(a) Effective July 1, 1995, the full amount of the statutorily required contributions to the Public Employees Retirement System of Ohio (PERS) 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) hereof and shall be "picked-up" (assumed and paid to the Public Employees Retirement System of Ohio and the Police and Firemen's Disability and Pension Fund) by the City of Olmsted Falls, Ohio. This "pick-up" by the City of Olmsted Falls, Ohio, is, and shall be designated as, public employee contributions and shall be in lieu of contributions to the Public Employees Retirement System of Ohio and the Police and Firemen's Disability and Pension Fund by each person within any of the classes established in subsection (b) hereof. 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 the Police and Firemen's Disability- and Pension Fund directly instead of having it "picked-up" by the City of Olmsted Falls, Ohio, or the option of being excluded from the "pick-up". The City of Olmsted Falls shall, in reporting and making remittance to the Public Employees Retirement System of Ohio and to the Police and Firemen's Disability and Pension Fund, report that the public employee's contribution for each person subject to this "pick-up" has been made as provided by this section.
(b) The "pick-up" by the City of Olmsted Falls, Ohio, as provided by this section, shall apply to all persons who are elected officials and covered employees of the City of Olmsted Falls, Ohio, who are or become contributing members to the Public Employees Retirement System of Ohio or to the Police and Firemen's Disability and Pension Fund.
(c) The City's method of payment of salary to employees who are participants in the Public Employees Retirement System of Ohio or the Police and Firemen's Disability and Pension Fund is hereby modified as follows, in order to provide for a salary reduction "pick-up" of employee contributions to the Public Employees Retirement System of Ohio or the Police and Firemen's Disability and Pension Fund. The total salary for each employee shall be the salary otherwise payable under the City's policies. Such total salary of each employee shall be payable by the City in two parts: (1) deferred salary, and (2) cash salary. An employee's deferred salary shall be equal to that percentage of his or her total salary which is required from time to time by the Public Employees Retirement System or the Police and Firemen's Disability and Pension Fund to be paid as an employee contribution by that employee, and shall be paid by the City of Olmsted Falls, Ohio, to the Public Employees Retirement System or the Police and Firemen's Disability and Pension Fund on behalf of that employee as-a "pick-up" and in lieu of the Public Employees Retirement System or the Police and Firemen's Disability and Pension Fund employee contribution otherwise payable by that employee. An employee's cash salary shall be equal to his or her total salary less the amount of the "pick-up" for that employee, and should be payable, subject to applicable payroll deductions, to that employee. The City shall compute and remit its employer contributions to the Public Employees Retirement System of Ohio and to the Police and Firemen's Disability and Pension Fund based upon an employee's total salary. The total combined expenditures of the City for such employees' total salaries payable under applicable City 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 Director of Finance and Director of Law are hereby authorized and directed to initiate implementation of the provisions of this section to institute the "pick-up" of the statutorily required contributions, by making application to the Public Employees Retirement System of Ohio, to the Police and Firemen's Disability and Pension Fund and to the Internal Revenue Service for those persons referred to in subsection (b) hereof, so as to enable them to obtain the result in Federal and State tax deferments and other benefits.
(e) The policy established in this section shall not be implemented unless and until written approval of the same has been received from the Public Employees Retirement System of Ohio and the Police and Firemen's Disability and Pension Fund and until a private letter ruling has been received from the Internal Revenue Service.
(Ord. 35-95. Passed 3-28-95.)