(A)
The city hereby adopts a plan, as set forth in division (F) of this section, to allow employees who are members of the Ohio Police & Fire Pension Fund (OP&F) to purchase additional service credit and/or to redeposit withdrawn contributions on a tax deferred basis as permitted by Internal Revenue Code Section 414(h)(2).
(B) A contribution made under this plan, although designated as an employee contribution, is picked up by the city and is paid by the city as an employer contribution.
(C) A member electing to make contributions under this plan shall not have the option of receiving the money directly instead of having it paid by the employer to the pension plan.
(D)
The plan is in addition to any other plan that may exist allowing for the purchase of service credit in OP&F.
(E)
The Finance Officer/Tax Commissioner is hereby authorized to implement this plan in accordance with directives of the.
(F) Tax deferred service credit purchase plan.
(1) Effective June 1, 1998 employees and elective officials of the city who are contributing members of the Ohio Police & Fire Pension Fund (OP&F), may purchase additional service credit pursuant to R.C. §§ 742.221, 742.23, 742.24, 742.251, 742.371, 742.372, 742.373, 742.375, 742.376, 742.379, 742.52 and 742.56 on a tax deferred basis, and the city shall withhold from the gross pay of each person electing to purchase service credit the appropriate installment payment as a payroll deduction and shall “pick-up” (meaning assume and pay) such deduction, and pay to the OP&F such same deduction as a picked up contribution so as to be treated as an employer contribution pursuant to Internal Revenue Code section 414(h)(2). A person electing this “pick-up” deduction shall not have the option of choosing to receive the payroll deduction directly instead of having this deduction picked up by the city. A payroll deduction plan shall not last longer than 60 months, or if less, the period of service to be purchased.
(2) An election to purchase service credit pursuant to this tax deferred plan is irrevocable. Members who elect to participate in this plan cannot increase, decrease or terminate the amount of the picked-up deduction until the repayment or purchase is completed in full, or until employment is terminated. All terminology used in this plan shall have the same meaning as encompassed in Ohio Administrative Code rule 742-5-08 and any other rule of the OAC or the Ohio Revised Code where such section, rule, or definition is essential to accomplish the purchase of service credit on a tax deferred basis.
(3) The Finance Officer/Tax Commissioner shall not accept an election to purchase service credit by payroll deduction for more than one type of service credit at the same time, nor for service credit which is being purchased by a lump sum payment.
(4) The Finance Officer/Tax Commissioner shall implement the provisions of this plan in coordination with the OP&F. The Finance Officer/Tax Commissioner shall report to the OP&F all members who have authorized payroll deductions pursuant to this tax deferred plan.
(5) This plan is a tax deferred plan which means that Federal Income taxes will not be paid by the employee, or withheld by the employer, on the amounts deducted for the purchase of service credit. Taxes shall be paid on such amounts at the time of retirement or refund of such amounts from the OP&F.
(Ord. 33-1998, passed 5-20-98; Am. Ord. 50-2023, passed 12-6-23)