§ 2-1187. Pickup of member contributions by employer.

(a)

Pursuant to the provisions of section 414(h)(2) of the United States Internal Revenue Code, the employer shall pick up and pay the contributions which would otherwise be payable by members as prescribed in section 2-1186, commencing with the pay period ending May 11, 1986. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal and state income taxes to withhold from the member's compensation.

(b)

Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member's compensation equal to the amount of the member's contributions picked up by the employer, provided that such deductions shall not reduce the member's compensation for purposes of computing benefits under sections 2-1176, 2-1183, 2-1184 and 2-1185, and amendments thereto.

(c)

Member contributions picked up by the employer shall be paid from the same source of funds and in the same manner as set forth in section 2-1186. Such contributions shall be credited to a separate account within the member's individual account so that amounts contributed by the member before the pay period ending May 11, 1986, may be distinguished from the member contributions picked up by the employer. Interest shall be added annually to members' individual accounts.

(d)

Member contributions picked up by the employer shall be deemed earnings subject to the city earnings tax.

(e)

The employee shall not have an option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the pension plan.

(Admin. Code 1967, § A9.10; Ord. No. 59205, 4-4-86)