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CITY OF PLEASANTON NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 Note 11: Defined Benefit Pension Plan (Continued) Benefits Provided – CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees, and their beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment, age and the average of the final one year of compensation for Tier 1 and Tier 2 members and the average of the final three years’ of compensation for Tier 3 and PEPRA members. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after ten years of service. The death benefit is one of the following: the Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Tier 1 Tier 2 PEPRA 3% @ 50 3% @ 55 1 2.7% @ 621 5 Years Service 5 Years Service 5 Years Service Monthly For Life Monthly For Life Monthly For Life 50 50-55 50-57 3% 2.4% to 3% 2% to 2.7% 9%9%11.25% 19.17%19.17%19.17% Safety (Fire) Plan Benefit Formula 1 Newly hired Safety (Police) Employees will be enrolled in the 3% @ 55 or 2.7%@ 57 formula, dependent on the individual's eligibility, as per, AB 340. Required Employer Contribution Rates Benefit Vesting Schedule Benefit Payment Monthly Benefits, as a % of Eligible Compensation Retirement Age Required Employee Contribution Rates Employees Covered – At June 30, 2022, the following employees were covered by the benefit terms of the Safety (Fire) Plan: Inactive Employees or Beneficiaries Currently Receiving Benefits 125 Inactive Employees Entitled to but not yet Receiving Benefits 58 Active Employees 120 Total 303 Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on July 1 following notice of change in the rate. Funding contributions for the plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees. 103