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ARTICLE XIII 13.0 RETIREMENT 13.1 General. The City shall continue to make contributions to the California Public Employees' Retirement System (CaIPERS) in accordance with its contract with CaIPERS for employees covered by said contract as amended. 13.2 Deferred Retirement. The City shall continue to malce payment to CaIPERS on behalf of each employee covered by this Agreement in accordance with the following schedule: A. With respect to "safety- member" employees, the City shall pay an amount equal to nine - ninths (9 /9ths) of his or her individual employee retirement contribution. B. With respect to "miscellaneous- member" employees covered by this Agreement, the City shall pay an amount equal to eight- eightlis (8 /8ths) of his or her individual employee retirement contribution. Such payments shall be credited to the individual employee's CaIPERS 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, not ordinary income. In the event that the City receives a subsequent 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 affected employee shall forthwith be increased by eighteen (18) salary rate ranges (9.0 %) for "safety - member" and sixteen (16) salary rate ranges (8.0 %) for all "miscellaneous- member" employees covered by this Agreement. 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 CaIPERS Fourth Level of 1959 Survivors Benefits, Effective November 7, 2002, the City will provide CaIPERS fourth level of 1959 Survivors Benefit to all eligible employees in the unit, 13.4 CalPERS Pre- Retirement Optional Settlement 2 Death Benefit. Effective July 5, 2000, the City shall provide the CaIPERS Pre- Retirement Optional Settlement 2 Death Benefit 53 25B -55