(a) Effective May 20, 1990, the full amount of the statutorily required contributions to the Public Employees Retirement System of Ohio and the Police and Firemen's Disability and Pension Fund shall be withheld from the gross pay of each person within any of the classes established in subsection (b) herein, and shall be "picked up" (assumed and paid to the Public Employees Retirement System of Ohio [ "PERS"] or Police and Firemen's Disability and Pension Fund ["PFDPF"], as applicable) by the Village of New London. This "pick up" by the Village of New London is, and shall be designated as, public employee contributions and shall be in lieu of contributions to the Public Employee Retirement System of Ohio or Police and Firemen's Disability and Pension Fund by each person within any of the classes established in Subsection (b) herein. 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 or Police and Firemen's Disability and Pension Fund directly instead of having it 'picked up" by the Village of New London or of being excluded from the "pick up".
The Village of New London shall, in reporting and making remittance to the Public Employees Retirement System of Ohio or Police and Firemen's Disability and Pension Fund, as applicable, report that the public employees contribution for each person subject to this "pick up" has been made as provided by statute.
(b) The "pick up" by the Village of New London provided by this section shall apply to all persons that are employees of the Village of New London who are or become contributing members of the Public Employees Retirement System of Ohio or the Police and Firemen's Disability and Pension Fund.
(c) The Village's method of payment of salary to employees who are participants in PERS or PFDPF is hereby modified as follows, in order to provide for a salary reduction pick- up of employee contributions to PERS or PFDPF:
The total salary for each employee shall be the salary otherwise payable under the Village policies. Such total salary of each employee shall be payable by the Village 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 PERS or PFDPF to be paid as an employee contribution by that employee, and shall be paid by the Village to PERS or PFDPF on behalf of that employee as a pick up and in lieu of the PERS or 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. The Village shall compute and remit its employer contributions to PERS or PFDPF based upon an employee's total salary. The total combined expenditures of the Village for such employees' total salaries payable under applicable village 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 provision not been in effect.
(d) The Fiscal Officer 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 Employee Retirement System of Ohio or the Police and Firemen's Disability and Pension Fund for those persons reflected in Subsection (b) herein so as to enable them to obtain the result in federal and state tax deferments and other benefits.
(e) (1) A. For those Regular, Full-time employees of the Village of New London who are subject to the Public Employees Retirement System who would otherwise have paid 8.5% of their income to the retirement system through payroll deductions, effective January 1, 1995 and thereafter the Village will contribute 45.5% to the system, which will reduce the contribution of its employees to 4%.
B. In recognition of the increase in State Contribution rates which became effective January 1, 2006, from and after that date, the employee will continue to contribute at the existing rate of 4% , and the Village will contribute the balance of the required contribution, until further action maybe taken to the contrary in the future by Council.
C. Notwithstanding the foregoing, in recognition of the increase in State contribution rates which will become effective January 1, 2007, the Employee will contribute at the rate of 4.50% and the Village will contribute the balance ofthe required contribution, until further action maybe taken to the contrary in the future by Council.
D. Notwithstanding the foregoing, in recognition of the increase in State Contribution rates which will become effective January 1, 2008, the Employee will contribute at the rate of 5 % , and the Village will contribute the balance of the required contribution, until further action may be taken to the contrary in the future by Council.
(2) A. For those Regular, Full-time employees of the Village of New London who are subject to the Police and Firemen's Disability and Pension Fund who would otherwise have paid 10% of their income to the retirement system through payroll deductions, effective January 1, 1995 and thereafter, the Village will increase it contribution to the system to 4.5 %, which will reduce the contribution of its employees to 5.5% . In recognition of the increase in State contribution rates which became effective January 1, 2006 , from and after that date, the employee will continue to contribute at the existing rate of 5.5% and the Village will contribute the balance of the required contribution, until further action may be taken to the contrary in the future by Council.
B. Notwithstanding the foregoing, in recognition of the increase in state contribution rates which will become effective January 1, 2013, the employee will contribute at the rate of 5% , and the Village will contribute the balance of the required contributions, until further action may be taken to the contrary in the future by Council.
(3) The "Regular, Full-Time employees" mentioned hereinabove shall include only permanent full-time employees and not probationary employees, part- time employees, and/ or summer or seasonal employees.
(f) The picked up contributions authorized by this section will not be included by the Village in the gross income of the employees for federal or state tax reporting process.
(Ord. 2012-49. Passed 12-27-12.)