(A) (1) Effective April 18, 1993, the full amount of the statutorily required contributions to the Public Employees Retirement System of Ohio shall be withheld from the gross pay of each person within the class established in division (B) herein and shall be "picked-up" (assumed and paid to the Public Employees Retirement System of Ohio) by the village. This "pick-up" by the village is, and shall be designated as, public employee contributions and shall be in lieu of contributions to the Public Employees Retirement System of Ohio by each person within the class established in division (B) herein. No person subject to this "pick-up" shall have the option of choosing to receive the statutorily required contribution to the Public Employees Retirement System of Ohio directly instead of having it "picked-up" by the village or of being excluded from the "pick-up."
(2) The village shall, in reporting and making remittance to the Public Employees Retirement System of Ohio, report that the public employee's contribution for each person subject to this "pick-up" has been made as provided by the statute.
(B) The "pick-up" by the village provided by this section shall apply to all persons who are or become employees of Amberley Village and who are or become contributing members of the Public Employees Retirement System of Ohio.
(C) The village's method of payment of salary to employees who are participants in PERS is hereby modified as follows, "in order to provide for a salary reduction pick-up of employee contributions to PERS."
(D) The total salary for each employee shall be the salary otherwise payable under village ordinances. Such total salary of each employee shall be payable by the village in two parts: deferred salary and cash salary. An employee's deferred salary shall be equal to that percentage of that employee's total salary which is required from time to time by PERS to be paid as an employee contribution by that employee, and shall be paid by the village to PERS on behalf of that employee as a pick-up and in lieu of the PERS employee contribution otherwise payable by that employee. An employee's cash salary shall be equal to that employee's total salary less the amount of the pick-up for that employee, and shall be payable, subject to applicable payroll deductions, to that employee. The village shall compute and remit its employer contributions to PERS based upon an employee's total salary. The total combined expenditures of the village for such employees' total salaries payable under applicable village policies and the pick-up provisions of this section shall not be greater than the amounts it would have paid for those items had this provision not been in effect.
(E) The Treasurer and/or the Clerk are hereby authorized and directed to implement the provisions of this section to institute the "pick-up" of the statutorily required contributions to the Public Employees Retirement System of Ohio for those persons reflected in division (B) herein so as to enable them to obtain favorable tax treatment in federal and state tax deferments and other benefits.
(Ord. C-749, passed 4-12-93)
Statutory reference:
Public Employees Retirement System (PERS), see R.C. Ch. 145