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be borne by the employee. 11.4 Vision Plan. The City shall offer a non-contributory vision plan through payroll deduction for employees wishing to participate in such a plan. 11.5 Insurance Committee. When there is a need to discuss matters relating to employee insurance and the City believes it would be beneficial to involve an Insurance Committee, the Union shall have an equal number of representatives as the City on such a committee to meet as necessary. ARTICLE XII 12.0 RETIREMENT 12.1 General. The terms of the existing contract between the City and the California Public Employees' Retirement System (Ca1PERS) governing City retirement benefits for affected employees are incorporated by reference herein. Each Part Time Civil Service employee shall be a member of the Ca1PERS system, and the City shall make contributions to Ca1PERS in accordance with its contract with Ca1PERS for affected employees covered by said contract as amended. 12.2 Deferred Retirement. Effective July 1, 2009, the City began to make payments to Ca1PERS on behalf of each affected employee, in an amount necessary to pay 100% of his or her individual retirement contribution. This amount increased from seven percent (7%) to eight percent (8%) on January 1, 2009. Such payments shall be credited to the individual employee's Ca1PERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this Agreement shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and, thus, will not withhold federal or state income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation and not ordinary income. In the event that the City receives a ruling on or after July 1, 2009 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 be increased forthwith by sixteen (16) salary rate ranges (approximately 8%) after January 1, 2009. For the purpose of reporting an employee's compensation to Ca1PERS, the City shall include these payments as if they were a part of the employee's base salary. 12.3 2.7% at 55 Retirement Benefit. Effective January 1, 2009, the City agrees to amend its retirement contract with CalPERS to provide miscellaneous employees covered by this Agreement with the 2.7% at 55 Service Retirement benefit. Pursuant to CalPERS regulations, this new formula will apply to employees that are in active status on the date this amendment takes effect. This new formula will apply to each year of eligible service credited with the City of Santa Ana. 27 25A-29