Memorandum of Understanding with Unit 12 - Dpa - State of California

6. "Wages". The term "wages" shall mean the compensation prescribed in thisAgreement.B. Pick Up of Employee Contributions.1. Pursuant to the provisions of this Agreement, the employer shall make employeecontributions on behalf of employees, and such contributions shall be treated asemployer contributions in determining the treatment under the Internal RevenueCode of the United States. Such contributions are being made by the employer inlieu of employee contributions.2. Employee contributions made under the first paragraph of this Section shall bepaid from the same source of funds as used in paying the wages to affectedemployees.3. Employee contributions made by the employer under the first paragraph of thisSection shall be treated for all purposes other than taxation in the same manner andto the same extent as employee contributions made prior to the effective date of thisAgreement.4. "The employee does not have the option to receive the employer contributedamounts paid pursuant to this Agreement directly instead of having them paid to theretirement system."C. Wage Adjustment.Notwithstanding any provision of this Agreement on the contrary, the wages ofemployees shall be reduced by the amount of employee contributions made by theemployer pursuant to the provisions hereof.D. Limitations to Operability.This Article shall be operative only as long as the State of California pick up ofemployee retirement contributions continues to be excludable from gross income ofthe employee under the provisions of the Internal Revenue Code.E. Non-Arbitrability.The parties agree that no provisions of this Section shall be deemed to be arbitrableunder the grievance and arbitration procedure contained in this Agreement.11.5 401(K) Deferred Compensation ProgramEmployees of Unit 12 are to be included in the State of California, Department of PersonnelAdministration, 401(K) Deferred Compensation Program.11.6 Alternative Pre-retirement Death BenefitThe Union agrees to support legislation that would provide State employees with animproved “alternative pre-retirement death benefit” and for the ability for the survivingspouse and dependent children to continue to receive health and dental benefits coverage.The enhanced death benefits would also be payable to surviving spouses or dependentchildren who are currently receiving the former death benefit, as would health and dentalcoverage.73BU 12(99-01)