THE CITY OF NEWPORT BEACH KEY AND MANAGEMENT
EMPLOYEES
COMPENSATION PLAN
July 12, 2025 through June
30, 2028
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ATTACHMENT A
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K&M COMP PLAN 2022-20252025-2028
SECTION 1. INTRODUCTION
The following represents the salary and benefit program established by the City Council for Key and Management. The Key and Management Compens ation Plan shall in no manner be interpreted as a guaranteed or implied contract between the City and any employee or group of employees.
The Key and Management Group is divided into five categories:
Executive Management
Administrative Management
Administrative Management-Safety
Division Management
Confidential
Appendix A lists all classifications in each category.
SECTION 2. COMPENSATION
A. SALARY
1. Non-Safety:
Key and Management non-safety employees will receive the following cost of living adjustments, as provided in Appendix A:
Effective the first day of the pay period following January 1, 2022July 12, 2025, salary schedules will be adjusted to provide a two five percent (2.05%) cost of living adjustment to base salaries.
Effective the first day of the pay period following January July 1, 20232026, salary schedules will be adjusted to provide a three four percent (3.04%) cost of living adjustment to base salaries.
Effective the first day of the pay period following January July 1, 20242027, salary schedules will be adjusted to provide a three percent (3.0%) cost of living adjustment to base salaries.
Effective the first day of the pay period follo wing January 1, 2025, sa lary schedules will be adjusted to provide a three percent (3.0%) cost of living adjustment to base salaries.
2. Safety:
Key and Management safety employees will receive the following adjustments, as provided in Appendix A:
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Cost-of-livingSalary adjustments for the Police Chief classifi cation shall occur at the same time and be the same percentage as cost-of-livingsalary adjustments received by Police Lieutenants pursuant to the Police Management Association MOU employees during the term of this Plan.
Cost-of-livingSalary adjustments for the Police Chief may be modified by the City Council through an individual employment agree ment approved by the City Counc il, in a City Council approved Key & Management Compensation Plan, as amended, or in a Resolution adopted by the City Council.
Cost-of-livingSalary adjustments for the Assistant Police Chie f classification shall be tied to the cost-of-livingsalary adjustments received by Police Lieutenants pursuant to the Police Management Association MOU employees during the term of this Plan.
Cost-of-livinSalary adjustmentsg adjustments for the Fire Chief classifi cation shall occur at the same time and be the same percentage as the base salary increases received by the Administrative Division Chief classification pursuant to the Fire Management Association MOU employees during the term of this Plan. Cost-of-livingSalary adjustments for the Fire Chief may be modified by the City Council through an indi vidual employment agr eement approved by the City Council, in a City Counc il approved Key & Management Co mpensation Plan, as amended, or in a Resolution adopted by the City Council.
Cost-of-livingSalary adjustments for the Assistant Fire Chief classification shall be tied to the cost- of-livingsalary adjustments received by the Administrative Divis ion Chief classification pursuant to outlined in the Key & Management Compensation Pl anFire Management Association MOU during the term of this Plan.
Cost-of-livingSalary adjustments for the Assistant Chief, Lifeguard Operations classification shall be tied to the cost-of-livinsalaryg adjustments received by Lif eguard Management Association Battalion Chiefs during the term of this Plan.
Salary Schedule Adjustment
Effective the pay period which includes July 1, 2023, the City will add a new top step (“New Top Step”) to the salary schedules for all positions , except Executive Management positions, which shall be five percent (5%) more than the current top step (“Current Top Step”). The first step for all positions covered by the Plan currently in effect is not being eliminated.
With the following exception, step advancement thro ugh the salary ranges is unaffected by the addition of the New Top Step:
Employees who have been at the Cu rrent Top Step for longer than 12 months as of June 30, 2023, will advance to the New Top Step in the pay period which includes July 1, 2023.
Effective the pay period which includes July 1, 2023, the City will add five percent (5%) to the top of the salary ranges for Execut ive Management positions. The botto m of the salary ranges for Executive Management positions will not change. As noted below, advancement through the salary range for Executive Management positions is not automatic ; rather, movement is at the discretion of the City Manager.
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B. RANGE ADVANCEMENT
Advancement through the salary range varies depending on the Group to which the employee is assigned:
Executive Management - No steps; movement at the discretion of the City Manager.
Administrative Management – Six-step range with eligibility for merit step increases on an annual basis.
Administrative Management-Safety - Six-step range with eligibility for merit step increases on an annual basis.
Division Management - Six-step range with eligibility for merit step increases on an annual basis.
Confidential - Nine-step range with eligibility for merit step increases on an annual basis.
Salary steps are placed in five percent (5%) increments within the range for Administrative Management, Administrative Management-Safet y, Division Management, and Confidential groups.
C. PERFORMANCE REVIEWS AND ANNIVERSARY DATES
All Key and Management employees hired prior to December 31, 2001 will have a December 1, or first full pay period in December, anniversary date. Key and Managem ent employees hired after December 2001 will have an anniversary date based upon hire date. and hours of service.
All Executive Management performance evaluations will be reviewed by the City Manager prior to implementation of any range advancement.
D. BILINGUAL PAY
Upon determination by the Department Director that an employee's ability to speak, read and/or write in Spanish or other l anguage as approved, contributes to the Department, the employee shall be eligible to receive $150 per month (paid each pay period) in bilingual pay. The certification process will confirm the employee is fluent at the street conversational level in speaking, reading and/or writing Spanish or other approved language. Employees certif ied shall receive bilingual pay the first full pay period following certification.
The parties agree that to the extent permitted by law, the City shall report to the California Public Employees’ Retirement System (CalPERS) bilingual pay as Special Assignment Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or 571.1 (b)(3) Bilingual Premium.
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E. NON-EXEMPT OVERTIME AN D COMPENSATORY TIME OFF
Employees in non-exempt positions are eligible to receive overtime or compensatory time off.
FLSA overtime for non-exempt positions shall be paid at one-and-one-half (1½) times the employee’s regular rate of pay. The rate at which Non-FLSA Over time is calculated shall not include the City's Cafeteria Plan Allowance, the opt-out Cafeteria Plan A llowance, or any cash back an employee may receive from the Cafeteri a Plan Allowance by choosing benefits which cost less than the Allowance. Overtime work must be approved by the employee’s supervisor.
