Common use of Pension Pick-up Clause in Contracts

Pension Pick-up. 9.1.1 The County agrees to continue Employer Paid Member Contributions (EPMC) for a portion of the Tier 1 and Tier 2 employees’ contribution to the Pension Trust whereby the County will pay nine and twenty-nine hundredths percent (9.29%) of the pensionable wages to the County’s Retirement System on behalf of each such employee. As set forth in the Retirement Plan, the EPMC amount is pensionable income. 9.1.1.1 For “new members,” as defined by the Public Employees’ Pension Reform Act (PEPRA), on or after the pay period that includes July 1, 2013, the County shall discontinue the nine and twenty-nine hundred percent (9.29%) EPMC of the employees’ contribution to the County Employees Retirement Plan. “New members” on or after the pay period that includes July 1, 2013 shall be responsible for the full employee share of pension contributions. 9.1.2 These amounts paid by the County, referred to in Section 9.1.1, are for a portion of the unit member’s contributions provided in lieu of salary and are paid by the County to partially satisfy the employee’s obligation to contribute to the County Pension Trust. 9.1.3 Unit members shall not have the option to receive the contributed amounts directly as salary instead of having them paid by the County to the Pension Trust as payment of a portion of the required employee retirement contribution on behalf of the unit members. 9.1.4 The parties agree that the County’s EPMC of employees’ Pension Trust contributions is based on San ▇▇▇▇ Obispo County Employees Retirement Plan section 5.05.1 and the tax treatment permitted by California and Federal law including particularly Internal Revenue Code section 414(h)(2) as well as state statutes and regulations and federal statutes, regulations, and revenue rulings. It is understood that these laws may be altered by the law-making bodies and agencies and such a contingency is beyond the control of the parties. In that regard, the County shall declare that it is “picking up” these employer-paid member contributions pursuant to Internal Revenue Code section 414(h)(2) so that they will not be reported as taxable income.