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ARTICLE XIII C�177ylYI�T1�I�YY 13.1 General. The City shall continue to make contributions to the California Public Employees' Retirement System (CaIPERS) in accordance with its contract with CaIPERS for employees covered by said contract as amended. 13.2 Deferred Retirement. The City shall continue to make payment to CalPERS on behalf of each employee covered by this MOU in accordance with the following schedule: A. For Safety employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA), the City shall pay the nine percent (9%) member contribution and report it to CalPERS as compensation eamable. B. For Miscellaneous employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA) the City shall pay the eight percent (8%) member contribution and report it to CalPERS as compensation eamable . Such payments shall be credited to the individual employee's CalPERS 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 will not treat these payments as ordinary income and thus, will not withhold federal or state income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, not ordinary income. In the event that the City receives a subsequent 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 affected employee shall forthwith be increased by eighteen (18) salary rate ranges (9.0%) for Sworn Safety employees who do not qualify as "Flew Members" and sixteen (16) salary rate ranges (8.0%) for Miscellaneous employees who do not qualify as "Flew Members" covered by this MOU. For the purpose of reporting an employee's compensation to CalPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 CaIPERS Fourth Level of 1959 Survivors Benefits. The City will provide CalPERS fourth level of 1959 Survivors Benefit to all eligible employees in the unit. 13.4 CalPERS Pre -Retirement Optional Settlement 2 Death Benefit. The City shall provide the CalPERS Pre -Retirement Optional Settlement 2 Death Benefit to all employees 49 65D-57