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ARTICLE XIII <br /> 13.0 RETIREMENT <br /> 13.1 General. The City shall continue to make contributions to the California Public Employees' <br /> Retirement System (CalPERS) in accordance with its contract with CalPERS for <br /> employees covered by said contract as amended. <br /> 13.2 Deferred Retirement. The City shall continue to make payment to CalPERS on behalf of <br /> each employee covered by this MOU in accordance with the following schedule: <br /> A. For Safety employees covered by this MOU who do not qualify as"New Members" <br /> under the California Public Employees' Pension Reform Act of 2013 (PEPRA), the <br /> City shall pay the nine percent(9%)member contribution and report it to CalPERS <br /> as compensation earnable. <br /> B. For Miscellaneous employees covered by this MOU who do not qualify as "New <br /> Members" under the California Public Employees' Pension Reform Act of 2013 <br /> (PEPRA)the City shall pay the eight percent(8%) member contribution and report <br /> it to CalPERS as compensation earnable. <br /> Such payments shall be credited to the individual employee's CalPERS account. <br /> Such payments are not increases in base salary and no salary range applicable to <br /> any of the employees covered by this MOU shall be changed or deemed to have <br /> been changed by reason thereof. As a result, the City will not treat these payments <br /> as ordinary income and thus,will not withhold federal or state income tax from said <br /> payments as permitted by IRS Code section 414(h)(2). <br /> For the purpose of reporting an employee's compensation to CalPERS, the City <br /> shall include these payments as if they were a part of the employee's base salary. <br /> The parties agree that to the extent permitted by law the value of the Employer Paid <br /> Member Contribution is special compensation and shall be reported as such pursuant to <br /> Title 2 CCR, Section 571(a)(1). This pay is only reportable to CalPERS as special <br /> compensation for those who qualify as classic members as described by the Public <br /> Employees' Pension Reform Act of 2013 —PEPRA. This pay is not reportable as special <br /> compensation for employees defined as "new members" under PEPRA. However, <br /> CalPERS ultimately determines whether any form of compensation qualifies as special <br /> compensation. <br /> 13.3 CalPERS Fourth Level of 1959 Survivors Benefits. The City will provide CAPERS fourth <br /> level of 1959 Survivors Benefit to all eligible employees in the unit. Employees pay the <br /> employee contribution for this benefit. <br /> 13.4 CAPERS Pre-Retirement Optional Settlement 2 Death Benefit. The City shall provide the <br /> CalPERS Pre-Retirement Optional Settlement 2 Death Benefit to all employees covered <br /> by this MOU. <br /> 51 <br />