(A) Generally. Notwithstanding any ordinance to the contrary, the city shall be authorized to enter into a written contract with any of its employees to defer any allowable part of the employee’s gross compensation and may invest the funds in any manner as prescribed by the Deferred Compensation Program of the city, as permitted under subsequent provisions of this section. The Deferred Compensation Program established by this section shall exist and serve in addition to retirement, pensions, and benefit systems established by the city. Any income deferred under a plan shall continue to be included as regular compensation for the purpose of computing the retirement and pension benefits earned by an employee. However, it is exempt from taxation by the state to the same extent as it is exempt from income tax imposed by the United States.
(B) Scope and coverage. As used in this section, EMPLOYEE means any person, whether appointed, elected, or under contract, providing services for the city for which compensation is paid.
(C) Deferred Compensation Commission; membership; duties. There is established a City Public Employees Deferred Compensation Commission, which shall approve any deferred agreement entered into pursuant to this section, and shall oversee the orderly administration of the assets held by the city under the agreement. The Commission shall consist of the Mayor, or his or her representative, and the City Manager, or his or her representative, each of whom shall serve for a term commensurate with his or her term in office; plus three city employees appointed by the Mayor with the consent of the Council, who shall serve for a term of four years commencing with their appointment. The Commission shall annually elect a Chairperson and shall be required to meet not less than annually or at any other time as called by the Chairperson or a majority of the Commission.
(D) Establishment and administration of plan; copy on file. Subject to the Public Employees Deferred Compensation Commission, the Mayor shall establish and administer a deferred compensation plan for the employees of the city. The Commission may directly or through the Mayor contract with a private corporation or institution for providing the services as may be part of any plan or may be deemed necessary or proper by the Commission or the Mayor, including, but not limited to, communicating the plan to employees, providing consolidated billing, individual and collective record keeping, and accounting as an asset purchase control and safekeeping. The City Public Employee Deferred Compensation Plan is a part of this division (D). A copy is on file in the office of the Clerk-Treasurer.
(E) Participation by employees; agreement; limitation. Participation in the plan shall be a specific written agreement between the employee and the city, which shall provide for the deferral of amounts of compensation as requested by the employee. Participating employees must authorize deferrals from their wages for the purpose of participation in the program. However, in no event shall the total of the amount of deferred compensation to be set aside under a deferred compensation program exceed the limits established in § 131 of the Revenue Act of 1978 and incorporated in § 457 of the Revenue Code.
(F) Investment of deferred monies in insurance and annuity plans. Funds held by the Public Employees Deferred Compensation Commission pursuant to a written deferred compensation agreement between the city and participating employees may be invested as deemed appropriate by the Mayor and approved by the Commission, including, but not limited to, insurance and annuity contracts. These investments shall not be construed to be a prohibited use of the general assets of the city. In no case shall insurance investments be offered by other than persons and companies authorized and duly licensed by the state and applicable federal regulatory agencies to offer insurance or investment programs in compliance with all relevant provisions of this section.
(G) Limitation of city financial liability. The financial liability of the city shall be limited in each instance to the value of the particular insurance or annuity contract or other investment options purchased on behalf of any employee.
(1985 Code, § 9-6-2) (Ord. 2-1983, passed 6-14-1983; Ord. 1998-7, passed 11-12-1998)