation implementing this agreementshall contain language to allow employees who are currently in the Second Tier retirementplan to elect to be covered under the First Tier, as described in this article. The partiesfurther agree that the provisions of this article will be effective only upon the CalPERS boardadopting a Resolution that will employ, for the June 30, 1998 valuation and thereafter, 95%of the market value of CalPERS’ assets as the actuarial value of the assets, and to amortizethe June 30, 1998 excess assets over a 20 year period beginning July 1, 1999. The partiesagree to jointly request the CalPERS board to extend the 20 year amortization period in theevent the cost of these benefits or unfavorable returns on investments results in anincreased employer contribution by the State.70BU 12(99-01)