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<br />J. Effective July 1, 2009, Miscellaneous employees covered by this <br />Agreement shall contribute 6.3% toward the 2.7'0 at 55 retirement <br />benefit. To the extent permitted by CalPERS and Internal Revenue <br />Service regulations, this 6.3'0 contribution shall be implemented through <br />payroll deduction on a pre-tax basis. <br /> <br />AMENDED ARTICLE XII (new language in bold) <br /> <br />12.1 General. The terms of the existing contract between the City and the California <br />Public Employees' Retirement System (CaIPERS) governing City retirement <br />benefits for affected employees are incorporated by reference herein. <br /> <br />Each miscellaneous Part Time Civil Service employee covered by this Agreement <br />shall be a member of the CalPERS system and shall continue to make payment to <br />CalPERS in an amount necessary to pay one hundred percent (100%) of his or her <br />individual retirement contribution which is equal to seven percent (7'Yo) of his/her <br />PERSable salary. Such payments shall be credited to the individual employee's <br />CalPERS account. <br />12.2 2% at 55 Retire",eRt BeRefit. Effective Jul'/1, 1997, the Cit'! a~reed ta pay <br />2.266% af the cast af pra';iaiRg CalPERS 2% at 55 retire",eRt beAefit to <br />emplayees af this IdRit. Emple'fees agrees te pa'f eRe perccAt (1%) af the tatal <br />cast af 3.266C:I.., far the 2~{' at 55 retiremeRt beRefit by autheriziR~ a aAe perceAt <br />(1%) aeauctieA fram their salary (52a (2) salary rate raA~es) effecti'/e July 1, <br />1997. Effective ~Ja"ember 1, 2001, this aAe perceAt (1%) deauctiaA v.ras <br />elimiAated. <br /> <br />12.2 Deferred Retirement. Effective July 1, 2009, the City shall begin to make <br />payment to CalPERS on behalf of each affected employee, in an amount <br />necessary to pay one hundred percent (100%) of his or her individual <br />retirement contribution which currently is equal to seven percent (7%) and will <br />increase to eight percent (8'0), effective January 1, 2009. Such payments <br />shall be credited to the individual employee's CalPERS account. <br /> <br />Such payments are not increases in base salary and no salary rate range <br />applicable to any of the employees covered by this Agreement shall be <br />changed or deemed to have been changed by reason thereof. As a result, the <br />City will not treat these payments as ordinary income and, thus, will not <br />withhold Federal or State income tax from said payments. The City has <br />received an opinion or ruling from the Internal Revenue Service confirming that <br />these payments are deferred compensation, and not ordinary income. In the <br />