Laserfiche WebLink
ARTICLE XIII <br />13.0 RETIREMENT <br />13.1 General. The terms of the existing contract between the City and the <br />California Public Employees' Retirement System (CaIPERS) governing the City <br />retirement benefits for affected employees are incorporated by reference <br />herein. The City shall continue to make contributions to CaIPERS in <br />accordance with its contract with CaIPERS for affected employees covered <br />by such contract as amended. <br />13.2 Deferred Retirement. The City shall continue to make payment to CaIPERS <br />on behalf of each affected employee, as defined in Sections 13,3,A and 13.13 <br />(below), in an amount necessary to pay one hundred percent (100 %) of his <br />or her Individual retirement contribution which is equal to eight percent (8 %) <br />of base salary. Such payments shall be credited to the individual <br />employee's CaIPERS account. <br />Such payments are not increases in base salary and no salary rate range <br />applicable to any of the employees covered by this MOU shall be changed <br />or deemed to have been changed by reason thereof. As a result, the City <br />shall not treat these payments as ordinary income and, thus shall not <br />withhold Federal or State income tax from these payments. The City has <br />received an opinion or ruling from the Internal Revenue Service confirming <br />that these payments are deferred compensation, and not ordinary income. <br />In the event that the City receives a ruling from the Internal Revenue Service <br />that such payments are ordinary income of the employees instead of <br />deferred compensation, the City's obligation to make such payments shall <br />discontinue and in place thereof the base salary of each employee shall <br />forthwith be increased by 87.. <br />For the purpose of reporting an employee's compensation to CaIPERS, the <br />City shall include these payments as if they were a part of the employee's <br />base salary. <br />13.3 2.7% at 55 Service Retirement Benefit for Miscellaneous Members. <br />A. The City agrees to continue to provide Miscellaneous employees <br />covered by this MOU who were appointed to their Classification on or <br />before December 31, 2012 with the 2.7% at 55 Service Retirement <br />benefit. Pursuant to CaIPERS regulations, this formula shall apply only to <br />CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA] MOU: 2015 -2017 Page 55 <br />25G -57 <br />