2015-07

 

 

RESOLUTION THAT THE CITY OF MARION WILL PICK UP SIX PERCENT (6%) OF THE STATUTORILY REQUIRED CONTRIBUTION TO THE OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM FOR THE EMPLOYEES OF THE CITY OF MARION PURSUANT TO IRC SECTION 414(h)(2)

WHEREAS, pursuant to federal and Ohio laws, the City of Marion may offset future salary increases and "pick up" (assume and pay) the contributions statutorily required by such elected officials and covered employees to the Ohio Public Employees Retirement System (OPERS) and such individuals will not be required to pay federal and state income taxes on such contributions; and

 

NOW THEREFORE BE IT RESOLVED BY THE CITY OF MARION, OHIO, THAT:

 

Section 1.            Effective April 5, 2015, six percent (6%) of the statutorily required employee contributions to OPERS shall be picked up and paid as a fringe benefit by the City of Marion for each person within any of the classes established in Section 2 herein. The pick up shall be an offset against future salary increases. This “pick up” by the City of Marion shall be designated as public employee contributions and shall be in lieu of contributions to OPERS by each person within any of the classes established in Section 2 herein. No person subject to this “pick up” shall have the option of choosing to receive the statutorily required contribution to OPERS directly instead of having it “picked up” by the City of Marion or of being excluded from the “pick up”. The City of Marion shall, in reporting and making remittance to OPERS, report that the public employees contribution for each person subject to this “pick up” has been made as provided by the statute. Therefore, contributions, although designated as employee contributions, are employer-paid, and employees do not have the option to receive the contributions directly. All contributions are paid by the employer directly to the plan.

 

Section 2.             The six percent (6%) “pick up” by the City of Marion provided by this resolution shall apply to only these non-bargaining positions: Safety Director, Service Director, Law Director, Mayor, Municipal Court Judge, Treasurer, City Council, and the Civil Service Commission who are or become contributing members of OPERS and whose compensation cannot change during a term of office.    See Ohio Constitution Article II. § 20. Term of office, and compensation of officers in certain cases.  The general assembly, in cases not provided for in this constitution, shall fix the term of office and the compensation of all officers; but no change therein shall affect the salary of any officer during his existing term ... Ohio Constitution Article IV. Judicial(B) The judges of the Supreme Court, courts of appeals, courts of common pleas, and divisions thereof, and of all courts of record established by law, shall, at stated times, receive, for their services such compensation as may be provided by law, which shall not be diminished during their term of office.

 

Section 3.            Under the fringe-benefit method of employer pick up, salary is not modified; however, the employer will pay the six percent (6%) of the employees’ statutorily required contribution to OPERS.

 

Section 4.            The treasurer and/or the clerk are hereby authorized and directed to implement the provisions of this resolution to institute the six percent (6%) “pick up” of the statutorily required contributions to OPERS for those persons reflected in Section 2 herein so as to enable them to have their employee contributions paid by their employer.

 

Section 5.            That this resolution is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, welfare and safety of said City and for the further reason that it is necessary for the daily operation of the City; and for further reason that this legislation needs to be sent back to the Pension Board as soon as possible;  and as such shall take effect and be in force immediately upon its passage and approval by the Mayor, provided it receives the affirmative vote of two-thirds of all members elected to Council; otherwise it shall become effective from and after the earliest period allowed by law.

 

 

Approved:                                                        _________________________________

                                                                           Dave Edwards

                                                                           President of Council

 

 

______________________________

Mayor Scott Schertzer

 

Attest:

 

 

______________________________

Clerk of Council