CALPERS Retirement - The City of Rancho Cordova contracts with the California Public Employees' Retirement System (CalPERS) for a defined benefit plan.
Tier 1: Employees hired prior to December 31, 2012, and "Classic Members" hired subsequently with less than a six (6) month break in service, are provided 2.7% at 55 retirement formula. City employees pay the full 8% of their base pay toward this retirement benefit.
Tier 2: Due to the Public Employees' Pension Reform Act of 2013 (Assembly Bill 340), new Miscellaneous members hired after January 1, 2013, or "Classic Members" with a break in service of more than six (6) months, are eligible for the 2% @ 62 CalPERS retirement formula for fiscal year 2025/2026. Employee contribution rate is 7.75% of PERS-able compensation, up to $186,906. (Note: the employee contribution will change as the cost of the benefit changes, since the employee is required to pay half the normal cost.)
1959 Survivor Benefit (Indexed Level)
The 1959 Survivor Benefit provides a monthly allowance to eligible survivors of members who die while actively employed. The monthly benefit payable to survivors in the Indexed Level increases by 2% each year. Benefit amounts for fiscal year 2025/2026 are $820, $1,641 and $2,461 for 1, 2, or 3 eligible survivors.
457 and 401(a) Deferred Compensation Plan
- City will contribute $23.08 per pay period into the 457 Deferred Compensation Plan on behalf of the employee.
- City will match up to 3% of the base salary for employees who participate in the 457 plan. City match is placed in a 401(a) plan. There is no vesting period.
- Employees may also voluntarily participate in the 401(a) defined contribution retirement program; however, election must be made upon hire and is irrevocable during employment with the city.
Health Insurance (medical, dental and vision) - The City offers a "cafeteria plan," which includes a monthly medical stipend the employee may apply toward premiums for medical, dental and vision.
Cash-in-lieu - If your total health, vision and/or dental premium costs are lower than $300, you may receive the difference as cash in lieu up to a total of $300. If you do not need to purchase medical, dental or vision benefits from the City, you are eligible for a total of $300 cash in lieu per month.
Medical Benefits
Retiree Health Medical Benefits - CalPERS plans made available, and retiree medical contribution offered toward the cost of the plan. In 2026, the retiree medical contribution is $162.00 per month. The retiree medical contribution will continue to increase until it is equal to the minimum contribution required by CalPERS for the employer to pay on behalf of an employee.
Dental - Delta Dental PPO
Vision - Vision Service Plan (VSP)
Flexible Spending Account (FSA)
- Medical FSA for the plan year is $3,400 (maximum)
- Dependent Care FSA for the plan year is $7,500 (maximum)
Universal Time Off (UTO) - vacation and sick leave combined
Universal Time Off Cash Out - Employees may cash out up to 80 hours in fiscal year 25/26.
Bereavement Leave - On the date of hire, employees are entitled to 24 hours of Bereavement Leave per event due to the death of a member of an employee's immediate family.
Holidays - 13 Holidays per year.
Winter Break - Reviewed by the City Manager each year.
Life Insurance - $50,000 life insurance policy
- Life price per $1,000 $0.109
- AD&D price per $1,000 $0.025
Long Term Disability
- LTD price per $100 $0.145
- 60% of earnings up to $7,500
- 90-day benefit waiting period
- Maximum Benefit Duration - To age 65 or Social Security Normal Retirement Age
Social Security - Employees do not pay into and earn credit toward future benefits in Social Security, since the City offers an IRS qualifying retirement plan. Medicare benefits, however, will not be affected.
Employee Assistant Plan (EAP) - Available to employee and immediate family. Includes concierge, financial and legal services.
Wellness Program - On-site fitness room, shower and lockers and ping pong tables available for employee use.
Tuition Reimbursement - Up to $2,500 per fiscal year.
Training and Development - Available and encouraged for each employee.
Updated January 2026
