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ARTICLE XIII <br /> 13 . 0 RETIREMENT <br /> 13 . 1 General . The City shall continue to make contributions to <br /> the California Public Employees' Retirement System <br /> (CalPERS) in accordance with its contract with CalPERS <br /> for employees covered by said contract as amended on <br /> January 1, 1990 . <br /> 13 . 2 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 /> 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 /> 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 /> Such payments shall be credited to the individual <br /> employee' s CalPERS account . <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 <br /> changed or deemed to have been changed by reason <br /> thereof . As a result, the City will not treat these <br /> payments as ordinary income and thus, will not <br /> withhold federal or state income tax from said <br /> payments . The City has received an opinion or <br /> ruling from the Internal Revenue Service confirming <br /> that these payments are deferred compensation, not <br /> ordinary income . <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 <br /> "safety-member" and fourteen (14) salary rate <br /> ranges (7 . 0%) for all "miscellaneous-member" <br /> employees covered by this Agreement . <br /> 48 <br />