§ 2.28.030. Contribution by employees and by the city.

(a)

For employees in Plan No. 1:

(1)

Each employee shall contribute six and four-tenths percent of his or her salary. Such six and four-tenths percent shall be deducted from each employee's salary on each payroll;

(2)

For the purpose of funding the obligation of the system under the provisions of this chapter over and above member contributions and other income accruing to the system, as herein provided, the city shall levy a tax without mill limitation, which levy may be in addition to the limits of levies now provided by law in such city for corporate or other purposes;

(3)

The city shall pick up the employee contribution required by subsection (a)(1) of this section for all salary earned after the effective date of this subsection. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The city shall pick up these employee contributions from funds established and available in the salaries account, which fund would otherwise have been designated as employee contributions and paid to the retirement fund. Employee contributions picked up by the city pursuant to this subsection shall be treated for all other purposes of this and other laws of the city in the same manner and to the same extent as employee contributions made prior to the effective date of this subsection.

The effective date of this subsection shall be November 19, 1983 pursuant to Section 414(h)(2) of the United States Internal Revenue Code; these employee contributions so picked up shall not be included in gross income for tax purposes until such time as they are distributed by refund or benefit payment.

(b)

For employees in Plan No. 2:

(1)

Each employee shall contribute four and seven-tenths percent of the employee's salary to the fund. Such contribution shall be deducted from each employee's salary at the time of payment;

(2)

For the purpose of funding the obligations of the system under the provisions of this chapter over and above member contributions and other income accruing to the system, as herein provided, the city shall levy a tax without mill limitation, which levy may be in addition to the limits of levies now provided by law in such city for corporate or other purposes;

(3)

The city shall pick up the employee contribution required by subsection (a) of this section for all salary earned after the effective date of this subsection. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code.

The city shall pick up these employee contributions from funds established and available in the salaries account, which fund would otherwise have been designated as employee contributions and paid to the retirement fund. Employee contributions picked up by the city pursuant to this subsection shall be treated for all other purposes of this and other laws of the city in the same manner and to the same extent as employee contributions made prior to the effective date of this subsection.

(c)

For employees in Plan No. 3:

(1)

Each employee shall contribute four and seven-tenths percent of salary to the fund. Such contribution shall be deducted from the employee's salary at the time of payment. Provided, an employee who has elected to continue participation in Plan No. 3 after seven years of service may contribute such additional amounts into the plan as may be permitted by the rules of the Internal Revenue Service in effect at the time of contribution;

(2)

The city shall contribute four and seven-tenths percent of salary, less forfeitures from nonvested terminations, for each employee participating in Plan No. 3;

(3)

Employee and city contributions shall be deposited in the fund within five working days of deduction of the employer's contribution;

(4)

Employee and city contributions will be credited at least monthly with investment earnings at the rate earned by the fund;

(5)

The city shall pick up the employee contribution required by subsection (c)(1) of this section for all salary earned after the effective date of this subsection. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The city shall pick up these employee contributions from funds established and available in the salaries account, which funds would otherwise have been designated as employee contributions and paid to the retirement fund. Employee contributions picked up by the city pursuant to this subsection shall be treated for all other purposes of this and other laws of the city in the same manner and to the same extent as employee contributions made prior to the effective date of this subsection.

(d)

Compensation in excess of the limitations set forth in Section 401(a)(17) of the Internal Revenue Code shall be disregarded. The limitation on compensation for employees shall not be less than the amount which was taken into account under the retirement plan as in effect on July 1, 1993. For this purpose, an "eligible employee" is an individual who was a member of the retirement plan before the first plan year beginning after December 31, 1995.

(Ord. No. 44-812 § 3)