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<br />13 .1 <br /> <br />13 .2 <br /> <br />ARTICLE XIII <br /> <br />13.0 RETIREMENT <br /> <br />General. The City shall continue to make contributions to <br />the California Public Employees' Retirement System <br />(CalPERS) in accordance with its contract with CalPERS for <br />employees covered by said contract as amended on January <br />1, 1990 and to be amended to provide for the 3% at 50 <br />benefit effective July 1, 2001. <br /> <br />Deferred Retirement. The City shall continue to make <br />payment to CalPERS on behalf of each employee covered by <br />this Agreement in accordance with the following schedule: <br /> <br />A. With respect to "safety-member" employees, the City <br />shall pay an amount equal to nine-ninths (9/9ths) of <br />his or her individual employee retirement contribution. <br /> <br />B. with respect to "miscellaneous-member" employees <br />covered by this Agreement, the City shall pay an amount <br />equal to seven-sevenths (7/7ths) of his or her <br />individual employee retirement contribution. <br /> <br />Such payments shall be credited to the individual <br />employee's CalPERS account. <br /> <br />Such payments are not increases in base salary and no <br />salary rate range applicable to any of the employees <br />covered by this Agreement shall be changed or deemed to <br />have been changed by reason thereof. As a result, the <br />City will not treat these payments as ordinary income <br />and thus, will not withhold federal or state income tax <br />from said payments. The City has received an opinion <br />or ruling from the Internal Revenue Service confirming <br />that these payments are deferred compensation, not <br />ordinary income. <br /> <br />In the event that the City receives a subsequent <br />ruling from the Internal Revenue Service that such <br />payments are ordinary income of the employees instead <br />of deferred compensation, the City's obligation to make <br />such payments shall discontinue and in place thereof <br />the base salary of each affected employee shall <br />forthwith be increased by eighteen (18) salary rate <br />ranges (9.0%) for "safety-member" and fourteen (14) <br />salary rate ranges (7.0%) for all "miscellaneous- <br />member" employees covered by this Agreement. <br /> <br />For the purpose of reporting an employee's compensation <br />to CalPERS, the City shall include these payments as if <br />they were a part of the employee's base salary. <br /> <br />56 <br />