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ARTICLE X.111 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 Ca1PERS for employees covered by said contract as amended. 13.2 Deferred Retirement, The City shall continue to make payment to CaIPERS on behalf of each employee covered by this MOU in accordance with the following schedule: A. With respect to Safety employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA), 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 employees covered by this MOU who do not qualify as "New Members" under the California Public Employees' Pension Reform Act of 2013 (PEPRA) the City shall pay an amount equal to eight - eighths (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 MOU 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, hi 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 Swom Safety employees who do not qualify as "New Members" and sixteen (16) salary rate ranges ($.0 %) for Miscellaneous employees who do not qualify as "New Members" covered by this MOU. 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 CalPERS Fourth Level of 1959 Survivors Benefits. The City will provide CaIPERS fourth level of 1959 Survivors Benefit to all eligible employees in the unit. 52 25E -54