Compensatory time off for non-exempt positions shall be earned at the rate of one- and- one-half (1½) times for every overtime hour worked. Employees may accumulate up to eighty (80) hours of compensatory time off. Overtime hours worked in excess of the 80 hour compensatory time off bank will be paid out as overtime until the compensatory time o ff bank falls below the 80 hour cap.
F. JURY DUTY
A Key and Management employee called to serve as a juror shall notify his/her supervisor as soon as he/she is notified that he/she has to appear for duty. If an employee calls in the night before and finds out he/she has to report for jury duty the next day, the employee should send an email to his/her supervisor as soon as possible to let the supervisor know that the employee will be reporting to jury duty the following day. Key and Management em ployees of the City legally required to serve as a juror shall be entitled to leave with pay and all benefits for a period of up to sixty (60) days so long as his/her presence is legally required and the process outlined in the Employee Policy Manual is followed.
G. UNIFORM ALLOWANCE – PUBLIC SAFETY
As permissible by law, the City shall report to CalPERS bi-weekly the annual value of uniform allowance at the following rates:
Police Chief - $1,350
Assistant Police Chief - $1,350
Fire Chief - $1,519
Assistant Fire Chief - $1,519
Assistant Chief, Lifeguard Operations - $838
PERSCALPERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to the California Public Employees’ Retirement System (CalPERS) the uniform allowance for each employee as special compensation in a ccordance with Title 2, California Code of Regulation, Section 571(a)(5) Uniform Allowance. Notwithstanding the pr evious sentence, for “new members” as defined by the Public Employees’ Pension Reform Act (PEPRA) of 2013, the uniform allowance will not be reported as pensionable compensation to CalPERS. 11-8
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H. ONE-TIME PAYMENT
All Key and Management Employees (excluding Cit y Manager, City Attorney, City Clerk, Police Chief and Fire Chief) in paid stat us for the entirety of the firs t pay period following City Council adoption of this Plan in Fiscal Year 2021-22 will receive a one-time bonus in the amount of $2,000.
The payment is intended to be specific to the pay period in which it is paid and is to be considered part of the regular rate for this pay period only. This one- time payment does not meet the criteria under California Code of Regulations 571(b) as reportable compensation for retirement purposes.
This one-time payment is non- pensionable and will not be reported to CalPERS. The parties also agree that this payment is intended to be specific to the pay period in which it is paid and is to be considered part of the regular rate for this pay period only.
I. LUMP SUM BONUS (FY 2024-25)
Lump sum bonuses in the amount of One Thousand Dollars and No Cents ($1,000.00) will be paid to those Eligible Key and Management Employees that are employed by the City on each of the following dates, as set forth below:
a. Eligible Key and Management Employees employed by the City on August 27, 2024, will receive a lump sum bonus of One T housand Dollars and No Cents ($1,000) on September 13, 2024;
b. Eligible Key and Management Employees employed by t he City on October 1, 2024, will receive a lump sum bonus of One T housand Dollars and No Cents ($1,000) on October 11, 2024;
c. Eligible Key and Management Employees employed by the City on January 1, 2025, will receive a lump sum bonus of One T housand Dollars and No Cents ($1,000) on January 17, 2025;
d. Eligible Key and Management Employees employed by the City on April 1, 2025, will receive a lump sum bonus of One Thousan d Dollars and No Cents ($1,000) on April 11, 2025.
By adopting this Fifth Amendment to the Key and Management Plan, the City Council for the City of Newport Beach does not intend for the lump sum bonuses to be pensionable and the lump sum bonuses shall not be reported to CalPERS. Also, the City Council for the City of Newport Beach intends for the bonus payments to be specific to the pay period that the bonus payments are paid, and each lump sum bonus shall be considered part of the regular rate for the pay period in which it was paid only.
For purposes of this Section the term “Eligi ble Key and Mana gement Employees” shall mean
those Key & Management Employees occupying the following job classifications on the specific date set forth above: (1) Police Chief; (2) Assistant Police Chief; (3) Admini strative Assistant to Police Chief; (4) Police Support Services Administ rator; (5) Assistant Fi re Chief; (6) Assistant Chief Lifeguard Operations; (7) Emergency Medical Services Division Chief; (8) Fire Marshall; and (9) Administrative Assistant to Fire Chief.
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J. SCHOLASTIC ACHIEVEMENT PAY – PUBLIC SAFET
Y
H.
1. Police Safety
Absent an Employment Agreem ent or Resolution to the contrary, Key and Management polic
e safety employees are entitled to additiona l compensation in the form of Scholastic Achievement Pay as follows:
BA/BS – 7% MA/MS/JD – 8.5%
The parties agree that to the extent permitted by law, the Scholastic Achievement Pay in this section is special compensation and shall be reported to CalPERS as such.
2. Fire Safety
Absent an Employment Agreem ent or Resolution to the contrary, Key and Management fire safety employees are entitled to additional compensation in t he form of Scholastic Achievement Pay under the same terms and conditions as members of the Newport Beach Fire Management Association. If there are future changes to the Scholastic Achievement Pay Program as set forth in a council- approved MOU or side letter agreement with the Newport Beach Fire Management Association, the same program shall apply for Key and Management fire safety employees.
The parties agree that to the extent permitted by law, the Scholastic Achievement Pay in this section is special compensation and shall be reported to CalPERS as such.
3. Assistant Chief, Lifeguard Operations
Except as modified herein, the Assistant Chief of Lifeguard Operations shall be eligible for Scholastic Achievement Pay under the same terms and conditions as members of he Newport Beach Lifeguard Management Association. Scholastic Achievement Pay shall be include dinincluded in the Assistant Chief of Lifeguard Operations paycheck for the pay period immediately following approv al by the Fire Chief. It is the responsibility of the Assistant Chief of Lifeguard Operations to apply for Scholastic Achievement Pay. Approval of the application for Scholastic Achievemen t Pay shall not be unreasonably withheld or delayed, and the Assistant Chief of Lifeguard O perations shall not be entitled to receive Scholastic Achievement Pay prior to the date the application is approved even though the Assistant Chief of Lifeguard Operations may have been eligible prior to approval. If there are future changes to the Scholastic Achievem ent Pay Program as set forth in a council- approved MOU or side letter ag reement with the Newport Beach Lifeguard Management Association, the same program shall apply to the Assistant Chief of Lifeguard Operations.
