Agenda 01/11/2000 - Laserfiche WebLink

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COUNCIL MEMBERS: MARK A. CRABTREE, Mayor M. GENE TEAGUE, Vice-Mayor BRUCE H. T. DALLAS ELIZABETH H. HASKELL TERRY L. ROOP CITY OF MARTINSVILLE DAVID B. WORTHY City Attorney JOHNATHAN B. PHILLIPS Clerk of Council EARL B. REYNOLDS, JR. City Manager RESOLUTION AUTHORIZATION TO PICK UP THE EMPLOYEE'S CONTRIBUTION TO VRS FOR PAST SERVICE CREDIT UNDER SECTION 414(h) OF THE INTERNAL REVENUE CODE WHEREAS, the City of Martinsville, Virginia, desires to provide its employees with tax deferral pursuant to Section 414(h) of the Internal Revenue Code with respect to their member contributions tO the Virginia Retirement System, the State Police Officers Retirement System and the Judicial Retirement System (collectively referred to as VRS) for the permissible purchase of past service credit by picking up member contributions to the VRS; and WHEREAS, the pick up is authorized under Virginia Code Sections 51.1-142.I and 51.1- 143.C; and WHEREAS, the VRS keeps track of such picked up member contributions, and is prepared to treat such contributions as employee contributions for all purposes of VRS; now, therefore, BE IT RESOLVED that effective the first pay day on or after the later of January 11, 2000 or the date the member executes a binding and irrevocable salary reduction election relating to the past sendee permitted to be purchased, the City of Martinsville shall pick- up all or a portion of the member contributions of its employees to VRS based on the terms of the salary reduction election, and such contributions shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of the United States; and BE IT FURTHER RESOLVED that the binding salary reduction election to be exe- cuted by the member shall include the following: (1) the beginning and ending date of the election, (2) the mount of the salary reduction on a pay period by pay period basis, (3) the total amount of contribution expected to be involved, (4) a statement that the member may not receive the contributed amounts instead of having them. paid by the City of Martinsville to the VRS, and (5) an agreement that the member will not purchase the sendee credit through a lump sum payment during the period in which the salary reduc- tion election is in effect; and BE IT FURTHER RESOLVED that the member may revoke the salary reduction elec- tion only in the eventof an unforeseeable emergency as that phrase is used and defined in IRC Section 457 and Treasury Regulation Section 1.457-2(h)(4) and if such a revocation is made, the member may not make a new salary reduction election during his period of employment; and 55 WEST CHURCH STREET P. O. BOX 1112 MARTINSVILLE, VIRGINIA 24114 PHONE: (540) 656-5180 FAX: (540) 656-5280