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47 <br />ARTICLE XIII <br /> <br />13.0 RETIREMENT <br /> <br />13.1 General. The City shall continue to make contributions to the California Public Employees' <br />Retirement System (CalPERS) in accordance with its contract with CalPERS for <br />employees covered by said contract as amended. <br /> <br />13.2 Deferred Retirement. The City shall continue to make payment to CalPERS on behalf of <br />each employee covered by this MOU in accordance with the following schedule: <br /> <br />A. For Safety employees covered by this MOU who do not qualify as “New Members” <br />under the California Public Employees’ Pension Reform Act of 2013 (PEPRA), the <br />City shall pay the nine percent (9%) member contribution and report it to CalPERS <br />as compensation earnable. <br /> <br />B. For Miscellaneous employees covered by this MOU who do not qualify as “New <br />Members” under the California Public Employees’ Pension Reform Act of 2013 <br />(PEPRA) the City shall pay the eight percent (8%) member contribution and report <br />it to CalPERS as compensation earnable. <br /> <br /> Such payments shall be credited to the individual employee’s CalPERS account. <br /> <br />Such payments are not increases in base salary and no salary rate range applicable <br />to any of the employees covered by this MOU shall be changed or deemed to have <br />been changed by reason thereof. As a result, the City will not treat these payments <br />as ordinary income and thus, will not withhold federal or state income tax from said <br />payments as permitted by IRS Code section 414(h)(2). <br /> <br />For the purpose of reporting an employee’s compensation to CalPERS, the City <br />shall include these payments as if they were a part of the employee’s base salary. <br /> <br />13.3 CalPERS Fourth Level of 1959 Survivors Benefits. The City will provide CalPERS fourth <br />level of 1959 Survivors Benefit to all eligible employees in the unit. Employees pay the <br />employee contribution for this benefit. <br /> <br />13.4 CalPERS Pre-Retirement Optional Settlement 2 Death Benefit. The City shall provide the <br />CalPERS Pre-Retirement Optional Settlement 2 Death Benefit to all employees covered <br />by this MOU. <br /> <br />13.5 Military Service Credit as Public Service. Employees may elect (per Government Code <br />21024) to purchase up to four (4) years of service credit for any continuous active military <br />or merchant marine service prior to employment. The employee must contribute an amount <br />equal to the contribution for current and prior service that the employee and the employer <br />would have made with respect to that period of service. <br />