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ARTICLE XIII <br />13.0 RETIREMENT <br />13.1 General. The City shall continue to make contributions to the California Public <br />Employees' Retirement System (CalPERS) in accordance with its contract with CalPERS <br />for employees covered by said contract as amended. <br />13.2 Deferred Retirement. The City shall continue to make payment to CalPERS on behalf of <br />each employee covered by this MOU in accordance with the following schedule: <br />A. With respect to Safety employees covered by this MOU who do not qualify as <br />"New Members" under the California Public Employees' Pension Reform Act of <br />2013 (PEPRA), the City shall pay an amount equal to nine - ninths (9 /9ths) of his <br />or her individual employee retirement contribution. <br />B. With respect to Miscellaneous employees covered by this MOU who do not <br />qualify as "New Members" under the California Public Employees' Pension <br />Reform Act of 2013 (PEPRA) the City shall pay an amount equal to eight - eighths <br />(8 /8ths) of his or her individual employee retirement contribution. <br />Such payments shall be credited to the individual employee's CalPERS account. <br />Such payments are not increases in base salary and no salary rate range applicable <br />to any of the employees covered by this MOU shall be changed or deemed to <br />have been changed by reason thereof. As a result, the City will not treat these <br />payments as ordinary income and thus, will not withhold federal or state income <br />tax from said payments. The City has received an opinion or ruling from the <br />Internal Revenue Service confirming that these payments are deferred <br />compensation, not ordinary income. <br />In the event that the City receives a subsequent ruling from the Internal Revenue <br />Service 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 affected employee shall <br />forthwith be increased by eighteen (18) salary rate ranges (9.0 %) for Sworn <br />Safety employees who do not qualify as "New Members" and sixteen (16) salary <br />rate ranges (8.0 %) for Miscellaneous employees who do not qualify as "New <br />Members" covered by this MOU. <br />For the purpose of reporting an employee's compensation to CalPERS, the City <br />shall include these payments as if they were a part of the employee's base salary. <br />13.3 CalPERS Fourth Level of 1959 Survivors Benefits. The City will provide CalPERS <br />fourth level of 1959 Survivors Benefit to all eligible employees in the unit. <br />52 <br />