Cost sharing has become a very valuable tool for employers seeking to cut the cost of retirement benefits. It is where the employee pays part of the employer’s required contribution to the retirement system and therefore, results in an immediate reduction in employer costs. Prior to passage of the Public Employees’ Pension Reform Act of
Guidance From CalPERS Sheds Light On Understanding The Public Employees’ Pension Reform Act: Determining An Impairment Of A Memorandum Of Understanding And A “Break In Service” For Lateral Hires
What Is An Impairment Of A Memorandum of Understanding (“MOU”)?
The Public Employees’ Pension Reform Act (“PEPRA”) prohibits employers from paying any portion of a “new member’s” member contribution rate. New member contribution is 50% of total normal cost. CalPERS recently released new actuarial reports to employers reflecting what the member contribution rate will be