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The passage of the Public Employees' Pension Reform Act (PEPRA) in 2013 resulted in significant PERS retirement changes including requirements associated with member contributions. As such, PPOA members new to the program are required by the law to contribute 11.5 percent of their salary towards retirement. "Classic Members," those already in the CaIPERS system, do not have this requirement and instead their contribution is currently fixed at 10.5 percent. PEPRA's stated goal is for both new members and "Classic Members" to contribute 50 percent of the normal cost (the costs associated with the current year's benefits), and it allows agencies, after good faith bargaining and completing the impasse procedures, to impose this provision up to a maximum of 12 percent in 2018. The tentative agreement reached with PPOA achieves PEPRA's goal in that "Classic Member" contributions will increase by 1.5 percent for a total of 12 percent effective June 2, 2018. New member's contribution will remain at 11.5 percent. Medical Contributions for Active Employees: Currently active employees pay a minimum of$25 per month for healthcare premiums. The proposed contract increases the minimum employee contributions toward medical premiums for family coverage by $25 per month for a total of$50 per month effective January 2019. Other Changes: Agreements were also reached in the areas outlined below. Paid Time Off— Under the recently expired MOU, PPOA members were credited with eighty (80) hours of paid time off in January of each calendar year. PPOA members were scheduled to receive a reduced credit of sixty (60) hours of paid time off beginning 2017. Employees will now receive eighty (80) hours of paid time off beginning 2017. Longevity Requirements — In the recently expired MOU specific longevity is required to receive both Education and POST Incentive pays. Tenure will no longer be required to receive these pays. Minimum Call Back— Minimum call back will be 4 hours for special events, mandatory meetings and assigned work outside shift. Joint Committee—A joint committee will be developed, comprised of representatives from the POA and management, to discuss diversity, personal appearance, grooming standards and incentivizing special assignments. Recommendations regarding these topics will be made by the committee to the negotiating teams in the next set of bargaining and will be non-binding. Page 3 of 4