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ARTICLE XII <br />12.0 RETIREMENT <br />12,1 General. The terms of the existing contract between the City and the California <br />Public Employees' Retirement System (CalPERS) governing City retirement <br />benefits for affected employees are incorporated by reference herein, Each Part <br />Time Civil Service employee shall be a member of the CalPERS system, and the <br />City shall make contributions to CalPERS in accordance with its contract with <br />CalPERS for affected employees covered by said contract as amended. <br />12.2 Deferred Retirement. The City will continue to make payments to CalPERS on <br />behalf of each employee covered by this agreement, in an amount necessary to pay <br />100% of his or her individual employee retirement contribution which is equal to <br />eight percent (8%). Such payments shall be credited to the individual employee's <br />CalPERS account. <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 <br />to 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 <br />tax from said payments. <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 />12.3 2,7% at 55 Service Retirement Benefit for Miscellaneous employees, The City <br />contracts with CalPERS to provide Miscellaneous employees who do not qualify <br />as "New Members" under PEPRA with the 2.7% at 55 Service Retirement benefit. <br />The employee contribution rate for Miscellaneous employees who do not qualify <br />as "New Members" under PFPRA shall be (8%) percent of CalPERS reportable <br />compensation. All employee contributions for retirement benefits are paid to the <br />employer portion of the City's CalPERS contribution. This payment shall be paid <br />in accordance with Government Code section 20516(f). <br />Pre -Taxable Benefit. To the extent permitted by CalPERS and internal Revenue <br />Service regulations, the City shall make the above employee deductions pre-tax <br />contributions. <br />32 <br />