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<br />AMENDED ARTICLE XII (new language in bold) <br /> <br />12.1 Health Insurance. <br />A. The City shall contribute toward the payment of premiums for <br />affected employees and their dependents under the CalPERS Health <br />Program. Effective July 1, 2005, January 1, 2006, January 1, 2007, <br />eA6 January 1, 2008, January 1, 2009, and January 1, 2010, <br />respectively, the City shall contribute toward medical premiums an <br />amount consistent with the rates then in effect on the dates listed <br />above for the "employee-only", "employee plus one", and "family" tiers, <br />respectively, of the Kaiser "Other Southern California" CalPERS HMO <br />plan. Effective January 1, 2006, the City shall establish a Cafeteria <br />benefit plan for employees covered by this Agreement. <br /> <br />AMENDED ARTICLE XIV (new language in bold) <br /> <br />14.2 Deferred Retirement. The City shall continue to make payment to CalPERS <br />on behalf of each affected employee covered by this Agreement in an <br />amount equal to one hundred percent (100CYo) of each employee's individual <br />retirement contribution. Such payments shall be credited to the individual <br />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, <br />the 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 <br />that these payments are deferred compensation, not ordinary income. <br /> <br />In the event that the City receives a subsequent ruling from the Internal <br />Revenue Service that such payments are ordinary income of the employees <br />instead of deferred compensation, the City's obligation to make such <br />payments shall discontinue and in place thereof the base salary of each <br />affected employee shall forthwith be increased by eighteen (18) salary <br />rate ranges (9.0CYo) for "safety-member" employees covered under the "3CYo <br />at Age 50" CalPERS formula and fourteen (14) salary rate ranges (7.0%) for <br />"miscellaneous-member" employees covered by this Agreement. Effective <br />January 1, 2009, this amount shall be increased to sixteen (16) salary <br />