Minutes 01/11/2000 - Laserfiche WebLink

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January 11,2000 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 51.1-142.1 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 this 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 service 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 executed by the member shall include the following: (1)-the beginning and ending date of the election, (2) the amount 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 service credit through a lump sum payment during the period in which the salary reduction election is in effect; and BE IT FURTHER RESOLVED that the member may revoke the salary reduction election only in the event of 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 BE IT FURTHER RESOLVED that such contributions, although designated as member contributions, are to be made by the City of Martinsville in lieu of member contributions; and BE IT FURTHER RESOLVED that pick up member contributions shall be paid from the same source of funds as used in paying the wages of affected employees; and BE IT FURTHER RESOLVED that member contributions made by the City of Martinsville under the pick up arrangement shall be treated for all purposes other than income taxation, including but not limited to VRS benefits, in the same manner and to the same extent as member contributions made prior to the pick up arrangement; and BE IT FURTHER RESOLVED that nothing herein shall be construed so as to permit or extend an option to VRS members to