R-12-29 RESOLUTION NO. R-12-29
MEMBER CONTRIBUTIONS BY SALARY REDUCTION SUBDIVISIONS ION FOR
COUNTIES, CITIES,
TOWNS, AND OTHER POLITICAL
(In accordance with Chapter 822 of the 2012 Acts of the Assembly (SB497))
WHEREAS, that the City of Fairfax 55316 employees who are Virginia Retirement
System members who commenced or recommence employment on or after July 1,
("FY2013 Employees" for purposes of this resolution), shall be required to contribute five
percent of their creditable compensation by salary reduction pursuant to Internal Revenue
Code Section 414(h) on a pre-tax basis upon commencing or recommencing employment; and
WHEREAS, the City of Fairfax 55316 employees who are Virginia Retirement
System members and in service on June 30, 2012, shall be required to contribute five percent
of their creditable compensation by salary reduction pursuant to Internal Revenue Code
Section 414(h) on a pre-tax basis no later than July 1, 2016; and
WHEREAS, such employees in service on June 30, 2012, shall contribute a minimum
of an additional one percent of their creditable compensation beginning on each July 1 of
2012, 2013, 2014, 2015 and 2016, or until the employees' contribution equal five percent of
creditable compensation; and
WHEREAS,the City of Fairfax 55316 may elect to require such employees in service
on June 30, 2012, to contribute more than an additional one percent each year, in whole
percentages, until the employees' contributions equal five percent of creditable compensation:
and
WHEREAS, the second enactment clause of Chapter 822 of the 2012 Acts of
Assembly (SB497) requires an increase in total creditable compensation, effective July 1,
2012, to each such employee in service on June 30,
2012, to offset the cost of the member
contributions, such increase in total creditable creditable compensation and the percentage of
between five percent of the employee's 1, 2012.
the member contribution paid by such employee on January
BE IT THEREFORE RESOLVED, that the City of Fairfax 55316 does hereby
certify to the Virginia Retirement System Board of Trustees that it shall effect the Acts
implementation of the member contribution requirements hfor the fiscagyear beginni g July if
Assembly (SB497) according to the following schedule
0212 (i.e., FY2013):
Employer Paid Member Employee Paid Member
Type of employee Contribution
ontribution
Plan 1 0% 5%0% 5%
Plan 2 0% 5%
FY2013 Employees
BE IT FURTHER RESOLVED, that such contributions, although designated as
member contributions, are to be made by the City of Fairfax in lieu of member contributions;
and
BE IT FURTHER RESOLVED, that pick p member ae contributions
employees; be paid
from the same source of funds as used in paying the wages
BE IT FURTHER RESOLVED, that member ted made
income
taxation,Fairfax under the pick up arrangement shall be treated for all P
taxation, including but not limited to VRS Benefits, in the same manner and to the same
extent as member contributions made prior to the pick up arrangement; and
BE IT FURTHER RESOLVED, that nothing herein shall be construed so as to
permit or extend an option to VRS members to receive the pick up contributions made by the
City of Fairfax directly instead of having them paid to VRS; and
BE IT FURTHER RESOLVED, that notwithstanding any contractual or other
provisions, the wages of each member of VRS who is an employee of the city of Fairfax shall
be reduced by the amount of member contributions picked up by the City of Fairfax on behalf
of such employee pursuant to the foregoing resolutions.
NOW, THEREFORE, the officers of the City of Fairfax 55316 are herby authorized
and directed in the name of the City of Fairfax to carry out the provisions of this resolution,
and said officers of the City of Fairfax are authorized and directed to pay over to the Treasurer
of Virginia from time to time such sums as are due to be paid by the City of Fairfax for this
purpose.
ADOPTED this 12th day of June, 2012.
Mayor
6‘Z7/72__
te
ATTEST:
•
City Clerk
The vote on the motion to approve was recorded as follows:
VOTE:
Councilman Drummond Aye
Councilman Greenfield Aye
Councilman Meyer Aye
Councilmember Schmidt Aye
Councilman Silverthorne Aye
Councilman Stombres Aye
CERTIFICATE
I, , Clerk of the City of Fairfax, verify that the foregoing
is a true and correct copy of a resolution passed at a lawfully organized meeting of the City of
Fairfax held at Fairfax City Hall,Virginia at 7:00 p.m. on June 12, 2012; Given under my
hand and seal of the City of Fairfax this day of
City Clerk