CONFIDENTIAL ASSOCIATION OF THE CITY OF SANTA ANA (CASA)

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ARTICLE XIII 13.0 RETIREMENT 13,1 General. The terms of the existing contract between the City and the California Public Employees' Retirement System (CaIPERS) governing the City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to make contributions to CaIPERS in accordance with its contract with CaIPERS for affected employees covered by such contract as amended. 13.2 Deferred Retirement. The City shall continue to make payment to CaIPERS on behalf of each affected employee, as defined in Sections 13.3(A) and 13.3(B), in an amount necessary to pay one hundred percent (100%) of their individual retirement contribution which is equal to eight percent(8%)of base salary. Such payments shall be credited to the individual employee's CaIPERS account. Such payments are not increases in base salary and no salary range applicable to any employees shall be changed or deemed to have been changed by reason thereof. As a result, the City shall not treat these payments as ordinary income and, thus shall not withhold Federal or State income tax from these payments. In the event that the City receives a ruling from, the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each employee shall forthwith be increased by eight percent(8%). For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were a part of the employee's base salary. 13.3 2.7%at 55 Service Retirement Benefit for Miscellaneous Members. A. The City agrees to continue to provide Miscellaneous employees who were appointed to their classification on or before December 31, 2012 with the 2.7% at 55 Service Retirement benefit. Pursuant to CaIPERS regulations,this formula shall apply only to the aforementioned employees that are in an active status. This formula shall apply to each year of eligible service credited with the City of Santa Ana. B. The City agrees to provide Miscellaneous employees who are appointed to their classification on or after January 1, 2013 and are not new members as defined by the California Public Employees' Pension Reform Act of 2013 (AB340), with the 2.7% at 55 Service Retirement benefit. Pursuant to CaIPERS, this formula shall apply only to the aforementioned employees that are in an active status. This formula shall apply to each year of eligible service credited with the City of Santa Ana. CONFIDENTIAL ASSOCIATION OF SANTA ANA{CASA) MOU: JULY 1,2025 THROUGH JUNE 30,2028 Page 46 13139922.1 SA370-001