HomeMy WebLinkAbout~Master - "Employer Pick-up" of employee's contribution to the Utility Retirement System ORDINANCE NO. 3380
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF
AMES, IOWA, BY REPEALING SUBSECTION 28.402(5), SECTION 28.404
AND SECTION 28.405 AND REENACTING THOSE PORTIONS OF THE CODE
REVISED FOR THE PURPOSE OF PROVIDING FOR"EMPLOYER PICK-UP"
OF THE EMPLOYEE'S CONTRIBUTION TO THE UTILITY RETIREMENT
SYSTEM; REPEALING ANY AND ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH CONFLICT;AND
ESTABLISHING AN EFFECTIVE DATE.
BE IT ENACTED,by the City Council for the City of Ames,Iowa,that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by
repealing Subsection 28.402(5),Section 28.404,and Section 28.405,and re-enacting the same revised to state as follows:
"Sec.28.402. DEFINITIONS.
(5) Earnings. salary or wages paid by the City of Ames to an employee for personal service.
Effective July 1, 1996,earnings includes any employee contributions to the system paid by the utility
under Section 28.405.
Sec.28.404. EMPLOYEE CONTRIBUTIONS.
Each and every employee shall contribute such same percentage amount from each payment
of earnings during the period of current service(until the employee attains age seventy(70)or earlier
retires, and excluding periods of military duty and disability) as shall cause the annual accumulated
employee contributions to equal forty-three percent of the estimated annual cost of the system.
Employee contributions shall be deducted from earnings paid to each employee and shall be credited
immediately to the retirement fund. The contributions of each employee shall be accumulated in a
separate account and the interest credited thereon annually.
Effective July 1, 1996,the utility shall pay such employee contributions through the use of
salary reductions,offsets against future salary increases,or a combination of both. See Section 28.405.
Sec.28.405. UTILITY CONTRIBUTIONS.
The utility shall contribute fifty-seven percent of the annually estimated cost of the system.
Any shortfall in the amounts contributed pursuant to this section and Section 28.404,and the actual
annual cost shall be carried forward as an item of cost to be considered in estimating the next year's cost
of the system.
Effective July 1, 1996, the utility shall also pay the employee contribution to the system,
through the use of salary reductions,offsets against future salary increases,or a combination of both.
The employee will not have the option of receiving these contributions directly. These employee
contributions paid by the utility on behalf of the employee shall be accumulated in a separate account
and the interest credited thereon annually."
Section Two. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such
conflict, if any.
Section Three. This ordinance shall be in full force and effect from the 1 st day of July, 1996.
Passed this 23 day of April , 1996.
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Sandra L. Ryan,City CIA Larry R.Cufis,Mayor
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