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(a) Effective July 31, 1994, the full amount of the statutorily required contributions to the Police and Fire Disability and Pension Fund (PFDPF) shall be withheld from the gross pay of each person within any of the classes established in subsection (b) hereof and shall be picked-up (assumed and paid to the PFDPF) by the City. This pick-up by the City is, and shall be designated as, public employee contributions and shall be in lieu of contributions to the PFDPF by each person within any of the classes established in subsection (b) hereof. No person subject to this pick-up shall have the option of choosing to receive the statutorily required contribution to the PFDPF 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 the PFDPF, 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 City, provided by this section shall apply to all persons who are employees of the City who are or become contributing members of the PFDPF.
(c) The City's method of payment of salary to employees who are participants in the PFDPF is hereby modified as follows, in order to provide for a salary reduction pick-up of employee contributions to the PFDPF:
(1) The total salary for each employee shall be the salary otherwise payable under City policies. Such total salary of each employee shall be payable by the City in two parts:
A. Deferred salary; and
B. 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 the PFDPF, to be paid as an employee contribution by that employee, and shall be paid by the City to the PFDPF on behalf of that employee as a pick-up and in lieu of the PFDPF 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.
(2) The City shall compute and remit its employer contributions to the PFDPF based upon an employee's total salary. The total salaries payable under applicable City 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 section not been in effect.
(d) The Director of Finance is hereby authorized and directed to implement the provisions of this section to institute the pick-up of the statutorily required contributions to the PFDPF for those persons referred to in subsection (b) hereof, so as to enable them to obtain the result in Federal and State tax deferments and other benefits.
(Res. 94-R71. Passed 7-26-94.)