The parties agree that to the extent permitted by law, the Scholastic Achievement Pay in this section is special compensation and shall be reported to CalPERS as such. 11-10
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SECTION 3. LEAVES
Employees hired or promoted into classifications in the Key and Management group shall be tied to the leave benefits provided to the Key and Management group at large.
A. HOLIDAYS – NON-SAFETY LEAVE
A. The following days shall be observed as paid holidays (i.e., employees shall have the day off with pay). With the exception of the “floating holiday” (where the employee chooses the day off), employees who are required to work on the holiday will rece ive their pay for the holiday and as either pay or flex leave for the number of hours worked on the holiday.
New Year’s Day January 1
Martin Luther King Day January – 3rd Monday
Washington’s Birthday February – 3rd Monday
Memorial Day May – Last Monday
Floating Holiday* July 1
Independence Day July 4
Labor Day Septembe r – 1st Monday
Veterans Day Novembe r 11
Thanksgiving Day Novembe r – 4th Thursday
Friday After Thanksgiving November – 4th Friday
Christmas Eve December 24 (last ½ of workday)
Christmas Day Decembe r 25
New Year’s Eve December 31 (last ½ of workday)
Holiday Closure – Up to 3 Days TBD based on closure dates
*The floating holiday (eight (8) hours of holiday leave) is awarded on July 1. The hours are added to the employees’ Flex Leave account.
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Holidays are paid based on the employee’s regul ar workday schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work nine hours, the employee is entitled to receive nine hours of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work eight hours, the employee is eligible to receive eight hours of holiday pay. If an employee must work on one of the holidays listed above (except the floating holiday), the employee may bank their holiday hours to flex, up to a maximum of eight hours per holiday.
1. Holidays listed above (except the floating hol iday) occurring on a Saturday shall be observed the preceding Friday. Holidays occu rring on a Sunday shall be observed the following Monday. (Half day holidays shall be observed prior to the observed holiday).
2. Holiday pay will be paid only to employees w ho are in paid status on the scheduled day before and scheduled day after a holiday or are on authorized paid leave (e.g. paid leave that has been reviewed and approved by the Department Director).
B. HOLIDAY CLOSUR E – NON-SAFETY
3. Holiday Closure – If the City Council approves a holiday closure for City Hall, the following applies:
a. Holiday Closure Pay. Employees will re ceive holiday closure pay for the days they would have normally been scheduled to work during the closure period, up to a maximum of three (3) days. The holiday clos ure pay is specifical ly for use during the approved holiday closure. Example: if, absent the closure, y our regular work schedule has you working two days during a closure, you will receive two days of holiday closure pay; you do not automatically get three days if your regular schedule does not call for it.
b. Working During a Holiday Closure – If an employee is required by their supervisor to work during a holiday closure, they may bank their holiday hours to flex, up to a maximum of eight hours for each day the em ployee is required to work during the holiday closure.
The Holiday Closure Pay aims to fairly com pensate members while ensuring operational needs are met during approved holiday closures.
B.C. HOLIDAYS – PUBLIC SAFETY
The provisions contained in this section apply to Administrati ve Management- Safety (Assistant Chiefs) who are required to work without regard to holiday based on assignment. Assistant Police Chiefs and Assistant Life GuardLifeguard Chiefs Said employees shall receive 3.7 hours per pay period of Holiday compensation as pay . Assistant Fire Chiefs shall receive 5.26 hours per pay period of Holiday compensati on as pay. Holiday pay will be and reported to PERSCalPERS as compensation earnable as defined in Government Code Sec. 20636. 11-12
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Effective July 12, 2025, the holiday benefit for the Key and Management safety employees shal l
be tied to the retirement contributions required by members of their respective safety management associations. If there are future changes to the holiday benefit, as set forth in a council-approved MOU, or side letter agreemen t, the same changes shall be made for Key and Management safety employees.
The parties agree, to the extent permitted by law, the compensation in this section is special
compensation for those employees who are norma lly required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) or Section 571.1 (b)(4) Holiday Pay.
C.D. FLEX LEAVE
Regular full-time employees in the Admini strative Management, Administrative Management- Safety, Division Management and Confidential categories enrolled in the flex leave program will accrue leave according to the below.
Years of Continuous
Service
Hours Accrued per
Pay Period
Annual
hours Maximum Allowable
Balance (hours)
1 but less than 5 6.00 156.00 468.00
5 but less than 9 6.61 171.86 515.58
9 but less than 12 7.23 189.98 563.94
12 but less than 16 8.15 211.90 635.70
16 but less than 20 8.77 228.02 684.06
20 but less than 25 9.38 243.88 731.64
25 and over 10.00 260.00 780.00
Spillover: Employees hired prior to July 1, 1996 shall be paid for accrued Flex leave in excess of 11-13
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the employee’s maximum accrual rate (spillover) provided that they utilized at least 80 hours Flex leave the previous calendar year. Employees with 16 or more years of continuous service are required to use 120 hours of Flex leave the previous calendar year.
Regular full-time employees in the Executive Management categories will accrue Flex leave according to the following schedule:
Years of Continuous
Service
Hours Accrued per
Pay Period Annual hours
Maximum Allowable
Balance (hours)
1 but less than 15
8.77 228 684.06
15 and over
9.69 252 755.82
Note: If an employee becomes sick in the first three months of employment, the City will advance up to three (3) months of accrued Flex leave time to be used for the illness only. If the employee terminates employment prior to three (3) months, the employee wil l repay the equivalent to the number of Flex leave days that were advanced to the employee.
