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<br />15.1 <br /> <br />15.2 <br /> <br />15.3 <br /> <br />15.4 <br /> <br />ARTICLE XV <br /> <br />15.0 RETIREMENT <br /> <br />General. The City shall continue to make contributions to <br />CalPERS in accordance with its contract with CalPERS for <br />employees covered by said contract. <br /> <br />Deferred Retirement. The City will continue to make <br />payment to CalPERS on behalf of each affected employee <br />covered by this Agreement in an amount equal to 100% of <br />each employee's individual retirement contribution. Such <br />payments shall be credited to the individual employee's <br />CalPERS account. <br /> <br />Such payments are not increases in base salary and no <br />salary rate range applicable to any of the employees <br />covered by this Agreement shall be changed or deemed to <br />have been changed by reason thereof. As a resul t, the <br />City will not treat these payments as ordinary income and, <br />thus will not withhold federal or state income tax from <br />said payments. The City has received an opinion or ruling <br />from the Internal Revenue Service confirming that these <br />payments are deferred compensation, not ordinary income. <br /> <br />In the event that the City receives a subsequent ruling <br />from the Internal Revenue Service that such payments are <br />ordinary income of the employees instead of deferred <br />compensation, the City's obligation to make such payments <br />shall discontinue and in place thereof the base salary of <br />each affected employee shall forthwith be increased by 18 <br />salary rate ranges (approximately 9%) for "safety-member" <br />employees covered under the "3% at Age 50" CalPERS formula <br />and 14 salary rate ranges (approximately 7%) for all other <br />affected employees covered by this Agreement. <br /> <br />For the purpose of reporting an employee's compensation to <br />CaIPERS, the City shall include these retirement payments <br />as if they were a part of the employee's base salary. <br /> <br />2% at 55 <br />designated <br />Association <br />benefit. <br /> <br />for CalPERS "Miscellaneous" Members. CalPERS <br />"miscellaneous" employees represented by the <br />shall be covered by the 2% at 55 retirement <br /> <br />3% at 50 Service Retirement Benefit for Safety Members. <br />The City agrees to amend its contract with CalPERS to <br />provide Safety employees represented by this bargaining <br />unit with the 3% at 50 Service Retirement benefit, <br />effective July 1, 2001. <br /> <br />69 <br />