Title
An Ordinance to Amend Sections 1:552(1) and Section 1:572(b) of Chapter 18, Employees Retirement System, Title I of the Code of the City of Ann Arbor to Implement a “Pick-Up” Provision Allowed by Internal Revenue Code 414(h) and Increase the Contribution Level for Members Represented by the Ann Arbor Police Officers Association for Police Service Specialists and to Renumber Section 1:552 (Ordinance No. ORD-11-14)
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 and increases the current contribution to the Pension System made by members of the Police Service Specialists from 5% to 6%. This change is a result of collective bargaining with this unit which resulted in a successor contract approved by Council on June 20, 2011.
This pick up feature will convert the current post-tax 5% pension contribution made by members of the Police Service Specialists to a 6% pre-tax contribution. The amendment becomes effective with the pay period beginning August 14, 2011.
In addition, renumbering of the definition section, separating the section into new smaller sections is being recommended. Section 7.3(g) of the City Charter requires that when a section of an ordinance is amended or revised it be reenacted and published at length. By separating a long definitional section into smaller sections future amendment will only have to restate/publish the smaller section that includes the amendment.
Staff
Prepared by: Nancy Niemela, Senior Assistant City Attorney
Reviewed by: Robyn Wilkerson, Director, Human Resources and Labor Relations
Approved by: Tom Crawford, Interim City Administrator
Body
ORDINANCE NO. ORD-11-14
First Reading : July 18, 2011 Approved: August 4, 2011
Public Hearing : August 4, 2011 Published: August 16, 2011
Effective: August 26, 2011
EMPLOYEES’ RETIREMENT SYSTE...
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