Employees shall accrue three (3) months of Fl ex leave (as provided in the chart above) upon completion of three (3) months of continuous employment with the Cit y of Newport Beach, provided however, this amount shall be reduced by any Flex leave time advanced during the first three (3) months of employment.
1. Limit on Accumulation
Employees first hired, or rehired by the City subsequent to July 1, 1996, shall not be eligible for Flex leave spillover pay and shall not be entitled to accrue Flex leave in excess of the Flex leave accrual threshold.
2. Method of Use
Flex leave may not be taken in excess of that actually accrued, and in no case, except for illness, may it be taken prior to the completion of an employee’s initial probationary period.
The Department Director shall approve all requests fo r Flex leave, taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee.
D.E. SICK LEAVE
Key and Management employees employed by the City prior to initiation of the Flex leave program had separate sick and vacation leave banks. With the initiation of the Flex leave program, vacation 11-14
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leave was converted to Flex leave on an hour for hour basis and any sick leave hours remained in a bank to be used as provided in Section 11.2 (Sick Leave) of the Employee Policy Manual.
E.F. KIN CARE
Employees may use up to ½ of Flex leave accrued per year to provide care for any member of the employee’s immediate family in need of care due to illness or injury.
F.G. BEREAVEMENT LEAVE
Bereavement leave shall be defined as “the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family.”
Unit members shall be entitled to forty (40) hours of bereavement leave per calendar year per incident (terminal illness followed by death is considered one incident). Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. Leave hours need not be used consecutively, however they should be used in proximate time to the occurrence. For the purposes of this section, immediate family shall mean an employee’s father, mother, stepfather, stepmother, brother, sister, spous e/domestic partner, child, stepchild, grandparents, grandchild and the employee’s spouse/domestic partner’s father, mother, brother, sister, child, and grandparents and grandchild. The provisions of this Section shall not diminish or reduce any rights a covered employee may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave.
H. REPRODUCTIVE LO SS LEAVE
I. Eligible employees are entitl ed to five unpaid days for each reproductive loss event. Multiple reproductive loss events are covered, up to a maximum of 20 days of reproductive loss leave within a twelve-month period.
G.J. ADMINISTRATIVE LEAVE
For Key and Management employees who are exempt from overtime, Administrative Leave may be granted, for a minimum of 8 hours and a maxi mum of 80 hours, as recommended by the Department Director with the appr oval of the City Manager. The determination as to how much Administrative Leave will be gran ted will be based upon the number of overtime hours normally worked each year by the individual exempt employee. Administrative Leave does not accrue and therefore has no cash value. As such, it cannot be carried over from year to year.
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H.K. LEAVE SELLBACK
Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before t he pay period which includes December 15 of each calendar year, an employee may make an irrevo cable election to cash out accrued flex leave which will accrue in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and/or the pay period which includes December 15 for those Flex Leave benefits that have been accrued during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours.
Hours sold back will be subject to the Retiree H ealth Savings Plan Part C contributions, per Section 2 (a), Retiree Medical Benefits. For the term of this Com pensation Plan the Part C contributions for Flex will be at twenty percent (20%).
SECTION 4. BENEFITS
A. INSURANCE
1. Medical
Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution amounts listed below, the City shall contribute the minimum CalPERS participating employer’s contribution towards medical insurance for employees enrolled in a CalPERS medical plan, per Government Code Section 22892.
The City’s contribution towards the Cafeteria Plan is $1,725$2,025 per month (plus the minimum CalPERS participating employer’s contribution).
Employees shall have the option of allocating Ca feteria Plan contributions towards the City’s medical, dental and vision insurance/programs, provided that any cash-out option complies with IRS Section 125 requirements.. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods.
Employees appointed to Key and Management positions prior to April 13, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt-out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis will receive $1,000 per month in taxable cash paid biweekly. For these same employees, if they elect medical co verage and spend less than $1,725 (plus the minimum CalPERS participating employer’s contribution) of the City contribution provided above, the difference shall be paid to the employee as taxable cash biweekly. the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. 11-16
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Employees
appointed to Key and M anagement positions on or after April 13, 2019 who elect to opt out of medical coverage offe red by the City because they hav e provided proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive $500 per month in taxable cash paid biweekly. For these same employees, if t hey elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided.
The preceding language as applied to the following scenarios:
1. Part-time employee hired by the City prior to April 13, 2019 but not appointed as a full- time employee into a Key and Management classification until on or after April 13, 2019 – this employee is subject to the $500 opt-out amount and does not receive cash back if the medical coverage elected is less than the City contribution.
2. Full-time Key and Management employee hired by the City prior to April 13, 2019 who later drops down to part-time and then is reappointed to a Key and Management classification as a full-time employee – th is employee is subject to the $500 opt-out amount and does not receive cash back if the medical coverage elected is less than the City contribution.
3. Full-time employee hired by the City prior April 13, 2019 who later transfers into a Key and Management classification from another unit – if the employee was not subject to the $500 opt-out amount and/or no cash back in the unit from which they are transferring, they will receive the benefit of $1,000 opt-out and/or cash back if the medical coverage elected is less than the City contributionthan $1, 725 (plus the minimum CalPERS participating employer’s contribution)..
2. Vision Insurance
Employees
may purchase vision insurance upon hire and during benefits open enrollment.
3. Dental Insurance
The existing or comparable dental plans shall be maintained as part of the City’s health plan offerings as agreed upon by the Benefits Information Committee.
4. Disability Insurance
The City shall provide disability insurance with the following provisions:
Short-Term Disability Long-Term Disability
Benefit Amount 66.67% of covered wages 66.67% of covered wages 11-17
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Maximum Benefit $1,846 weekly $15,000 monthly
Waiting Period 30 calendar days 180 calendar days
Employees
shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement th e disability benefit with paid leave once the waiting period has been exhausted.
Employees are responsible for the payment of the disability insurance cost in the amount of one (1%) percent of base salary as a post-tax deduc tion for this benefit. Effective the first premium payment after the City Council adoption of the Plan, the CityThe City will paypays for this benefit and the 1% base salary employee deduction will cease.
