Cal. Code Regs. Tit. 2, § 571 Definition of Special Compensation

• Library: California Code of Regulations
• Edition: 2023
• Currency: Current through Register 2023 Notice Reg. No. 52, December 29, 2023
• Citation: Cal. Code Regs. Tit. 2, § 571
• Year: 2023

(a) The following list exclusively identifies and defines special compensation items for members employed by contracting agency and school employers that must be reported to CalPERS if they are contained in a written labor policy or agreement:

(1) INCENTIVE PAY Bonus -- Compensation to employees for superior performance such as "annual performance bonus" and "merit pay". If provided only during a member's final compensation period, it shall be excluded from final compensation as "final settlement" pay. A program or system must be in place to plan and identify performance goals and objectives. Dictation/Shorthand/Typing Premium -- Compensation to clerical employees for shorthand, dictation or typing at a specified speed. Longevity Pay -- Additional compensation to employees who have been with an employer, or in a specified job classification, for a certain minimum period of time exceeding five years. Management Incentive Pay -- Compensation granted to management employees in the form of additional time off or extra pay due to the unique nature of their job. Employees within the group cannot have the option to take time off or receive extra pay. This compensation must be reported periodically as earned and must be for duties performed during normal work hours. This compensation cannot be for overtime, nor in lieu of other benefits excluded under the statutes, nor for special compensation not otherwise listed in this Section 2undefined571. Marksmanship Pay -- Compensation to local police officers, county peace officers and school police or security officers who meet an established criterion such as "certification" as a marksperson. Master Police Officer -- Compensation to local police officers, county peace officers and school police or security officers who meet specified requirements, years of employment, performance standards, education Peace Officer Standard Training (POST), and perform a specialty assignment. Physical Fitness Program -- Compensation to local safety members and school security officers who meet an established physical fitness criterion. Value of Employer-Paid Member Contributions (EPMC) -- The full monetary value of employer-paid member contributions (EPMC) paid to CalPERS and reported as an item of special compensation on behalf of all members in a group or class. The value of EPMC is calculated on all "compensation earnable" excluding the special compensation of the monetary value of EPMC paid to CalPERS by the employer under Government Code section California Government Codeundefined20636(c)(4) thus eliminating a perpetual calculation. (A) A resolution or ordinance of the governing body must be provided to CalPERS indicating the group or class effective date, and the percent or amount of EPMC being paid and reported as an item of special compensation. The resolution or ordinance must be formally adopted by the employer's governing body, and submitted to CalPERS for review and approval. (B) The resolution or ordinance must specify that the value of EPMC will be reported as an item of special compensation consistently, for all members in the affected group or class of employment--except that the employer's governing body may elect a "time-in-grade exception" which shall only apply to persons newly-hired into the pertinent group or class of employment. (C) To be classified as "newly-hired," a member of the group or class must not have been previously hired or retained by the employer in any capacity whatsoever. (D) The time-in-grade exception must be elected in the same resolution or ordinance, or by amendment thereto, as adopted by the employer's governing body for the purpose of paying and reporting the value of EPMC, pursuant to this Section 2undefined571. The exception can only be used for the value of EPMC, and not for any other item of special compensation 1. The time-in-grade exception must be applied consistently to all newly-hired employees in the pertinent group or class. 2. The time-in-grade requirement may be incremental, not to exceed a total of five (5) years. For example, the initial requirement may be three years for paying fifty percent (50%) with increases of twenty-five percent (25%) for each additional year of time-in-grade. 3. Once the initial time-in-grade requirement has been met by a newly-hired employee, the employer shall begin paying and reporting the value of EPMC for him or her to the same extent as for all others in the pertinent group or class. (E) To implement the time-in-grade exception the employer's governing body must acknowledge that it may experience an upward adjustment to its employer contribution rate. The acknowledgment must be included in the resolution or ordinance by which the employer's governing body elected to pay and report EPMC as an item of special compensation, by adoption or amendment thereto. (F) The full terms of the resolution or ordinance by which the employer's governing body elects to pay and report the value of EPMC as an item of special compensation--along with any time-in-grade exception for newly-hired employees--must be incorporated into the written labor agreement that pertains to the affected group or class of employment. The time-in-grade exception from paying and reporting the value of EPMC as an item of special compensation pursuant to this Section 2undefined571, is separate and apart from the time-in-grade exception from paying EPMC pursuant to Section 2undefined569 of these regulations. Both of these exceptions are separate and apart from, nor do they apply to, the process for converting EPMC to payrate during the period of final compensation, pursuant to Section California Government Codeundefined20692 of the Government Code. Off-Salary-Schedule Pay -- Compensation in addition to base salary paid in similar lump-sum amounts to a group or class of employees. These payments are routinely negotiated through collective bargaining in lieu of increases to the salary schedule. These payments are based on a similar percent of scheduled salary not to exceed six percent (6%) per fiscal year. The contracting agency or school employer may adopt similar action for non-represented groups or classes of employment as were negotiated through collective bargaining.

(2) EDUCATIONAL PAY The items of special compensation outlined below do not include reimbursement to an employee for the cost of an application or test books, tuition or travel. Applicator's Differential -- Compensation to employees who are required to maintain a Qualified Pesticide Applicator's Certificate. Certified Public Accountant Incentive -- Compensation to miscellaneous employees passing an exam and receiving a license as a Certified Public Accountant. Educational Incentive -- Compensation to employees for completing educational courses, certificates and degrees which enhance their ability to do their job. A program or system must be in place to evaluate and approve acceptable courses. The cost of education that is required for the employee's current job classification is not included in this item of special compensation. Emergency Medical Technician Pay -- Compensation to safety employees who obtain and maintain an emergency medical technical (EMT) certification. Engineering Registration Premium -- Compensation to engineers who have taken and passed a California engineering proficiency exam and are registered with the State of California. Government Agency Required Licenses -- Compensation to employees receiving and maintaining a license required by government or regulatory agencies to perform their duties. International Conference of Building Officials (ICBO) Certificate -- Compensation to building inspectors who obtain and maintain an International Conference of Building Officials (ICBO) certificate in one or more certified areas. Mechanical Premium (Brake Adjustment License, SMOG Inspector License) -- Compensation to employees who obtain and...