(A) The city shall pick up (make direct payment of) all mandatory employee contributions required to be made by any employee of the said city pursuant to any provision of law, including but not limited to the provisions of Article IX of the Oregon Constitution, as amended by the adoption of Ballot Measure 8 of 1994.
(B) As required by § 10, Article IX of the Oregon Constitution, except to the extent otherwise permitted by law and required by the obligation of any valid and enforceable contract of the city, the salary or gross wages of any such employee as for whom such pick up is made shall be reduced by an amount equal to such pick up 6% of such salary or gross wages, so that such employee shall not thereby be relieved of the obligation of said § 10, Article IX of the Oregon Constitution.
(C) For income tax purposes, it is hereby specified that such contributions, although otherwise deemed employee contributions under § 10, Article IX of the Oregon Constitution, are paid by the employer, and the employee has no option to receive the amounts contributed into the retirement plan or system, and the amount of such pick up contribution shall be excluded from, and shall reduce, the amount of gross wages stated and repotted on the employee’s form W-2 which is filed with the United States Department of Treasury, Internal Revenue Service.
(D) It is hereby determined that the impact of the requirements of Ballot Measure 8 will have a material adverse effect upon the net wages of the employees of the city, and upon the morale of such employees, and for such reason an emergency is declared to exist, and the adoption of this section is found to be immediately necessary for the public safety, health, and welfare, and this section, which mitigates the adverse effect of such measure on employees of the city, without adverse effect to the city, shall become effective immediately upon its passage.
(Ord. 212, passed 12-19-1994)