HomeMy WebLinkAboutResolution #3234
RESOLUTION N0. _
A RESOLUTION COMMITTING CERTAIN CITY EMPLOYEES TO INVOLUNTARY
EMPLOYER PAID CONTRIBUTIONS TO THE POLICE PENSION FOND
WHEREAS, Section 3-125.2 of the Illinois Pension Code (40
ILCS 5/3-125.2) permits a municipality as employer to pick up
police officers' contributions to the Police Pension Fund; and,
WHEREAS, Section 414(h) of the Internal Revenue Code
provides that employer paid (picked-up) employee contributions are
excluded in taxable gross income until distributed as a refund,
annuity or death benefit; however, neither the Internal Revenue
Service nor the Federal Courts have ruled that these contributions
shall not be included as gross income until distributed or made
available.
WHEREAS, the Committee on Negotiations, Grievance and
Personnel has determined that it is in the best interest of
affected City personnel that police officers' contributions to the
Illinois Pension Fund be picked up by the employer; and,
WHEREAS, the City Council of the City of Canton, Fulton
County, Illinois has made a similar determination.
NOW, THEREFORE, BY THE CITY COUNCIL OF THE CITY OF CANTON,
Fulton County, Illinois as follows:
1. That police officers' contributions to the Police
Pension Fund shall be picked up by the City of Canton, employer,
on behalf of all of said City's employees enrolled in the pension
fund .
2. That all such payments shall be made by reducing the
amount of the employee's gross earnings payable to each such
employee by the amount of the contributions and by then making
payment of such amount directly to the Fund.
3. That the City of Canton shall continue to withhold
Federal and State income tares based upon these contributions
until the Internal Revenue Service or Federal courts rule that
such contributions shall not be included as gross income of the
police officers until distributed or made available.
/~. That payment of employee contributions provided shall be
effective for all compensation paid to affected employees
beginning with the month of May, 1994•
5. That this Resolution shall be in full force and effect
immediately upon its passage by the City Council of the City of
Canton, Fulton County, Illinois, and approval by the Mayor
thereof .
PASSED by the City Council of the City of Canton, Fulton
County, Illinois this 7th day of June, 1994, upon a roll call
vote as follows:
AYES : Alder~z Coay, Molleck, Phillips , Sarff, May, Chapman •
NAYS: None•
ABSENT: ~-~ Mea.de, Bohler.
APP ED:
,~ ~--
onald E. Edwards, Mayor
ATTEST:
e'
N ncy it , City Clerk.