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HomeMy WebLinkAbout2012-10Member Contributions by Salary Reduction for Counties, Cities, Towns, and Other Political Subdivisions (In accordance with Chapter 822 of the 2012 Acts of Assembly (SB497)) Resolution 2012-10 WHEREAS, the Town Of Pulaski 55387 employees who are Virginia Retirement System members who commence or recommence employment on or after July I, 2012 ("FY2013 Employees" for purposes of this resolution), shall be required to contribute five percent of their creditable compensation by salary reduction pursuant to Intemal Revenue Code§ 414(h) on a pre-tax basis upon commencing or recommencing employment; and WHEREAS, the Town Of Pulaski 55387 employees who aze Virginia Retirement System members and in service on June 30, 2012, shall be required to contribute five percent of their creditable compensation by salary reduction pursuant to Intemal Revenue Code§ 414(h) on a pre-tax basis no later than July \, 2016; and WHEREAS, such employees in service on June 30, 2012, shall contribute a minimum of an additional one percent of their creditable compensation beginning on each July 1 of2012, 2013,2014,2015, and 20\6, or until the employees' contributions equal five percent of creditable compensation; and WHEREAS, the Town OfPulaski 55387 may elect to require such employees in service on June 30, 2012, to contribute more than an additional one percent each year, in whole percentages, until the employees' contributions equal five percent of creditable compensation; and WHEREAS, the second enactment clause of Chapter 822 of the 2012 Acts of Assembly (SB497) requires an increase in total creditable compensation, effective July, 2012, to each such employee in service on June 30, 2012, to offset the cost of the member contributions, such increase in total creditable compensation to be equal to the difference between five percent of the employee's total creditable compensation and the percentage of the member contribution paid by such employee on January 1, 2012. BE IT THEREFORE RESOLVED, that the Town Of Pulaski 55387 does hereby certify to the Virginia Retirement System Board of Trustees that it shall effect the implementation of the member contribution requirements of Chapter 822 of the 2012 Acts of Assembly (SB497) according to the following schedule for the fiscal yeaz beginning July I, 2012 (i.e., FY2013): Type of Em to ee Employer Paid Member Contribution Employee Paid Member Contribution Plan I ~ Plan 2 FY2013 Employ 0~ 5$ (Note: Each row must aoa up to ~ percem.~; anu BE IT FURTHER RESOLVED, that such contributions, although designated as member contributions, are to be made by the Town Of Pulaski in lieu of member contributions; and ~. BE IT FURTHER RESOLVED, that pick up member contributions shall be paid from the same source of funds as used in paying the wages to affected employees; and BE IT FURTHER RESOLVED, that member contributions made by the Town Of Pulaski under the pick up arrangement shall be treated for all purposes other than income taxation, including but not limited to VRS benefits, in the same manner and to the same extent as member contributions made prior to the pick up arrangement; and BE IT FURTHER RESOLVED, that nothing herein shall be construed so as to permit or extend an option to VRS members to receive the pick up contributions made by the Town Of Pulaski directly instead of having them paid to VRS; and BE IT FURTHER RESOLVED, that notwithstanding any contractual or other provisions, the wages of each member of VRS who is an employee of the Town Of Pulaski shall be reduced by the amount of member contributions picked up by the Town Of Pulaski on behalf of such employee pursuant to the foregoing resolutions. NOW, THEREFORE, the officers of Town Of Pulaski 55387 aze hereby authorized and directed in the name of the Town Of Pulaski to carry out the provisions of this resolution, and said officers of the Town Of Pulaski are authorized and directed to pay over to the Treasurer of Virginia from time to time such. sums as are due to be paid by the Town Of Pulaski for this purpose. overning Body Chairman CERTIFICATE I, P~TR~c.t A ~(2~.~ SE ,Clerk of the Town Of Pulaski, certify that the foregoing is a true app correct copy of a resolution assed at a lawfully organized meeting of the Town Of Pulaski held at 1+-15~S~L~ ,Virginia at ~~~~ (~'(~o'clockon~- -,-- 2012. Given under my hand and seal of the Town Of Pulaski this _Ll~day of ° ~ 5 2012. Clerk This resolution must be passed prior to July 1, 2012 and received by VRS no later than July 1 O, 2012.