Effective January 1, 1997, the township shall pick up each member's required contributions. No member shall have the option to forego his required contributions and receive an equal amount as compensation. A corresponding reduction in the member's salary shall be made in the amount of the picked-up required contributions. For purposes of the Internal Revenue Code, such picked-up required contributions shall be treated as employer contributions pursuant to Section 414(h)(2) of the Internal Revenue Code of 1986.