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Enclosure #2 <br /> <br />CITY OF MARTINSVILLE <br /> <br />55 West Church Street <br />P.O. Drawer 1112 <br />Martinsville, VA <br />24114-1112 <br /> <br />City Manager <br />656-5180 <br />656-5280 FAX <br /> <br />Community Development <br />656-5173 <br />656-5280 FAX <br /> <br />Electric <br />656-5183 <br />656-5280 FAX <br /> <br />Finance <br />656-5142 Director <br />656-5143 Accounting <br />656-5146 Billing <br />656-5188 FAX <br /> <br />Fire <br />656-5325 <br />656-51 ! 8 FAX <br /> <br />Housing Services <br />656-5190 <br />656-5118 FAX <br /> <br /> Personnel <br /> 656-5 i 8 i <br /> 656-5280 FAX <br /> <br /> Police <br /> 656-5300 <br /> 656-5306 FAX <br /> <br /> Public Works <br /> 656-5154 <br /> 656-5280 FAX <br /> <br /> Purchasing <br /> 656-5354 <br /> 656-5356 FAX <br /> <br /> Recreation <br /> 656-5140 <br /> 656-5280 FAX <br /> <br /> Water Resources <br /> 656-5157 <br /> 656-5280 FAX <br /> <br /> Other Inquiries <br /> 656-5000 <br /> <br /> AREA CODE 703 <br /> <br />January4,2000 <br /> <br />TO: <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br />Earl B. Reynolds, Jr. - City Manager <br /> <br />Wade Bartlett- Finance Director ~4 <br />Iris Read - Human Resources Manager <br /> <br />Purchase of Prior Service Credit on a Tax-Deferred Basis <br /> <br />Pursuant to 414(h) of the Intemal ReVenue Code, legislation was enacted <br />by the 1998 Session of the General Assembly which allows eligible <br />Virginia Retirement System (VRS) members to purchase prior service <br />credit on a tax-deferred basis through payroll deduction. Member <br />contributions paid by the employer under a salary reduction arrangement <br />are treated as employer contributions and are credited to the member' s <br />contribution account on a tax-deferred basis. In order to make this benefit <br />available to employees, the employer's governing body must adopt a <br />resolution that authorizes the City to deduct the contribution and submit the <br />payment to the VRS. Once authorized, the benefit is irrevocable. <br /> <br />We recommend that the City adopt the attached Resolution entitled <br />"Authorization to Pick Up the Employee's Contribution to VRS for Past <br />Service Credit", to become effective February 1, 2000. According to the <br />VRS, approximately 250 towns~ cities or state agencies have adopted this <br />resolution to date. <br /> <br />If you approve, we recommend that the Resolution be presented to Council <br />at their meeting on January 11th. <br /> <br />Attachment <br /> <br /> <br />