All payments provided for members under Section A8.606 shall be made from funds derived from the following sources, plus interest earned on said funds:
There shall be deducted from each payment of compensation made to a member under Section A8.606 a sum equal to seven percent of such payment of compensation. The sum so deducted shall be paid forthwith to the Retirement System. Said contribution shall be credited to the individual account of the member from whose salary it was deducted, and the total of said contributions, together with interest credited thereon in the same manner as is prescribed by the Board of Supervisors for crediting interest to contributions of other members of the Retirement System, shall be applied to provide part of the retirement allowance granted to, or allowance granted on account of said member, or shall be paid to said member or his or her estate or beneficiary as provided in Sections A8.606-8, A8.606-9 and A8.606-10. The individual accounts of members who purchased service credit for Unpaid Parental Leave shall also include the amount paid by the member for said purchase, plus interest.
The City and County shall contribute to the Retirement System such amounts as may be necessary, when added to the contributions referred to in Subsection (a) of this Section A8.606-11, to provide the benefits payable to members under Section A8.606. Such contributions of the City and County to provide the portion of the benefits hereunder shall be made in annual installments, and the installment to be paid in any year shall be determined by the application of a percentage to the total compensation paid during said year to persons who are members under Section A8.606 in accordance with the provisions of Section A8.510.
Notwithstanding any other provision of this Section A8.606-11 or this Charter, beginning on July 1, 2012, the employee contribution rate set forth in Subsection (a) shall be increased or decreased each fiscal year based on the employer contribution rate for that fiscal year calculated by the Retirement System’s actuary as prescribed in Subsection (b). Said increase or decrease in the employee contribution rate shall be calculated as a percentage of compensation, as set forth below:
|Employer Contribution Rate||Change In Member Contribution|
The employee contribution increases shall be deducted from each payment of compensation and shall be paid forthwith to the Retirement System. Said additional contribution shall be credited to the individual account of the member from whose salary it was deducted, and the total of said contributions, together with interest credited thereon in the same manner as is prescribed by the Board of Supervisors for crediting interest to contributions of other members of the Retirement System, shall be applied to provide part of the retirement allowance granted to, or allowance granted on account of, said member under Section A8.606, or shall be paid to said member or his or her beneficiary or estate as provided in Sections A8.606-4, A8.606-5 and A8.606-8.
The percentage increase in member contributions shall reduce, by a corresponding percentage, the City and County contributions to the Retirement System otherwise required for said member for that fiscal year.
The employee contribution decreases shall be paid by the City and County at the time each member is paid compensation, such that the Retirement System receives from the member and the City and County combined, a sum equal to eight and one half percent of the member’s compensation as provided in Subsection (a). The sums so received shall be credited to the individual accounts of the member on whose behalf the contributions are made.
The percentage increase in contributions by the City and County shall be in addition to the contributions required under Subsection (b) for that fiscal year.
To promote the stability of the Retirement System through a joint participation in the result of variations in the experience under mortality, investment and other contingencies, the contributions of both members and the City and County held by the system to provide benefits for members under Section A8.606 shall be a part of the fund in which all other assets of said system are included.
The Retirement Board’s authority under Charter Sections 12.100 and A8.500 and in Section A8.510 concerning the annual setting of the rates of contribution is not subject to the meet and confer process, including all impasse procedures under Section A8.590 et seq.
(Added by Proposition C, Approved 11/8/2011)