40.1.             Employees hired before August 7, 2011. Effective March 13, 2005, the County implemented the two percent at fifty-five and one-half (2%@55.5) retirement enhancement (Government Code Section 31676.14) for employees in Plans 1, 2 or 4.

The enhancement applies to all future service and all service back to the date of employment pursuant to the Board of Supervisor’s authority under Government Code section 31678.2(a). Government Code section 31678.2(b) authorizes the collection, from employees, of all or part of the contributions by a member or employer or both, that would have been required if section 31676.14 had been in effect during the time period specified in the resolution adopting section 31676.14, and that the time period specified in the resolution will be all future and past general service back to the date of employment. Based upon this understanding and agreement, employees will share in the cost of the 31676.14 enhancement through increased retirement contributions by way of payroll deductions and shall contribute three percent (3%) of compensation earnable as defined in SamCERA regulations. The County paid a general wage increase of pay as set forth in Section 5.1 of this MOU, and it is understood and agreed that this wage increase will help employees pay the increased retirement contributions.

Implementation of the improvements to the retirement plans described in this section shall be made in accordance with the policies and practices of the Retirement Board and any disputes relative to implementation procedures shall be settled by the Retirement Board, whose decision shall be final.

Plan 3: Non-contributory plan, Plan 3 is closed to all employees hired on or after December 23, 2012. If an employee is already in Plan 3, the employee has the option to transfer to Plan 2 or 4 after providing the equivalent of five (5) years of consecutive service (ten thousand four hundred (10,400) hours) to the County. These employees may elect to transfer by entering into an agreement with the San Mateo County Employees’ Retirement Association (SamCERA) to pay all of the incremental employee and employer contributions that would have been required if the employee had been in Plan 2 or Plan 4 since the date of employment, plus interest.

40.2.             Employees hired between August 7, 2011 and December 31, 2012. The retirement benefit options shall be:

Plan 5: (1.725% @ 58) (pre‐enhancement tier) with no three percent (3%) cost share. Current Plan 4: Two percent at fifty-five and one-half (2% @ 55.5) (as described in 41.1 above) is closed to new employees hired on or after the effective date of the commencement of Plan 5. However, employees may transfer into Plan 4 after providing the equivalent of ten (10) years (twenty thousand eight hundred (20,800) hours) of service in Plan 5, and entering into an agreement with the San Mateo County Employee’s Retirement Association to pay all of the employee and employer contributions that would have been required if the employee had been in Plan 4 since the date of employment, plus interest.

Plan 3: Plan 3 is closed to all employees hired on or after December 23, 2012. If an employee is already in Plan 3 with the option to transfer to Plan 5 after providing the equivalent of five (5) years of service (ten thousand four hundred (10,400) hours) to the County that option is for future Plan 5 service only. After providing the equivalent of ten (ten) years of service (twenty thousand eight hundred (20,800) hours) to the County, employees may elect to transfer to Plan 4 by entering into an agreement with the San Mateo County Employees’ Retirement Association (SamCERA) to pay all of the incremental employee and employer contributions that would have been required if the employee had been in Plan 4 since the date of employment, plus interest.

40.3.             Employees hired on or after January 1, 2013

Employees hired on or after January 1, 2013 will be placed into Plan 5 or Plan 7 (two percent at sixty-two (2%@62)) depending upon their legacy eligibility as determined by SamCERA.

40.4.             Employer Pick-Up

Historical Information: Effective August 7, 2011, the County will pick up 75% of employees’ statutorily required retirement contributions. The employer pick-up of the employee’s retirement contribution shall not apply to the additional contribution described in Section 41.3 below. Effective March 1, 2015, employer payment of the employee’s share of retirement cost (Employer Paid Member Cost- EPMC) described in Section 41.2 shall be eliminated and replaced with a five percent (5%) salary offset.

Historical Information: In the agreement beginning April 13, 2003 the County’s increase of the County’s pick up from 50% to 100% was made in lieu of a 2% salary increase. In the agreement beginning on September 5, 2010, the County’s decrease of the County’s pick up from 100% to 75% was made without a salary increase.

40.5.             Retirement COLA

Employees hired on or after August 7, 2011 will pay fifty percent (50%) of the Retirement COLA cost as determined by SamCERA. COLA costs are included in the Plan 7 statutory rate.  

Effective July 3, 2016, all employees will pay fifty percent (50%) of the Retirement COLA cost as determined by SamCERA.

Effective July 5, 2015, employees will receive a one percent (1%) salary increase to offset the additional employee payment toward retirement COLA.

40.6.             Deferred Compensation Automatic Enrollment for New Employees

Subject to applicable federal regulations, the County agrees to provide a deferred compensation plan that allows employees to defer compensation on a pre-tax basis through payroll deduction.

Effective January 1, 2016, each new employee will be automatically enrolled in the County’s Deferred Compensation program, at the rate of one percent (1%) of their pre-tax wages, unless he or she chooses to opt out or to voluntarily change deferrals to greater than or less than the default one percent (>1%) as allowed in the plan or as allowed by law. The pre-tax deduction will be invested in the target fund associated with the employee’s date of birth. All deferrals are fully vested at the time of deferrals; there will be no waiting periods for vesting rights.

Effective July 1, 2019, all employees will be enrolled in the deferred compensation program at the rate of one percent (1%) of their pre-tax wages, unless he or she chooses to opt out or to voluntarily change deferrals to greater than or less than the default one percent (>1%) as allowed in the plan or as allowed by law. The pre-tax deduction will be invested in the target fund associated with the employees’ date of birth. Deferrals are fully vested at the time of deferrals; there will be no waiting periods for vesting rights.

Concurrent with Cost of Living Adjustments (COLA) the deferrals will be increased in one percent (1%) increments to a maximum of five percent (5%).

The County will provide training to employees regarding how to make voluntary changes to deferrals.