(a) The City's method of payment of salary to Police Department employees covered by a collective bargaining agreement with the City and who are participants in the Police and Firemen's Disability and Pension (PFDPF) is hereby modified as outlined in this section in order to provide for a salary reduction pick-up of employee contributions to the PFDPF.
(b) The total annual salary and salary per pay period for each such employee shall be the salary otherwise payable under the applicable Police Department Collective Bargaining Agreement. Such total annual salary and salary per pay period of each employee shall be payable by the City in two parts: deferred salary and cash salary. An employee's deferred salary shall be equal to that percentage of said employee's total annual salary or salary per pay period which is required from time to time by the PFDPF to be paid as an employee contribution by said employee and shall be paid by the City to the PFDPF on behalf of said employee as a pick-up and in lieu of the PFDPF employee contribution otherwise payable by said employee. An employee's cash salary shall be equal to said employee's total annual salary or salary per pay period less the amount of the pick-up for said employee and shall be payable, subject to applicable payroll deductions, to said employee. The City shall compute and remit its employer contributions to the PFDPF based upon an employee's total annual salary or salary per pay period.
(c) The pick-up shall be included in the employee's total annual salary for the purpose of computing hourly rate of pay, for determining paid salary or salary adjustments to be made due to absence, or for any similar purpose.
(d) Any pick-up by the City of an employee's contributions to the PFDPF shall be mandatory for all employees who are members of the Police Department covered by a collective bargaining agreement and the PFDPF. No such member shall have the option of choosing to receive the contributed amounts directly instead of having them picked-up by the City or being excluded from such pick-up.
(e) The City shall fulfill its income tax reporting and withholding responsibilities for each Police Department employee covered by a collective bargaining agreement in such manner as is required by applicable Federal, State and local laws and regulations as they may exist at the time of such reporting and withholding. The City shall, in reporting and making remittance to the PFDPF, report that the Police Department employee's contribution for each person subject to this "pick-up" has been made as provided by statute.
(f) The Mayor, or his or her designee, is hereby directed to take all actions necessary and appropriate to initiate implementation of the provisions of this section, contingent upon any necessary approvals or rulings being obtained from agencies such as the Internal Revenue Service and the PFDPF Board.
(g) The pick-up set forth herein shall apply to all payroll payments made after January 1, 1999, to Police Department employees covered by a collective bargaining agreement.
(Ord. 106-98. Passed 12-15- 98.)