Ann Arbor logo
Share to Facebook Share to Twitter Bookmark and Share
File #: 09-1200    Version: 1 Name: 12/7/09 - Pick-Up Provision Amendments to Chapter 18
Type: Ordinance Status: Passed
File created: 12/7/2009 In control: City Council
On agenda: 12/21/2009 Final action: 12/21/2009
Enactment date: 12/21/2009 Enactment #: ORD-09-34
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)
Code sections: Chapter 18 - Employees Retirement System
Attachments: 1. ORD-09-34 Briefed & Approved, 2. Pickup Amendment Ord.DOC, 3. 09-34 Pension Ordinance Approval Notice
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...

Click here for full text