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