CONFIDENTIAL ASSOCIATION (CASA) (2017-2018)

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ARTICLE Xlil 13.0 RETIREMENT 13.1 General. The terms of the existing contract between the City and the California Public Employees' Retirement System (CaIPERS) governing fhe City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to make contributions to CaIPERS in accordance with its contract with CaIPERS for affected employees covered by such contract as amended, 13,2 Deferred Retirement, The City shall continue to make payment to CaIPERS on behalf of each affected employee, as defined in Sections 13.3.A and 13.13 (below), in an amount necessary to pay one hundred percent (100%) of his or her individual retirement contribution which is equal to eight percent (8%) of base salary. Such payments shall be credited to the individual employee's CaIPERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this MOU shall be changed or deemed to have been changed by reason thereof. As a result, the City shall not treat these payments as ordinary income and, thus shall not withhold Federal or State income tax from these payments, The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each employee shall forthwith be increased by 8%. For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 2,7% at 55 Service Retirement Benefit for Miscellaneous Members. A. The City agrees to continue to provide Miscellaneous employees covered by this MOU who were appointed to their classification on or before December 31, 2012 with the 2.7% at 55 Service Retirement benefit. Pursuantto CaIPERS regulations, this formula shall apply onlyto CONFIDENTIAL AS50CIATION OFSANTAANA(CASA) MOU: 2017-2018 Page 54