WHEREAS, pursuant to federal and Ohio laws, the employees of the Village of Granville could defer the federal and state income taxes on a portion of their wages or salaries if the Village of Granville would "pick up" (assume and pay) the statutorily required contribution by such elected officials and covered employees to the Public Employees Retirement System of Ohio; and
WHEREAS, the Village of Granville will not incur any additional costs in the deferment of federal and state income taxes.
NOW, THERFORE, Be it ordained by the Council of Granville, Ohio, that:
Section I: Effective January 1, 2000 the full amount of the statutorily required contributions to the Public Employees Retirement System of Ohio shall be withheld from the gross pay of each person within any of the classes established in Section 2 herein and shall be "picked up" (assumed and paid to the Public Employees Retirement System of Ohio) by the Village of Granville. This "pick up" bya the Village of Granville is , and shall be designated as, public employee contributions and shall be in lieu of contributions to the Public Employees Retirement System of Ohio 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 the Public Employees Retirement System of Ohio directly instead of having it "picked up" by the Village of Granville or of being excluded from the "pick up".
The Village of Granville shall, in reporting and making remittance to the Public Employees Retirement System of Ohio report that the public employees contribution for each person subject to this "pick up" has been made as provided by the statute.
Section II: The "pick up" by the Village of Granville provided by this ordinance shall apply to all persons that: Are employees of the Village of Granville who are or become contributing members of the Public Employees Retirement System of Ohio, with the exception of seasonal, part time or temporary employees.
Section III: The Village’s method of payment of salary to employees who are participants in PERS is hereby modified as follows, in order to provide for a salary reduction pick-up of employee contributions of PERS.
Section IV: The total salary for each employee shall be the salary otherwise payable under the Village policies. Such total salary of each employee shall be payable by the Village in two parts: (a) deferred salary and (b) 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 PERS to be paid as an employee contribution by that employee, and shall be paid by the Village to PERS on behalf of that employee as a pick-up and in lieu of the PERS employee contribution otherwise payable by that employee. An employees cash salary shall be equal to that employees 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 PERS 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 Resolution shall not be greater than the amounts it would have paid for those items had this provision not been in effect.
Section V: The Finance Director is hereby authorized and directed to implement the provisions of this Ordinance to institute the "pick up" of the statutorily required contributions to the Public Employees Retirement System of Ohio for those persons reflected in Section II herein so as to enable them to obtain the result in federal and state tax deferments and other benefits.
Section VI: That this ordinance shall take effect and be in full force from and after the earliest period allowed by law.