118-84 City to pay into PERS, Police & Fire Pension funds

Home Browse Search

ORDINANCE NO. 118-84 BY: Brown, Chinnock, Gallagher, Graham, McBride, Salmon, Wendling AN EMERGENCY ORDINANCE authorizing and directing a plan whereby the City of Lakewood will assume and pay employee contributions to the Public Employ- ees Retirement Fund and the Police and Firemen's Disability and Pension Fund. WHEREAS, pursuant to current state and Federal law, the employees of the City of Lakewood who are members of the Public Employees Retirement System of Ohio or the Police and Firemen's Disability and Pension Fund can defer taxa- tion on a portion of their wages and therefore realize an immediate increase in pay if the City of Lakewood will "pick up" (assume and Pay) the statutorily re- quired contribution of such employees to the Public Employees Retirement System of Ohio or the Police and Firemen's Disability and Pension Fund, and WHEREAS, the City of Lakewood will not incur any additional costs in such deferment of Federal and State income taxes pursuant to the provisions of this ordinance, and WHEREAS, this ordinance constitutes an emergency measure providing for the usual daily operation of a municipal department; now, therefore, BE IT ORDAINED BY THE COUNCIL OF CITY OF LAKEWOOD, STATE OF OHIO: Section 1. Effective April l, 1985, the City of Lakewood shall "pick up" assume, and pay the statutorily required employee contributions of each person described in Section 2 herein to the Public Employees Retirement System of Ohio and of each person described in Section 3 herein to the Police and Firemen's Disability and Pension Fund, such contributions as are required by Sections 145.47 and 742.31, Ohio Revised Code. The City of Lakewood shall pay these employee contributions from the same source of fund which is used in paying earnings to the described ~employees. Pursuant to this "pick up" of employee contributions by the City of Lakewood, the gross salary of each person described in Section 2 and Section 3 herein shall be reduced by the full amount of the statutorily required employee contribution. The employee contributions so "picked up" by the City of Lakewood shall be treated for all purposes of the Public EmPloyee Retirement System and the Police and Firemen's Diability and Pension Fund in the same manner and to the same extent as employee contributions made prior to the commencement of the "pick up" program, and therefore the contributions so "picked up" shall be in- cluded in "compensation" for the purposes of the Public Employees Retirement Sys- tem and the Police and Firemen's Disability and Pension Fund. The employee contributions so "picked up" by the City of Lakewood shall also be included in "compensation" for purposes of ordinances fixing or providing for the fixing, by the appointing authorities, of salaries and compensation of officers and employees of the City within %he schedules of compensation established by Council pursuant to the Amended Charter of the City of Lakewood and for purposes of determining the salary of elected officers or members of a board or commission. The contributions "picked up" by the City of Lakewood, although desig- nated as employee contributions under the Public Employees Retirement System of Ohio and the Police and Firemen's Disability and Pension Fund, are being paid by the City of Lakewood in lieu of contributions by each person described in Sec- tion 2 and Section 3 herein, and as such shall be treated as employer contribu- tions in determining tax treatment under the Internal Revenue Code. No person subject to this "pick up" shall have the option of choosing to receive the sta- tutorily required contribution directly instead of having it paid by the City of Lakewood or the option of being excluded from the "pick up" plan. Section 2. The "pick up" by the City of Lakewood of employee contri- butions to the Public Employee Retirement System, subject to the provisions of Section 1 hereof, shall apply to all employees of the City of Lakewood, including employees of the Lakewood Municipal Court and all elected officials of the City and Lakewood Municipal Court of the City, who are members of the Public Employees Retirement System but excluding Lakewood Hospital Employees.