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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 Employees' <br />Retirement System (CaIPERS) in accordance with its contract with CalPERS for <br />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 or <br />her individual employee retirement contribution. <br />B, With respect to Miscellaneous employees covered by this MOU who do not qualify <br />as "New Members" under the California Public Employees' Pension Reform Act <br />of 2013 (PEPRA) the City shall pay an amount equal to eight -eighths (8/8ths) of <br />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 have <br />been changed by reason thereof, As a result, the City will not treat these payments <br />as ordinary income and thus, will not withhold federal or state income tax from said <br />payments. The City has received an opinion or ruling from the Internal Revenue <br />Service confirming that these payments are deferred compensation, not ordinary <br />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 Safety <br />employees who do not qualify as "New Members" and sixteen (16) salary rate <br />ranges (8.0%) for Miscellaneous employees who do not qualify as "New Members" <br />covered by this MOU. <br />For the purpose of reporting an employee's compensation to CaIPERS, 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 fourth <br />level of 1959 Survivors Benefit to all eligible employees in the unit, <br />50 <br />