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ARTICLE XIII <br />13.0 RETIREMENT <br />13.1 General. The terms of the existing contract between the City and the California Public <br />Employees' Retirement System (Ca1PERS) governing the City retirement benefits for <br />affected employees are incorporated by reference herein. The City shall continue to make <br />contributions to Ca1PERS in accordance with its contract with Ca1PERS for affected <br />employees covered by such contract as amended. <br />13.2 Deferred Retirement. The City shall continue to make payment to Ca1PERS on behalf of <br />each affected employee, as defined in Sections 13.3(A) and 13.3(B), in an amount <br />necessary to pay one hundred percent (100%) of their individual retirement contribution <br />which is equal to eight percent (8%) of base salary. Such payments shall be credited to the <br />individual employee's Ca1PERS account. <br />Such payments are not increases in base salary and no salary rate range applicable to any <br />employees shall be changed or deemed to have been changed by reason thereof. As a <br />result, the City shall not treat these payments as ordinary income and, thus shall not <br />withhold Federal or State income tax from these payments. In the event that the City <br />receives a ruling from the Internal Revenue Service that such payments are ordinary <br />income of the employees instead of deferred compensation, the City's obligation to make <br />such payments shall discontinue and in place thereof the base salary of each employee shall <br />forthwith be increased by eight percent (8%). <br />For the purpose of reporting an employee's compensation to CAPERS, the City shall <br />include these payments as if they were a part of the employee's base salary. <br />13.3 2.7% at 55 Service Retirement Benefit for Miscellaneous Members. <br />A. The City agrees to continue to provide Miscellaneous employees who were <br />appointed to their classification on or before December 31, 2012 with the 2.7% at <br />55 Service Retirement benefit. Pursuant to Ca1PERS regulations, this formula shall <br />apply only to the aforementioned employees that are in an active status. This <br />formula shall apply to each year of eligible service credited with the City of Santa <br />Ana. <br />B. The City agrees to provide Miscellaneous employees who are appointed to their <br />classification on or after January 1, 2013 and are not new members as defined by <br />the California Public Employees' Pension Reform Act of 2013 (AB340), with the <br />2.7% at 55 Service Retirement benefit. Pursuant to CAPERS, this formula shall <br />apply only to the aforementioned employees that are in an active status. This <br />formula shall apply to each year of eligible service credited with the City of Santa <br />Ana. <br />CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) MOU: JULY 1, 2022 THROUGH JUNE 30, 2025 <br />Page 47 <br />