(a) (1) The full amount of the statutorily required contributions to the Public Employees Retirement System of Ohio shall be withheld from the gross pay of each person within any of the classes established in this section employed by the village as of December 31, 2001 and shall be “picked up” (assumed and paid to the Public Employees Retirement System of Ohio) by the village. This “pick up” by the village is, and shall be designated as, Public Employee Contributions and shall be in lieu of contributions to the Public Employees Retirement System of Ohio by each person within any of the classes established in this section. No person subject to this “pick up” shall have the option of choosing to receive the statutorily required contribution to the Public Employees Retirement System of Ohio directly instead of having it “picked up” by the village or of being excluded from the “pick up.”
(2) The village shall, in reporting and making remittance to the Public Employees Retirement System of Ohio, report that the Public Employees contribution for each person subject to this “pick up” has been made as provided by the statute.
(b) The “pick up” by the village provided by this section shall apply to all full-time employees of the village who are or become contributing members of the Public Employees Retirement System as of December 31, 2001.
(c) The village’s method of payment of salary to employees who are participants in PERS as of December 31, 2001, the Public Employees Retirement System of Ohio, is hereby modified in order to provide for a salary reduction pick-up of employee contributions to the Public Employees Retirement System, as follows. The total salary for each employee shall be the salary otherwise payable under village policies. The total salary of each employee shall be payable by the village in two parts: deferred salary and 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 Public Employees Retirement System of Ohio to be paid as an employee contribution by that employee, and shall be paid by the village to the Public Employees Retirement System of Ohio on behalf of that employee as a pick-up in lieu of the Public Employees Retirement System employee contribution otherwise payable by that employee. An employee’s cash salary shall be payable subject to the appreciable payroll deductions to that employee. The village shall compute and remit its employer contribution to the Public Employees Retirement System of Ohio based upon an employee’s total salary. The total combined expenditures of the village for the employees’ total salaries payable under applicable village policies and the pick-up provisions of this resolution shall not be greater than the amounts it would have paid for those items had this provision not been in effect.
(d) The Village Clerk-Treasurer is hereby authorized and directed to implement the provisions of this section to institute the “pick up” of the statutorily required contributions to the Public Employees Retirement System of Ohio for those persons reflected in this section, so as to enable them to obtain the result in federal and state tax deferment.
(e) Full-time employees employed by the village after December 31, 2001, shall have four and one-half percent of their salary deducted and deposited by the village in the public employees retirement system as their employees contribution or part thereof in accordance with state law. Should employee contributions be required in excess of four and one-half percent of salary, the village shall “pick up” such excess employee contributions in the same manner as described above in this section.
(f) The village shall make such employer contributions as required by and in accordance with state law.
(g) Part-time village employees not otherwise provided for in the Codified Ordinances shall have deducted from their pay the statutorily required employee contribution to the public employees retirement system (PERS) which the village shall deposit along with its own statutorily required employee contribution in PERS.
(Ord. 90-30, passed 6-4-1990; Am. Ord. 91-25, passed 7-15-1991; Am. Ord. 2001-46, passed 12-18-2001)
Statutory reference:
Public Employees Retirement System generally, see Ohio R.C. Chapter 145