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1996-28 G.E. Pension Member Contributions ORDINANCE N0.28-96 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AMENDING SECTION 2-158 (d) RELATING TO MEMBER CONTRIBUTIONS OF DIVISION 3, PENSION AND CERTAIN OTHER BENEFITS FOR GENERAL EMPLOYEES, OF ARTICLE V, PENSIONS AND RETIREMENT SYSTEMS, OF CHAPTER 2 OF THE CODE OF ORDINANCES OF THE VILLAGE; PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND, PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, • FLORIDA: Section 1. Section 2-158 (d), Member Contributions, of Division 3, Pension and Certain Other Benefits for General Employees, of Article V, Pension and Retirement Systems, of Chapter 2 of the Code of Ordinances of the Village is hereby amended to read as follows: "Member contributions. • (1) Amount. Members of the plan shall make regular contributions to the fund at a rate equal to two (2) percent of their respective earnings. (2) Duration. The Village shall pick-up, rather than deduct from each member's pay, beginning with the date of employment, two (2%) percent of the member's basic compensation. The monies so picked-up shall be deposited in the Fund on a monthly basis. An account record shall be maintained continuously for each member. Pick-up contributions shall continue until death, disability or termination of service, wF~ichever shall occur first. Contributions shall remain in the Fund unless withdrawn as provided in the Plan. No member shall have the option to choose to receive the contributed amounts directly instead of having them paid by the Village directly to the Plan. All such pick-up contributions by the Village shall be deemed and be considered as part of the member's accumulated contributions and subject to all provisions of the Plan pertaining to accumulated contributions of members. The intent of this provision is to comply with Section 414(h) (2) of the Internal Revenue Code. For paying Social Security taxes, and for such other purposes except as spec[fied In this Plan, the amount of employee contributions "picked-up" or paid by the Village will be added to the amount distributed on a current basis in order to determine • total wages, salary, pay or compensation. In the event that the employer agrees to assume and pay member contributions in lieu of direct contributions by the member, such contributions shall accordingly be paid into the plan on behalf of the members. No member subject to such agreement shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer directly to the plan. All such contributions by the employer shall be deemed and considered as part of the member's accumulated contributions and subject to all provisions of this plan pertaining to accumulated contributions of members. 1'he intent of this language is to comply with section 414(h) (2) of the Internal Revenue Code. (3) Interest. Interest shall be credited to member contributions as of September 30 of each year at a rate equal to the change in the consumer price index, published by the U.S. Bureau of Labor Statisttcs, over the twelve-month period ending on the previous June 30. The maximum rate for any year shall be seven (7) percent and the minimum rate shall be zero (0) percent. (9) Guaranteed refund. All contributions made by employees whose employment is terminated prior to • vesting shall receive a refund of all amounts contributed by the employee together with Interest at a rate equal to the Consumer Price Index, published by the U.S. Bureau of Labor Statistics in effect during the year or years of employee contributions or seven (7) percent per annum, whichever is less." Section 2. If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for any reason held by a Court to be unconstitutional, Inoperative or void, such holding shall not affect the remainder of this Ordinance. Section 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 4. This Ordinance shall take effect immediately upon passage. PLACED ON FIRST READING THIS _ 11th DAY OF JuIY .1996. • I'LACEU ON SECOND, FINAL READING AND PASSED ON THIS 25th DAY OF July, 1996. • total wages, salary, pay or compensation. In the event that the employer agrees to assume and pay member contributions in lieu of direct contributions by the member, such contributions shall accordingly be paid into the plan on behalf of the members. No member subject to such agreement shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer directly to the plan. All such contributions by the employer shall be deemed and considered as part of the member's accumulated contributions and subject to all provisions of this plan pertaining to accumulated contributions of members. 1'he intent of this language is to comply with section 414(h) (2) of the Internal Revenue Code. (3) Interest. Interest shall be credited to member contributions as of September 30 of each year at a rate equal to the change in the consumer price index, published by the U.S. Bureau of Labor Statisttcs, over the twelve-month period ending on the previous June 30. The maximum rate for any year shall be seven (7) percent and the minimum rate shall be zero (0) percent. (9) Guaranteed refund. All contributions made by employees whose employment is terminated prior to • vesting shall receive a refund of all amounts contributed by the employee together with Interest at a rate equal to the Consumer Price Index, published by the U.S. Bureau of Labor Statistics in effect during the year or years of employee contributions or seven (7) percent per annum, whichever is less." Section 2. If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for any reason held by a Court to be unconstitutional, Inoperative or void, such holding shall not affect the remainder of this Ordinance. Section 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 4. This Ordinance shall take effect immediately upon passage. PLACED ON FIRST READING THIS _ 11th DAY OF JuIY .1996. • I'LACEU ON SECOND, FINAL READING AND PASSED ON THIS 25th DAY OF July, 1996. • • MAYOR (VILLAGE SEAL) ATTEST: VILLAGE CLERK ~~~ •