RESOLUTION #12-2007

RESOLUTION AUTHORIZING RICHFIELD TOWNSHIP TO PICK UP THE STATUTORILY REQUIRED CONTRIBUTION TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM OF OHIO FOR THE EMPLOYEES OF THE TOWNSHIP PURSUANT TO I.R.C. SECTION 414(H)(2)

WHEREAS, pursuant to federal and Ohio laws, the employees of Richfield Township could defer the federal and state income taxes on a portion of their wages or salaries if Richfield Township would “pick up” (assume and pay) the statutorily required contribution by such elected officials and covered employees to the Public Employees Retirement System of Ohio; and

WHEREAS, Richfield Township will not incur any additional costs in the deferment of federal and state income taxes.

THEREFORE BE IT RESOLVED, THAT:

SECTION 1: Effective July 1, 2007 the full amount of the statutorily required contributions to the Public Employees Retirement System of Ohio shall be withheld from the gross pay of each person within any of the classes established in Section 2 herein and
shall be “picked up” (assumed and paid to the Public Employees Retirement System of
Ohio) by Richfield Township. This “pick up” by Richfield Township is, and shall be designated as, public employee contributions and shall be in lieu of contributions to the Public Employees Retirement System of Ohio by each person within any of the classes established in Section 2 herein. No person subject to this “pick up” shall have the option of choosing to receive the statutorily required contribution to the Public Employees Retirement System of Ohio directly instead of having it “picked up” by Richfield Township or of being excluded from the “pick up”. Richfield Township shall, in reporting and making remittance to the Public Employees Retirement System of Ohio report that the public employees contribution for each person subject to this “pick up” has been made as provided by the statute.

SECTION 2: The “pick up” by Richfield Township provided by this Resolution shall
apply to all persons that: Are employees of Richfield Township who are or become
contributing members of the Public Employees Retirement System of Ohio.

SECTION 3: The Township’s method of payment of salary to employees who are participants in PERS is hereby modified as follows, in order to provide for a salary reduction pick-up of employee contributions to PERS.

SECTION 4: The total salary for each employee shall be the salary otherwise payable
under the Township’s policies. Such total salary of each employee shall be payable by the
Township in two parts: (a) deferred salary and (b) cash salary. An employee’s deferred
salary shall be equal to that percentage of that employee’s total salary which is required
from time to time by PERS to be paid as an employee contribution by that employee,
and shall be paid by the Township to PERS on behalf of that employee as a pick-up and in lieu of the PERS employee contribution otherwise payable by that employee. An employee’s cash salary shall be equal to that employee’s total salary less the amount of
the pick-up for that employee, and shall be payable, subject to applicable payroll deductions, to that employee. The Township shall compute and remit its employer contributions to PERS based upon an employee’s total salary. The total combined expenditures of the Township for such employees’ total salaries payable under applicable
Township policies and the pick-up provisions of this Resolution shall not be greater than
the amounts it would have paid for those items had this provision not been in effect.

SECTION 5: The Fiscal Officer is hereby authorized and directed to implement the provisions of this Resolution to institute the “pick up” of the statutorily required contributions to the Public Employees Retirement System of Ohio for those persons reflected in Section 2 herein so as to enable them to obtain the result in federal and state tax deferments and other benefits.

Adopted in regular session this 21st day of June, 2007


______________________________________
David R. Wyatt, Chairman, Board of Trustees


______________________________________
Laurie Peters Gilmore, Trustee


______________________________________
Shano Cica-Mraz, Trustee

Attest:


Laurie Pinney, Fiscal Officer



Page last updated on: 01/09/2008
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