B. ADDITIONAL
BENEFITS
1. IRS Section 125 Flexible Spending Account
The City provides a qualified Section 125 Fl exible Spending Account which authorizes an employee to reduce taxable income for payment of allowable expenses such as childcare and medical expenses.
2. Life Insurance
The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee’s annual salary up to a maximum of $50,000. At age 70 the City-paid life insurance is reduced by 50% of the pre-70 am ount. This amount remains in effect until the employee terminates from City employment.
3. Employee Assistance Program
Key and Management employees are eligible to receive EAP benefit s, which provide confidential counseling and education on work and life issues, subject to provider guidelines.
4. Executive Management Physicals
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Employees
in those classifications designated as Executive Management shall receive a reimbursement of up to one thousand dollars ($1,000.00) per year for an executive management physical examination.
C. RETIREMENT BENEFITS
1. California Public Employees Retirement System (CalPERS) PERS a. Retirement Formula
The City contracts wi
th California Public Employees Retirement System ( CalPERS) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits:
Tier 1 (“Legacy”): For employees hired by the City on or before November 23, 2012, the retirement formula for safety members shall be 3%@50 and the retirement formula for non- safety members shall be 2.5%@55, calculated on the basis of the highest consecutive 12 month period selected by the employee.
Tier 2 (“Classic”): For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula for safety members shall be 2%@50 (Lifeguard/Fire) or 3%@55 (Police), and the retirement formula for non-safety members shall be 2%@60, calculated on the basis of the highest consecutive 36 mo nth period selected by the employee as set forth in Government Code section 20037.
Tier 3 (“PEPRA”): For employees first hired by the City on or after January 1, 2013, who are new members, the safety retirement formula shall be 2.7%@57 and the non-safety retirement formula shall be 2%@62, calculated on the basis of t he highest consecutive 36- month period selected by the employee provided for by the Public Em ployees’ Retirement Law at Government Code section 7522.25(d).
b. Employee Contributions
Non- Safety:
Key and Management
employees will contribute toward their PERSCalPERS retirement benefit.
Employee retirement contributi ons that are in addition to the normal CalPERS Member Contribution shall be calculat
ed on base pay, special pays, and other pays normally reported as “PERSable” compensation (known either as compensation earnabl e or pensionable compensation) and will be made on a pre-tax basis through pa yroll deduction, to the extent allowed by law.
Tier I:
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Under a separate agreement and ratified via a cont ract amendment with CalPERS in 2008, Tier I employees shall contribute 2.42% compensati on earnable (as cost sharing) per Government Code section 20516(a).
Tier I Employees shall contribute the statutory CalPERS Member Contribution equal to eight percent ( 138%) of compensation earnable as follows: 8% as the statutory member contribution,
2.42% as cost sharing per Government Code se ction 20516(a) and 2.58% as cost sharing per Government Code section 20516(f)..
Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I Employees shall contribute 11.5% of com pensation earnable as follows: 8% as the stat utory member contribution, 2.42% as cost sharing per Government Code section 20516(a) and 1.08% of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate su nsets at the end of the last fu ll pay period in December 2025.
Accordingly, ffective the pay period that includes January 1, 2026, Tier I Employees shall contribute 13% of compens ation earnable as follows: 8% as the statutory member contribution,
2.42% as cost sharing per Government C ode section 20516(a) and 2.58 % of compensation earnable as cost sharing per Government Code section 20516(f).
Tier II
Tier II employees shall contri bute the statutory CalPERS Mem ber Contribution equal to seven percent (7%) of compensation earnable, plus an additional one per cent (1%) of compensation earnable toward retirement costs under Gove rnment Code Section 20516(f), for a total contribution of 8% of compensation earnable.
Employees shall contribute 13% of compensati on earnable as follows: 7% as the statutory member contribution and 6% of compensation earnable as cost sharing per Government Code section 20516(f).
Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier II Employees shall contribute 11.5% of com pensation earnable as follows: 7% as the stat utory member contribution and 4.5% of compens ation earnable as cost shari ng per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2025. Accordingly, effective the pay period that includes January 1, 2026, Tier II Employees shall contribute 13% of compensation earnable as follows: 7% as the statutory member contribution and 6% of compensation earnable as cost sharing per Government Code section 20516(f).
Tier III:
The minimum statutory employee contribution for employees in Tier III, subject to the provisions of the Public Employees’ Pension Reform Act (PEPRA) equals 50% of the “total normal cost”,and is calculated annually for possible adjustments as provided in the CalPERS valuations.
In addition to the statutorily required 50% contribution of total no rmal costs, Tier III employees shall contribute an additional amount of pensionable compensation toward retirement pursuant to Government Code section 20516(f) so that their contribution equals a total of 8% of pensionable 11-20
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compensation. However, the employee contribution shall never fall below the statutory required contribution.
Tier III Employees - The minimum statutory empl oyee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code Section 20516(f), for a total employee contribution of 13% of pensionable compensation.
Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), for a total employee contributio n that is no less than 11.5% of pensionable compensation (i.e., Tier III employees pay the greater of 11.5% or 50% of the “total normal cost”). This reduction in the employee contribution rate su nsets at the end of the last fu ll pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), for a total employee contribution that is no less than 13% of pensionable compensation (i.e., Tier III employees pay the greater of 13% or 50% of the “total normal cost”).
If in future fiscal years the member contribution rate for non-safety employees in Tier III shall become greater or less, as determined by CalPERS valuations, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13% of pensionable compensation.
Provided however, that the empl oyee contribution shall never fall below the statutorily required contribution.
Safety:
A. Police Safety
Absent an Employment Ag reement or Resolution to the contra ry, the employee contribution for police safety members will depend on what Tier the employee is in as defined above.
Tier I and II members will contribute the full stat utory member contribution, equal to 9% of compensation earnable, plus an additional 54.6% of compensation earnable toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 14.6%.13.6%
Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9%, plus an additional
4.1% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 13.1%. This reduction in the employee contribution rate sunsets at the end of the last fu ll pay period in December 2025. Accordingly, effective the pay 11-21
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period that includes January 1, 2026, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9% compensat ion earnable, plus an additional 5.6% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f) for a total contribution of 14.6%.
