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6.1. C. - Page 15 compensation for establishing special compensation under California Public Employees Retirement System rules (PERS section 20023(c)(4). 13.2 For COA unit members hired prior to the 2011 amendment of the City's contract with CaIPERS, retirement benefits shall be those established by the Public Employees' Retirement System (PERS) for Local Safety Members three percent (3%) at fifty (50) formula. For COA unit members hired on or after the 2011 amendment of the City's contract with CaIPERS, retirement benefits will be those established by CaIPERS for Local Safety Members, three percent (3%) at age fifty-five (55) formula. 13.3 Retirement benefits for COA unit members hired prior to the 2011 amendment of the City's amendment of its contract with CaIPERS shall be one (1) year highest compensation PERS retirement benefit, as authorized by Section 20042 of the Government Code. Retirement benefits for COA unit members hired on or after the 2011 amendment of the City's contract with CaIPERS will be calculated based on the average of three years of compensation as authorized by Section 20037 of the Government Code. 13.4 In accordance with Section 20516(f) of the Government Code: Effective the first full pay period beginning on or after January 1, 2012, each unit member shall pay two and one-half percent (2.5%) toward the employer cost of retirement. Effective the first full pay period beginning on or after January 1, 2013, each unit member shall pay an additional two and one-half percent (2.5%) for a total of five percent (5%) toward the employer cost of retirement. The five percent (5%) employee cost sharing of the employer cost of retirement identified above shall continue through the final full pay period in September 2013. The City and the COA shall discuss the possible continuation of the employee cost sharing of the employer cost of retirement in future negotiations. All such employee contributions toward employer cost of retirement will be made on a pre-tax basis in accordance with Section 414(h)(2) of the Internal Revenue Code. The contributions shall not be credited to the employee account at CaIPERS and shall not be reimbursed to the contributor by the City at any time for any reason. 13.5 Exit Incentive Plan (EIP) An employee who retires with a Service Retirement from the City between and including the date this tentative agreement is ratified and adopted, and June 30, 2012, will be eligible to receive a payment under the City's EIP equivalent to the cost of purchasing two years of additional service credit with CaIPERS. Such payment will be made by the City into an account for the retiree within the City Council approved tax deferred IRC Section 401(a) Plan. EIP's are only offered to those who retire on a service retirement. If an employee has a disability retirement application pending with CaIPERS at the time of service retirement, the employee is not eligible for the EIP but remains eligible for the industrial disability retirement. An employee who elects to participate must notify the City in writing no later than three months before their planned retirement date. The details of that Plan are set forth in the Plan Document dated January 1, 2004. The City may amend said Plan from time to time to conform to law and provide for the general administration of the Plan. The employee will sign a release agreement stating they agree with these terms and conditions of the EIP before receiving the benefit. 8