§ 31.34  MEMBER CONTRIBUTIONS.
   (A)   Required contributions.
      (1)   Service employees. As a condition of employment, eligible employees are required to make mandatory employee contributions to the plan. Contributions shall be based on a percentage of an employee's compensation for service and shall be equal to the following:
               Contribution
   Effective Date         Rate
   July 1, 2007         5.5%
   July 1, 2008         5.5%
   July 1, 2009         5.5%
   July 1, 2010         6.0%
   July 1, 2011         6.0%
   July 1, 2012         6.5%
   July 1, 2013         7.0%
   July 1, 2014         7.5%
   July 1, 2015         7.75%
   July 1, 2016         8.0%
      (2)   Guardian employees. Effective January 1, 2000, as a condition of employment, eligible employees are required to make mandatory employee contributions to the plan. Contributions shall be based on an employee's compensation, but shall exclude holiday pay, for service on and after January 1, 2000, and shall be equal to the following:
         (a)   For guardian employees who were members of the plan on July 1, 1998:
               Contribution
   Effective Date         Rate
   July 1, 2001         5%
   July 1, 2000         4%
   January 1, 2000      3%
         (b)   For guardian employees who first become members of the plan on or after January 1, 2000, the contribution rate shall equal 5% of compensation.
         (c)   For all guardian employees who are eligible employees, regardless of when they became members of the plan, the contribution rate shall be equal to the following:
               Contribution
   Effective Date         Rate
   July 1, 2006         5%
   July 1, 2007         6%
   July 1, 2008         6.5%
   July 1, 2009         7%
   July 1, 2010         7.5%
   July 1, 2011         8%
   July 1, 2012         8.%
   July 1, 2013         8.5%
   July 1, 2014         8.5%
         (d)   Employees who became members prior to July 1, 1986 were required to make member contributions under the terms of the plan and the collective bargaining agreement in existence prior to that date. From July 1, 1986 through December 31, 1999, member contributions were neither required nor permitted.
      (3)   Service employees who continue to work beyond July 1, 2008 and have reached the cap on credited service shall not be required to make the above referenced contributions. Guardian employees who continue to work beyond June 30, 2006 and have reached the cap on credited service shall not be required to make the above referenced contributions.
   (B)   Employer pick-up contributions.
      (1)   Effective January 1, 2000, pursuant to Section 414(h)(2) of the Internal Revenue Code, the town shall pick up and pay the contributions that otherwise would be payable by each member. The contributions so picked-up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from each member's earnings.
      (2)   Member contributions picked up by the town shall be paid from the same source of funds used for the payment of salaries to employees. A deduction shall be made from each member's compensation equal to the amount of the member contributions picked up by the town, provided that such deduction shall not reduce the member's compensation for purposes of computing benefits under this plan.
      (3)   Member contributions picked-up by the town shall be credited to a separate account for each member, so that member contributions made prior to January 1, 2000 may be distinguished from the member contributions picked-up by the town on and after January 1, 2000.
   (C)   Interest on member contributions. Member contributions shall be credited with interest compounded annually as follows:
   Interest Rate         Effective Date
   2%            Prior to May 29, 1969
   4%            June 1, 1969 - June 30, 1981
   5%            July 1, 1981
   (D)   Return of member contributions. Any person ceasing to be a member for any cause other than death, retirement under the plan, or under circumstances which entitle the member to a vested pension, shall be paid in one lump sum his/her accumulated contributions within six months after termination of participation in the plan.
   (E)   Repayment of member contributions upon re-employment.
      (1)   A non-vested member with a minimum of one year of credited service with the town who terminates employment, receives a distribution of accumulated contributions and again becomes re-employed by the town may have his/her previous service with the town restored, provided the member returns to employment with the town within five years of his/her termination date and upon repaying the amount of his/her accumulated contributions, plus interest at the rate of 5% calculated from the date of distribution to the date of re-employment. Payment must be made in one lump sum payment within 60 days of the member's date of reemployment.
      (2)   In no event may a member's credited service and vesting service be restored if he/she has incurred a permanent break in service under the provisions of § 31.33(D).
(Ord. 435, passed 3-12-01; Am. Ord. 551, passed 6-5-07; Am. Ord. 575, passed 6-1-09; Am. Ord. 666, passed 12-7-15)