Tier III members: In addi tion to the statutorily required 50% contribution of total normal costs (“member contribution rate”), Ti er III members shall contribute an additional percentage of pensionable compensation toward retirement costs as cost sharing pursuant to Government Code § 20516(f), for a total employee contribution that is no less than 13.6% of pensionable compensation (i.e., Tier III employees pay the greater of 13.6% or 50% of the “total normal cost”).
The employee contribution shall never fall below the statutorily required contribution.so that their total contribution is 14.14.6%.
Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pur suant to Government Code section 20516(f) for a total employee contributio n that is no less than 13.1% of pensionable compensation (i.e., Tier III employees pay the greater of 13.1% or 50% of the “total normal cost”). This reduction in the employee contribution rate su nsets at the end of the last fu ll pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less t han 14.6% of pensionable compensation (i.e., Tier III employees pay the greater of 14.6% or 50% of the “total normal cost”).
If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuat ions, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 14. 6% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution.
Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for Key and Management police safety employees shall be as noted above and shall not be tied to the retirement contributions required by members of the Police Management Association.
Effective the pay period that includes January 1, 2026July 12, 2025 , the CalPERS retirement contributions for the Key and Management police safety employees shall be tied to the retirement contributions required by member s of the Police Management Associ ation. If there are future changes to those employee retirement contributions, as set forth in a council-approved MOU, or side letter agreement, the same changes shall be made for Key and Management police safety employees.
B. Fire Safety
Absent an Employment Ag reement or Resolution to the contra ry, the employee contribution for fire safety members will depend on what Tier the employee is in as defined above. 11-22
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Tier I and II members will contribute the full stat utory member contribution, equal to 9% of compensation earnable, plus an addi tional 4.5% of co mpensation earnable toward retirement costs as permitted under Government Code § 20516(f), for a total contribution of 13.5%
Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9%, plus an additional 3% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 12% This reduction in the employee contribution rate sunsets at the end of the last fu ll pay period in December 2025. Accordingly, effective the pay period that includes January 1, 2026, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9% of compensation earnable, plus an additional 4.5% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f) for a total contribution of 13.5%
Tier III members: In addi tion to the statutorily required 50% contribution of total normal costs (“member contribution rate”), Ti er III members shall contribute an additional percentage of pensionable compensation toward retirement costs as cost sharing pursuant to Government Code § 20516(f ), for a total employee contribution that is no less than 13.5% of pensionable compensation (i.e., Tier III employees pay the greater of 13.5% or 50% of the “total normal cost”).
The employee contribution shall never fall below the statutorily required contribution.
so that their total contribution is 13.5%
Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pur suant to Government Code section 20516(f) for a total employee contribution that is no less than 12% of pensionable compensation (i.e., Tier III employees pay the greater of 12% or 50% of t he “total normal cost”). This reduction in the employee contribution rate sunset s at the end of the last full pay period in December 2025.
Accordingly, effective t he pay period that includes January 1, 2026, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 13.5% of pensionable compensation (i.e., Tier III employees pay the greater of 13.5% or 50% of the “total normal cost”).
If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuat ions, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equal s 13.5% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution.
Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for Key and Management fire safety employees shall be as noted above and shall not be tied to the retirement contributions required by members of the Fire Management Association. Effective the 11-23
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pay period that includes January 1, 2026 July 12, 2025, the CalPERS retirement contributions for the Key and Management fire safety employees shall be tied to the retirement contributions required by safety members of the Fire Management Association. If there are future changes to those employee retirement contributions, as set forth in a council-approved MOU, or side letter agreement, the same changes shall be made for the Key and Management fire safety employees.
C. Assistant Chief, Lifeguard Operations
The employee contribution for the Assistant Ch ief of Lifeguard Operat ions will depend on what Tier the employee is in as defined above.
Tier I and II members will contribute the full stat utory member contribution, equal to 9% of compensation earnable, plus an addi tional 4.6% of co mpensation earnable toward retirement costs as permitted under Government Code § 20516(f), for a total contribution of 13.6%.
Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9%, plus an additional
3.1% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 12.1%. This reduction in the employee contribution rate sunsets at the end of the last fu ll pay period in December 2025. Accordingly, effective the pay period that includes January 1, 2026, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9% of compensation earnable, plus an additional 4.6% of compensation earnable toward retirement costs as permitted under Government Code section 20616(f), for a total contribution of 13.6%.
Tier III members: In addi tion to the statutorily required 50% contribution of total normal costs (“member contribution ratee”0), Tier III members shall contribute an additional percentage of pensionable compensation toward retirement costs as cost sharing pursuant to Government Code § 20516(f), so that their total contribution isfor a to tal employee contribution that is no less than
13.6% of pensionable compensation (i.e., Tier III employees pay the greater of 13.6% or 50% of the “total normal cost”). The employee contribution shall never fall below the statutorily required contribution.
Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pur suant to Government Code section 20516(f) for a total employee contributio n that is no less than 12.1% of pensionable compensation (i.e., Tier III employees pay the greater of 12.1% or 50% of the “total normal cost”). This reduction in the employee contribution rate su nsets at the end of the last fu ll pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the “total normal cost”. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 13.6% of pensionable compensation (i.e., Tier III employees pay the greater of 13.6% or 50% of the “total normal cost”).
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If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuat ions, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equal s 13.6% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution.
Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for the Assistant Chief of Lifeguard Operations classification shall be as noted above and shall not be tied to the retirement cont ributions required by members of the Lifeguard Management Association. Effective the pay period that includes January 1, 2026July 12, 2025 , the CalPERS retirement contributions for the Assistant Chief of Lifeguard Operations classification shall be tied to the retirement contributions required by members of the Lifeguard Management Association. If there are future changes to those employee retirement contributions, as set forth in a council- approved MOU, or side letter agreement, the same changes shall be made for the Assistant Chief of Lifeguard Operations.
c. Optional Benefits
The City’s contract with CalPERS also provides the 4th Level 19 59 Survivor Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit (Mi scellaneous only), Military Service Credit, 2% Cost of Living Adjustment and the pre-reti rement option settlement 2 death benefit (Section 21548).
