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<br />AMENDED ARTICLE XIII (new language in bold) <br /> <br />13.1 General. The City shall continue to make contributions to the California Public <br />Employees' Retirement System (CaIPERS) in accordance with its contract with <br />CalPERS for employees covered by said contract as amended. al'l Jel'll:leF"f 1, 1990 <br />el'la ta Be emeRaea ta pra...iae far tl<le 3~<' et 90 Bel'lefit effeetive JI:II)' 1, 2001. <br /> <br />13.2 Deferred Retirement. The City shall continue to make payment to CalPERS on <br />behalf of each employee covered by this Agreement in accordance with the <br />following schedule: <br /> <br />A. With respect to "safety-member" employees, the City shall pay an amount equal <br />to nine-ninths (9/9ths) of his or her individual employee retirement contribution. <br /> <br />B. With respect to "miscellaneous-member" employees covered by this Agreement, <br />the City shall pay an amount equal to sevel'l sevel'ltl<ls (7/7tl<ls) eight-eighths <br />(8/8ths) of his or her individual employee retirement contribution. <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 Agreement shall be changed or deemed to <br />have been changed by reason thereof. As a result, the City will not treat these <br />payments as ordinary income and thus, will not withhold federal or state income tax <br />from said payments. The City has received an opinion or ruling from the Internal <br />Revenue Service confirming that these payments are deferred compensation, not <br />ordinary income. <br /> <br />In the event that the City receives a subsequent ruling from the Internal Revenue <br />Service that such payments are ordinary income of the employees instead of <br />deferred compensation, the City's obligation to make such payments shall <br />discontinue and in place thereof the base salary of each affected employee shall <br />forthwith be increased by eighteen (18) salary rate ranges (9.0'10) for "safety- <br />member" and fal:lrteel'l (14) salary rete rel'l~es (7.0~<') sixteen (16) salary rate <br />ranges (8.0%) for all "miscellaneous-member" employees covered by this <br />Agreement. <br />