(A) The reserve for employee contributions shall be the account in which shall be accumulated, at regular interest, the contributions deducted from the compensation of members and from which shall be made refunds and transfers of accumulated contributions as provided in this chapter.
(B) A member's contributions to the retirement system shall be the applicable following amounts: benefit group general - 5% of compensation.
(C) (1) The person or persons responsible for preparing the city payroll shall cause the contributions provided for in division (B) to be deducted from the compensation of each member on each and every payroll. The deducted contributions shall be paid to the retirement system and shall be credited to the member's individual accounts in the reserve for employee contributions.
(2) Members' contributions shall be made notwithstanding that the minimum compensation provided by law for any member shall be changed thereby. Every member shall be deemed to consent and agree to the deductions made and provided herein. Payment of compensation less the deduction shall be a full and complete discharge and acquittance of all claims and demands whatsoever for services rendered by the member during the period covered by such payment, except as to benefits provided by the retirement system. The person or persons responsible for preparing the city payroll shall certify to the City Auditor and the Board the amount of contribution deducted from the compensation of each member on each and every payroll.
(D) The accumulated contributions of a member shall be transferred from the reserve for employee contributions to the reserve for retired benefit payments upon retirement. At the expiration of a period of 3 years from the date a person without entitlement to a vested termination pension provided in § 32.12 ceases to be a member, any balance in the reserve for employee contributions unclaimed by the person or the person's legal representative shall be transferred to the reserve for undistributed investment income.
(E) (1) The city shall pick up the member contribution required by division (B) of this section for all compensation earned after the effective date of this section. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The city shall pick up the member contributions from funds established and available in the salaries account, which funds would otherwise have been designated as member contributions and paid to the retirement system. Member contributions picked up by the city pursuant to this section shall be treated for all other purposes of this and other laws of the city in the same manner and to the same extent as member contributions made prior to the effective date of this section.
(2) The effective date of this section shall be the first day of the first pay period beginning at least 60 days after the city has received notification from the Internal Revenue Service that, pursuant to § 414(h) of the United States Internal Revenue Code, the member contributions so picked up shall not be included in gross income for tax purposes until such time as they are distributed by refund or benefit payment.
(Ord. passed 11-20-1980; Am. Ord. 86-7, passed 12-4-1986; Am. Ord. 09-01, passed 2-5-2009)