2. LIUNA Supplemental Pension
Key and Management employees are members of the LIUNA Supplemental Pension Fund (“Plan”). Effective in the pay period which includes January 1, 2019, the Plan will be funded exclusively by contributions from the members. The City will not make any contributions to the Plan. In addition, as there are increases (which typically occur annually) to the costs (whether identified as employer or employee contributions) to fund the Plan, they will be made by Key and Management employees (i.e., the participants in the Plan). The City is not responsible for, nor does it make any representation regarding, the payment of benefits to Key & Management employees.
Employees cannot receive the co ntributed amounts directly instead of having them paid to the Plan. Participation in the Plan will continue to be mandatory for Key & Management employees.
Key & Management employees who leave City employment prior to vesting in the LIUNA pension plan will have no right to the return of amounts contributed, or other recourse against the City concerning LIUNA.
D. RETIREE MEDICAL BENEFITS
This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - “MERP”). Each member has an individual RHS account 11-25
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(“Account”), which accumulates based on the category they fall under (s ee Program Structure below). Funds from the Account may be used for eligible health care expenses after separation, retirement or a change in person nel status to a position that does not receive the RHS benefit.
These changes in personnel status will activate the Account and allow funds to be withdrawn until the Account balance is depleted. Since the plan rest ricts all distributions to be spent for health insurance premiums and health care expenses, as defined by the Internal Revenue Code Publication 502, § 213(d) and the Plan document the contributions, fund investment earnings and benefit payments (when withdrawn from the Account) are not taxable when posted. Additionally, certain contributions may only be deposited upon re tirement from the City. The categories are provided below.
1. Background
In 2005, the City replaced the pr evious “defined benefit” retiree medical progr am with a new “defined contribution” program. During the transition, employees and (then) existing retirees were administratively classified into different categories. The benefit is structured differently for each of the categories. The categories are as follows:
a. Category 1 - Employees who become eligible for the benefit after January 1, 2006. This may include new hires, rehires and par t-time employees appointing to full - time-time status.
b.
b.c. Category 2 - Employees who were active and enrolled in the previous defined benefit program as of Decem ber 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus years of service as of January 1, 2006 was less than 50 (46 for safety employees).
d.
c.e. Category 3 - Employees who were active and enrolled in the previous defined benefit program as of Decem ber 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus years of service as of January 1, 2006 was 50 or greater (46 for safety employees).
2. Eligibility
All covered employees are eligible for the RH S benefit. However, if an eligible employee separates or changes positions to a bargaining unit which does not offer this benefit, the member is no longer eligible for any contributions to the plan and their Account will be activated for use and withdrawal of funds by the employee (or former employ ee). This means if a Key and Management employee subsequently reappoints to a position which offers the RHS benefit, they will be enrolled in “Category 1” and must revest in the program. Any remaining balance deposited during prior eligibility will remain in the Account.
Employees who become ineligible (no longer covered by a City employee association, union or plan offering the RHS benefit) before vesting forfeit the City’s Part B contribution. Said employee will only receive Part A and Part C contributions. The only exceptio n is an active employee who separates before vesting due to an approved industrial disability. In such case, the employee will receive exactly five years’ worth of Part B contributions, using the employee’s age and 11-26
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compensation at the time of separation for calc ulation purposes. This amount will be deposited into the employee’s Account at the time of separation.
3. Account Contributions
Account contributions are categorized as Part A, Part B and Part C.
Part A contributions are a mandatory, automatic 1% employee contribution deducted each pay period and deposited into the Account through payroll. Deductions begin the pay period in which the employee becomes eligible and are reported to CalPERS as pensionable.
Part B contributions require a five-year vesting period which begins when the employee becomes eligible for the RHS benefit. At the conclusion of the vesting period, the City will credit the first five years’ worth of Part B contributions into the Account (interest does not accrue during that period and the contributions are calculated at $2.50 per month for each year of the employee’s full-time service plus age) and begin to contribute $2.50 per month for each year of the employee’s full- time service plus age (e.g. 30 years old and five years of service would be a factor of 35. $2.50 x 35 = $87.50 per month). This factor is updated annu ally in the pay peri od including January 1.
Part B contributions are not reported to CalPERS as pensionable.
The City’s Part B contributions during active employment c onstitute the minimum CalPERS participating employer’s contribution (i.e., the CalPERS stat utory minimum amount) towards medical insurance after retirement. For retirees selecting a CalP ERS medical plan, or any other plan with a similar employer contribution requirement, the required empl oyer contribution will be deducted from the employer’s contribution to the retiree’s account.
Part C contributions are deposit ed into an employee’s Account when flex leave hours are converted to taxable cash through leave cash-out or at the time of separat ion or status change.
Spillover pay does not qualify for Part C contribut ions. Part C contributions are not reported to CalPERS as pensionable.
The City Council determines the level of cont ribution for all Key and Management employees, subject to the following constraints. All Key and Management employees must participate at the same level. The participation level shall be spec ified as a percentage of the flex leave balance available in each employee’s leave bank at the time of separation from the City , or status change, or as a percentage of the flex leave balance being cashed out.
For example, if the City Coun cil designates 30% Part C c ontributions, then each Key and Management employee leaving the City , or cashing out eligible leave at any other time, would have the cash equivalent of 30% of the amount that is cashed out deposited to their RHS Account on a pre-tax basis. The remaini ng 70% would be paid in cash as taxable income. Individual employees do not have the option to deviate from this breakout.
Part C contributions are designated to be twenty percent (20%) flex leave.
Nothing in this section restricts taking leave for time off purposes. 11-27
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4. Benefit
a. Category 1: Employees in this category ma ke Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions are received at time of separation or status changethrough cash outs. No contributions are made to Category 1 participants after separation. b.
b.c. Category 2: Employees in this categor y make Part A and receive Part B contributions (subject to vesting) autom atically each pay period through payroll deductions. Part C contributions are received at time of separation or status changethrough cash outs. No contributions are made to Category 2 participants after separation.
If a Category 2 participant retires from the City with a minimum of 5 consecutive years of full-time service, the City will contribute to the participant’s Account a one-time contribution equal to $100 per month for every month the participant contributed to the previous “defined benefit” plan up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City and becomes a CalPERS annuitant of the City of Newport Beach. No interest will be earned in the interim.
