(A) (1) Effective and retroactive to January 1, 1988, the full amount of the statutorily required contributions to the Police and Firemen’s Disability and Pension Fund of Ohio (PFDPF) shall be withheld from the gross pay of each person within any of the classes established in division (B) of this section and shall be “picked-up” (assumed and paid to the PFDPF) by the village. This pick-up by the village constitutes, and shall be designated as, employee contributions, and shall be in lieu of contributions to the PFDPF by each person within any of the classes established in division (B) of this section. No person subject to this pick-up shall have the option of choosing to receive the statutorily required contribution to the PFDPF directly instead of having it picked-up by the village or of being excluded from the pick-up.
(2) The village shall, in reporting and making remittance to the PFDPF, report that the public employee’s contribution for each person subject to this pick-up has been made, as provided by statute.
(B) The pick-up by the village provided by this section shall apply to all persons who are employees of the village and who are or become contributing members of the PFDPF.
(C) The village’s method of payment of salary to employees who are participants in the PFDPF is hereby modified as provided for in division (D) of this section, in order to provide for a salary reduction pick-up of employee contributions to the PFDPF.
(D) The total salary for each employee shall be the salary otherwise payable under village policies. Such total salary of each employee shall be payable by the village in two parts: (1) deferred salary; and (2) cash salary. An employee’s deferred salary shall be equal to that percentage of that employee’s total salary which is required, from time to time, by the PFDPF to be paid as an employee contribution by the employee, and shall be paid by the village to the PFDPF on behalf of that employee as a pick-up and in lieu of the PFDPF employee contribution otherwise payable by that employee. An employee’s cash salary shall be equal to the employee’s total salary, less the amount of the pick-up for that employee, and shall be payable, subject to applicable payroll deductions, to that employee. The village shall compute and remit its employer contributions to the PFDPF based upon an employee’s total salary. The total combined expenditures of the village for such employees’ total salaries, payable under applicable village 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.
(E) The Fiscal Officer is hereby authorized and directed to implement the provisions of this section to institute the pick-up of the statutorily required contributions to the PFDPF for those persons provided for in division (B) of this section so as to enable them to obtain the result in federal and state tax deferments and other benefits.
(F) (1) Ohio Police and Fire Pension Fund (OP&F) has adopted new procedures for reporting picked up contributions in order to properly prepare 1099-R forms for its members.
(2) The Village of West Alexandria Council wishes to reaffirm and amend and restate its prior resolution in order to continue the pick-up under the new procedures.
(3) Effective as of January 1, 2004, the Village of West Alexandria has determined to continue to pick-up all of the 10% mandatory contributions by the employees who are members of the Ohio Police and Fire Pension Fund through a payroll reduction.
(4) The picked up contributions paid through a payroll reduction, even though designated as employee contributions for state law purposes, are being paid by the West Alexandria Council in lieu of the contributions by the employee.
(5) The picked up contributions will not be included in the gross income of the employees for tax reporting purposes, that is, for federal or state income tax withholding taxes, until distributed from the Ohio Police and Fire Pension Fund.
(6) The picked up contributions will be included in the gross income of the employees, for employment tax purposes, as the contributions are made to the Ohio Police and Fire Pension Fund.
(7) The employees shall not be entitled to any option of choosing to receive the contributed amounts directly instead of having them paid by the Village of West Alexandria to the Ohio Police and Fire Pension Fund.
(Prior Code, § 246.14) (Ord. 596, passed 3-7-1994; Res. 2004-05, passed 5-3-2004)