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<br />13 .1 <br /> <br />13 .2 <br /> <br />ARTICLE XIII <br /> <br />13 . 0 RETIREMENT <br /> <br />General. The City shall continue to make contributions to <br />the California Public Employees' Retirement System <br />(CaIPERS) in accordance with its contract with CalPERS <br />for employees covered by said contract as amended on <br />January 1, 1990 and to be amended to provide for the 3% <br />at 50 benefit effective July 1, 2001. <br /> <br />Deferred Retirement. The City shall continue to make <br />payment to CalPERS on behalf of each employee covered by <br />this Agreement in accordance with the following schedule: <br /> <br />A. with respect to "safety-member" employees, the City <br />shall pay an amount equal to nine-ninths (9/9ths) <br />of his or her individual employee retirement <br />contribution. <br /> <br />B. with respect to "miscellaneous-member" employees <br />covered by this Agreement, the City shall pay an <br />amount equal to seven-sevenths (7/7ths) of his or <br />her individual employee retirement contribution. <br /> <br />Such payments shall be credited to the individual <br />employee's CalPERS account. <br /> <br />Such payments are not increases in base salary and <br />no salary rate range applicable to any of the <br />employees covered by this Agreement shall be changed <br />or deemed to have been changed by reason thereof. As <br />a result, the City will not treat these payments as <br />ordinary income and thus, will not withhold federal <br />or state income tax from said payments. The City has <br />received an opinion or ruling from the Internal <br />Revenue Service confirming that these payments are <br />deferred compensation, not ordinary income. <br /> <br />In the event that the City receives a subsequent <br />ruling from the Internal Revenue Service that such <br />payments are ordinary income of the employees <br />instead of deferred compensation, the City's <br />obligation to make such payments shall discontinue <br />and in place thereof the base salary of each <br />affected employee shall forthwith be increased by <br />eighteen (18) salary rate ranges (9.0%) for "safety- <br /> <br />56 <br />