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RESOLUTION NO. 89-087 Page 6 of 15 5.9 Actinq Pay. An unrepresented management employee may be appointed by the City Manager to serve in an acting capacity during an unplanned absence from work of thirty calendar days or more of another unrepresented management employee. Management employees who are granted acting pay by the City Manager shall receive a five percent (5%) increase in pay or the minimum rate of the higher salary range while serving in an "acting" capacity. 5.10 Uoqrade to a Manaeement Class. Regular employees of the City who are incumbents of classes of employment not included in this Resolution and who are temporarily upgraded to a management class shall receive a five percent (5%) increase or the minimum rate of the management salary range, in accordance with current upgrade provisions. 5.11 Reallocation of Salary Rate Ranqes. Any officer or employee who is employed in a classification which is reallocated to a different salary rate range from that previously assigned shall be retained in the same salary step in the new salary rate range as he or she had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step. Section 6. Employee Benefits. Officers and employees regularly employed in the classes of employment listed in Section 3 of this Resolution shall receive as additional compensation the following employee benefits: 6.1 Retirement Plan Contributions. A. General. The terms of the existing contract between the City and the California Public Employees' Retirement System (PERS) governing the retirement benefits for eligible affected management employees are incorporated by reference herein. The City shall continue to make contributions to PERS in accordance with its contract with the system for affected employees covered by said contract. B. Deferred Retirement. The City shall continue to make payment to the PERS on behalf of each eligible affected employee in an amount required to pay one hundred percent (100%) of the employee's individual retirement contribution. Such payments shall be credited to the individual employee's PERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this Resolution 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 previously received a ruling from the Internal Revenue Service confirming that such payments are deferred compensation and not ordinary income. In the event that the City receives a new 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 said employee shall forthwith be increased by seven percent (7%), except for "safety-member" employees eligible for coverage under the 2% at Age 50 Benefits Formula where the base salary shall be increased by nine percent (9%).