(a) There is hereby adopted for all elected or appointed officials and employees of the City a pick-up program for the employees' share of contributions to the Public Employees Retirement System or the Police and Firemen's Disability and Pension Fund, as applicable to the individual. The pick-up program shall be implemented as follows:
(1) Prior to January 1 of each calendar year, the City Auditor shall calculate for each official and employee of the City that individual's mandatory contribution for the coming year to the Public Employees Retirement System or the Police and Firemen's Disability and Pension Fund, as applicable, based upon the individual's salary or wage for the coming year as authorized by ordinance. Each individual's existing salary or wage shall be reduced by the amount which the Auditor has so calculated, and the official salary or wage (for taxation purposes only) of each such official or employee shall be considered this reduced level.
(2) Upon the Auditor's adjustment of the salary and wage levels in the manner set forth above, the City shall directly pay to the pertinent State pension authority the mandatory contribution for each official and employee of the City.
This pick-up program is established subject to the following terms and conditions:
A. These contributions are being paid by the City to the pertinent State pension fund, designated as the employee's contributions, in lieu of contributions by the employee.
B. These contributions are not optional but shall be paid by the City for all the elected or appointed officers and employees of the City.
C. This pick-up program shall be in effect and operative for all salaries, wages and employee contributions accruing from and after January 1, 1985.
(3) Notwithstanding any implication to the contrary, this pick-up program is implemented with the following understanding and under the following conditions:
A. The officer or employee contributions which are picked-up by the City shall be treated in the same manner as contributions made by the officer or employee prior to the commencement of the pick-up program and will, therefore, be included in compensation for the purposes of the Police and Firemen's Disability and Pension Fund benefit calculations or the Public Employees Retirement System benefit calculations, as applicable to the individual, and for the purposes of the City, its officers and employees in fixing salaries and compensation as authorized by contract or ordinance.
B. The City's contribution to the Police and Firemen's Disability and Pension Fund or to the Public Employees Retirement System, as applicable to the individual, will be calculated on the full salary of officers and employees before the pick-up is deducted from gross salary.
C. Nothing in this section shall be deemed to reduce an individual's salary or wage as authorized by ordinance or contract for purposes of accrual of benefits, overtime, etc., as otherwise granted by City ordinances.
(b) The City Auditor is hereby authorized and directed to make whatever administrative arrangements may be necessary in order to effectuate this plan in cooperation with the Public Employees Retirement System and the Police and Firemen's Disability and Pension Fund in a manner to assure City officers and employees the benefit of pertinent income tax regulations. Further, the Auditor is hereby authorized and directed to make whatever administrative arrangements may be necessary to accommodate changes in salary or wage rates as they may occur, in the midst of a calendar year and from year to year. Further, the Mayor and the Auditor are hereby authorized and directed to prepare a directive to all employees concerned, explaining to them the implications of this measure.
(Ord. 217-84. Passed 12-3-84.)