Title
TO AUTHORIZE THE CITY OF GAHANNA TO IMPLEMENT A PLAN TO PURCHASE ADDITIONAL SERVICE CREDIT TAX-DEFERRED BY PAYROLL DEDUCTION FOR THOSE EMPLOYEES IN THE OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM.
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WHEREAS, Internal Revenue Code Section 414 (h) (2) permits employer pick up of the employee contributions to a retirement plan, thereby resulting in tax deferral of such contributions; and
WHEREAS, under Ohio Revised Code Section 145 members of the Public Employees Retirement System of Ohio may be allowed to redeposit contributions previously withdrawn plus interest and/or purchase additional forms of permissive service credit;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GAHANNA, STATE OF OHIO:
Section 1. Employees of the City of Gahanna may purchase additional service credit, tax-deferred, and the City shall withhold the required service credit deduction from the gross pay of each person who elects to do so and shall pick up such deduction to the Public Employees Retirement System of Ohio.
Section 2. A person electing this pick up deduction shall not have the option of choosing to receive the payroll deduction directly instead of having this deduction picked up by the City of Gahanna; and
Section 3. Members who have elected to participate in this plan cannot increase, decrease, or terminate the amount of the pick up deduction;
Section 4. That the pick up deduction by the City of Gahanna as provided shall apply to all persons making the election as eligible employees of the City of Gahanna who are contributing members of the Public Employees Retirement System of Ohio.
Section 5. That the Director of Finance for the City of Gahanna is hereby authorized and directed to implement the provisions of this ordinance to effect the pick up of the payroll deduction for the purchase or additional service credit to the Public Employees Retirement System of Ohio for those eligible employees.
Section 6. That this ordinance shall be in full force and effect after passage by this Council and 30 days after date of signature approval by the Mayor.