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11.2 Long -Term Disability (L.T.D.) Insurance. The City shall allow employees, for the term of this Agreement, to participate in any aspect of the Plan offered to the City at the City rate. The cost for this benefit shall be borne by the employee. 11.3 Life Insurance. The City shall allow employees, for the terin of this Agreement, to participate in any aspect of the plan offered to the City at the City rate. The cost for this benefit shall 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 (CaIPERS) governing City retirement benefits for affected employees are incorporated by reference herein. Each Part Time Civil Service employee shall be a member of the CalPERS system, and the City shall make contributions to Ca1PERS in accordance with its contract with CalPERS for affected employees covered by said contract as amended. 12.2 Deferred Retirement. The City will continue to make payments to CalPERS on behalf of each employee covered by this agreement, in an amount necessary to pay 100% of his or her individual employee retirement contribution which is equal to eight percent (8 %). Such payments shall be credited to the individual employee's CalPERS 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 CalPERS, the City shall include these payments as if they were a part of the employee's base salary. 28 25C -30