HomeMy Public PortalAbout2012_06_12_R064 VRS Employee ContributionsThe Town of
Leesburg,
Virginia
RESOLUTION NO. 2012 -064
PRESENTED June 12, 2012
ADOPTED June 12, 2012
A RESOLUTION: APPROVING THE AMOUNT OF MEMBER CONTRIBUTIONS FOR
THE VIRGINIA RETIREMENT SYSTEM THAT TOWN EMPLOYEES
WILL PAY BEGINNING JULY 1, 2012 AND CERTIFYING THAT
EMPLOYEES WILL RECEIVE A COMPARABLE OFFSETTING
SALARY INCREASE EFFECTIVE JULY 1, 2012
WHEREAS, the Town of Leesburg 55329 employees who are Virginia Retirement System
members who commence or recommence employment on or after July 1, 2012 ( "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 § 414(h) on a pre-
tax basis upon commencing or recommencing employment; and
WHEREAS, the Town of Leesburg 55329 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 § 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' contributions equal give percent of creditable
compensation; and
WHEREAS, the Town of Leesburg 55329 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
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A RESOLUTION: APPROVING THE AMOUNT OF MEMBER CONTRIBUTIONS FOR
THE VIRGINIA RETIREMENT SYSTEM THAT TOWN EMPLOYEES
WILL PAY BEGINNING JULY 1, 2012 AND CERTIFYING THAT
EMPLOYEES WILL RECEIVE A COMPARABLE OFFSETTING
SALARY INCREASE EFFECTIVE JULY 1, 2012
in total creditable compensation to be equal to the difference between five percent of the
employee's total creditable compensation to be equal to the difference between five percent of the
employee's total creditable compensation and the percentage of the member contribution paid by
such employee on January 1, 2012.
BE IT THEREFORE, RESOLVED, that the Town of Leesburg 55329 does hereby certify to
the Virginia Retirement System Board of Trustees that it shall effect the implementation of the
member contribution requirements of Chapter 822 of the 2012 Acts of Assembly (SB497) according
to the following schedule of the fiscal year beginning July 1, 2012 (i.e., FY2013):
Type of
Employee
Employer Paid Member
Contribution
Employee Paid Member
Contribution
Plan 1
0%
5%
Plan 2
0%
5%
FY2013 Employees
0%
5%
(Note: Each row must add up to 5 percent.); and
BE IT FURTHER RESOLVED, that such contributions, although designated as member
contributions, are to be made by the Town of Leesburg in lieu of member contributions; and
BE IT FURTHER RESOLVED, that pickup member contributions shall be paid from the
same source of funds as used in paying the wages to affected employees; and
BE IT FURTHER RESOLVED, that member contributions made by the Town of Leesburg
under the pickup arrangement shall be treated for all purposes other than income taxation, including
but not limited to VRS benefits, in the same manner and to the same extent as member contributions
made prior to the pickup 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 pickup contributions made by the Town of
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A RESOLUTION: APPROVING THE AMOUNT OF MEMBER CONTRIBUTIONS FOR
THE VIRGINIA RETIREMENT SYSTEM THAT TOWN EMPLOYEES
WILL PAY BEGINNING JULY 1, 2012 AND CERTIFYING THAT
EMPLOYEES WILL RECEIVE A COMPARABLE OFFSETTING
SALARY INCREASE EFFECTIVE JULY 1, 2012
Leesburg 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 Town of Leesburg shall be reduced
by the amount of member contributions picked up by the Town of Leesburg on behalf of such
employee pursuant to the foregoing resolutions.
NOW, THEREFORE, the officers of the Town of Leesburg 55329 are hereby authorized
and directed in the name of the Town of Leesburg to carry out the provisions of this resolution, and
said officers of the Town of Leesburg 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 Town of Leesburg for this
purpose.
PASSED this 12th day of June, 2012.
I - . I (�-' C i
Ise I C Um
. s attd, Mayor
�
Town of Leesburg
ATT ST:
�AL —
Clerk of 02j,
PAResolutions\2012 \0612 VRS Salary Reduction.doc