Common use of Pension Pick-up Clause in Contracts

Pension Pick-up. Pursuant to this Section, a portion of the contribution made by the employee to the Police and Fireman’s Disability and Pension Fund (“the Fund”), such portion being equal to six percent (6%) of the employee’s earned compensation, shall be picked up (assumed and paid) on behalf of the employee by the City, and in lieu of payment by the employee. The remaining portion of the employee contribution shall continue to be paid by the employee. (A) The City, in reporting and making remittances to the Fund, shall report that each employee’s contribution has been made as provided for by statute. This payment by the City on behalf of the employee is not to be considered additional salary or wages and shall not be treated as increased compensation. For purposes of computing the employee’s earnings, or the basis of his contribution to the Fund, the amount paid by the City on behalf of the employee as a portion of the employee’s statutory obligation, shall be considered as having been paid by the employee in fulfillment of the employee’s statutory obligation. (B) The City may, in its sole discretion, reduce the percentage of pension pick-up set forth in this Section by reducing any percentage of the pension pick up and simultaneously increasing each employee’s regular hourly rate of pay by the same percentage that the pension pick-up is reduced.