Category 2 participants with less than five years of continuous contributions into the prior defined benefit plan as of January 1, 2006: only the years of service after January 1, 2006 count towards Part B contributions upon vesting. Contributions in years before 2006 will be paid out as stated in the above paragraph.
c.d. Category 3: Employees in this category ma ke Part A contributions automatically each pay period through payroll deductions. Category 3 participants do not receive any Part B contributions. Part C contributions are received through cash outsseparations or status changes.
If an eligible Category 3 participant retires from the City of Newport Beac h, the City will deposit $400 per month into the Account upon retirement, up to a maximum of $4,800 per year, less the CalPERS minimum required employ er contribution as determined by CalPERS annually, which shall continue if the employee or surviving spouse/qualified dependent is still living. To offset this expense to the City, active Category 3 participants will contribute an additional $100 per month to the plan until retirement. There is no cash out option for these funds and they cannot be spent in advance of receipt.
Category 3 participants also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City. No interest will be earn ed in the interim. Contributions are contingent upon remaining a CalPERS annuitant of the City.
5. Administration
Vendors have been selected by the City to administer the program . The contract expense for 11-28
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program-wide administration by t he vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee.
The City’s Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan.
E. TUITION REIMBURSEMENT
Subject to the limitations below, Key and Management employees attending accredited community colleges, colleges, trade schools or universitie s, or recognized professional organizations or agencies may apply for reimbursement of the cost of tuition, books, fees or other student expenses for approved job–r elated coursework, seminars or professional development programs. Travel expenses are not e ligible for reimbursement. The maximum annual benefit is $2,000 per fiscal year. Reimbursement is cont ingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director or designee.
F. AUTO ALLOWANCE
Positions in the Executive Management and Administrative Management groups may be eligible for a limited auto allowance, between $200 and $400 per month, based on operational necessity and upon the determination of the City Manager.
G. 401(a) DEFINED CONTRIBUTION PLAN
Upon City Council adoption of this Plan, empl oyees in those classifications designated as Executive Management shall have a 401(a) defined contribution plan account set up by the City which is subject to the rules of Internal Revenue Code section 415(b). The City shall contribute to each eligible employee’s 401(a) defined contribution plan account each pay period as follows:
Effective the first day of the pay period following City Council adopt ion of this Plan, or as soon thereafter as is reas onably practicable, Tt he City shall contribute a total of two percent (2%) of base salary to each employee’s 401(a) defined contribution plan account on a pre- tax basis.
Employees are immediately 100% vested in all employer contributions made to their 401(a) defined contribution plan account.
Under federal law, there is an annual maximum contribution which may be made to an employee’s 401(a) defined contribution plan account. If an employee’s account contributions reach the annual maximum, the City will stop making contributions for the remainder of the calendar year and will not owe the employee any additional compensation related to this section.
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SECTION 5. MISCELLANEOUS
A. PROBATIONARY PERIOD
Newly hired employees shall serve a twelve (12)-month probationary period. Any employee who is promoted shall be required to successfully complete a six (6) month probationary period in the new position. All Executive Management and Administrative Management – Safety positions serve as at-will employees as that term is defined in California Labor Code section 2922 and/or the City of Newport Beach City Charter Article VIII, Section 801 and can be released from employment at any time without cause or due process.
The City Manager, City Attorney and City Clerk serve at the pleasure of the City Council.
B. DIRECT DEPOSIT
All newly hired employees shall participate in the payroll direct deposit system.
C. EXEMPT AND NON- EXEMPT STATUS
All classifications in Key and Management are cla ssified as exempt from overtime under the FLSA, with the following exceptions:
Administrative Assistants to the Police Chief, Fi re Chief, City Attorney, Assistant City Manager, and Human Resources Director
Administrative Assistant-Conf
idential, Fiscal Specialist -– Confidential, Human Resources Specialist, and I/II Paralegal
D.
ALTERNATIVE WORK SCHEDULES
The City agrees to maintain flex-scheduling where it is currently operating successfully. Any new flex scheduling must be approved by the City Manager prior to implementation.
Employees
assigned to the 9/80 work schedule will have alternating Fridays off with the City determining which employees will work on each al ternating Friday to ens ure effective coverage of the work. These employees’ FLSA workweeks shall begin four hours after the start time of their alternating regular day off and end exactly 168 hours later. 6666666666
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E. TELECOMMUTING PROGRAM
E.
The City agrees to a telecommuting program that will provide for 80 hours per calendar year of
telecommuting hours to be used in accordance with City policy. The provisions of the policy shall not trigger any right of grie vance or appeal. The City will agree to explore a telecommuting program that will provide for 80 hours of telecommuting hours per year to be used in accordance with City policy. The terms and conditions ar e subject to management approval before the program will be implemented. Additionally, the provisions of the policy shall not trigger any right of grievance or appeal. This will be a pilot program which shall terminate upon the expiration of this Plan.
F.
F. OVERPAYMENT
Employees will be notified by Payroll or Human Resources prior to the recovery of overpayments on paychecks. Recovery of more than 15% of net pay will be subject to a repayment schedule established by the appointing authority under guidelines issued by the Finance Department or Human Resources. Such recovery shall not e xceed 15% per month of disposable earnings, as defined by State law, except a mutually agreed upon accelera ted payment plan for faster recovery.
Recoupments under this section shall be limited to forty-eight (48) months. H owever, nothing in
this section is intended to preclude the City fr om seeking recoupment of overpayments due to fraud or other knowing concealment through any available legal forum.
G. INCENTIVES
The City Manager may authorize incentives to aid in retention of Key and Management employees. Incentives may include those inducements identified in Section 6 of the City’s Employee Policy Manual related to recruitments or appointments, including additional paid leave, educational expenses, or deferred compensation contributions.
H. EMPLOYEE POLICY MANUAL
The City of Newport Beach's Employee Policy M anual shall govern all i ssues not addressed in this document with respect to wages, hours and other terms and conditions of employment. 11-31