(A) Pursuant to present federal and state law, all full-time employees of the city who contribute to the public employees retirement system (PERS) may defer the federal and state income taxes on a portion of their wages and salaries if the city picks up the statutorily required contribution by such employees to PERS.
(B) The city will not incur any additional costs in the deferment of federal and state income taxes.
(C) Subject to division (D) below, the full amount of the statutorily required contribution to PERS shall be withheld from the gross pay of each employee and shall be “picked up” (assumed and paid to PERS). Such pickup shall be in lieu of contributions to PERS by each employee. No employee subject to this pick-up shall have the option of choosing to receive the statutorily required contribution to PERS directly instead of having it picked up by the city, or of being excluded from the pick-up. The city shall, in reporting and making remittance to PERS, report that the public employee’s contribution for each person subject to such pick-up has been made as provided by statute.
(D) If any person entitled to PERS pick-up under this section is subject to a pick-up by the city of his or her statutorily required contribution to PERS, other than as provided by this section, the pick-up provided in this section shall apply only to an amount equal to the difference between the full amount of that person’s statutorily required contribution to PERS and the amount which is picked up by the city, other than as provided by this section.
(E) The gross wage or salary of any person subject to the pick-up provided by this section shall not change as a result of such pick-up.
(F) The PERS pick-up provided in this section is effective with respect to all full-time elected and non- bargaining unit employees who contribute to PERS as of 5-1-1984; and with respect to full-time employees of the A.F.S.C.M.E. bargaining unit who contribute to PERS, as of 8-1-1985.
(G) The Director of Finance is hereby directed to implement the provisions of this section to effect the pick-up of the statutorily required contributions to PERS for those employees within the classes established in division (A) above so as to enable them to obtain the resulting federal and state tax deferments and other benefits.
(Prior Code, § 254.11) (Ord. 69-1984, passed 4-23-1984; Ord. 136-1985, passed 7-22-1985)