Title
An Ordinance to Amend Sections 1:552(14) and 1:572(b) of Chapter 18, Title I of the Code of the City of Ann Arbor to Implement a “Pick-Up” Provision Allowed by Internal Revenue Code 414(h) for Non -Union Employees of the City of Ann Arbor (Ordinance No. ORD-09-34)
Memorandum
Human Resources Services recommends approval of amendment of the pension ordinance. The amendments to the pension ordinance implement a pick up feature as permitted by the Internal Revenue Code.
This pick up feature will convert the current post-tax 5% pension contribution made by non-union employees to a 5% pre-tax contribution. There will be no impact to the pension fund, but it will result in a greater net pay for non-union employees. The amendment becomes effective with the first pay period of 2010. It applies only to non-union employees of the City.
Staff
Prepared by: Nancy L. Niemela, Sr. Ass’t City Attorney
Reviewed by: Robyn Wilkerson, Director, Human Resources and Labor Relations
Approved by: Roger W. Fraser, City Administrator
Body
ORDINANCE NO. ORD-09-34
First Reading : December 7, 2009 Approved: December 21, 2009
Public Hearing : December 21, 2009 Published: December 24, 2009
Effective: January 3, 2010
EMPLOYEES RETIREMENT SYSTEM
An Ordinance to Amend Sections 1:552(14) and 1:572(b) of Chapter 18, Title I of the Code of the City of Ann Arbor to Implement a “Pick-Up” Provision Allowed by Internal Revenue Code 414(h) for Non -Union Employees of the City of Ann Arbor
The City of Ann Arbor Ordains:
Section 1. That Section 1:552 of Chapter 18 of Title 1 of the Code of the City of Ann Arbor be amended to read as follows:
1:552(14). Accumulated Contribution.
(14) Accumulated contribution. The sum of all amounts deducted from the compensation of a member and credited to the member’s individual account to the annuity savings fund, together with applicable regular interest thereon. Prior to January 1, 2010, such contributions were deducted fr...
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