Title
AN ORDINANCE AMENDING ORDINANCE NUMBER 2005-053 AUTHORIZING THE CITY OF GROVEPORT'S PICK UP OF THE STATUTORILY REQUIRED CONTRIBUTION TO THE OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM FOR THE EMPLOYEES OF THE CITY OF GROVEPORT PURSUANT TO IRC SECTION 414(h)(2).
Body
WHEREAS, pursuant to federal and Ohio laws, the City of Groveport may offset future salary increases and "pick up" (assume and pay) the contributions statutorily required by such elected officials and covered employees to the Ohio Public Employees Retirement System (OPERS) and such individuals will not be required to pay federal and state income taxes on such contributions.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GROVEPORT, FRANKLIN COUNTY, OHIO, A MAJORITY OF ITS MEMBERS CONCURRING:
Section 1: That effective July 13, 2026, three percent (3%) of the statutorily required employee contributions to OPERS shall be picked up and paid as a fringe benefit by the City of Groveport for each person within any of the classes established in Section 2 herein. The pick up shall be an offset against future salary increases. This “pick up” by the City of Groveport shall be designated as public employee contributions and shall be in lieu of contributions to OPERS by each person within any of the classes established in Section 2 herein. No person subject to this “pick up” shall have the option of choosing to receive the statutorily required contribution to OPERS directly instead of having it “picked up” by the City of Groveport or of being excluded from the “pick up”. The City of Groveport shall, in reporting and making remittance to OPERS, report that the public employees' contributions for each person subject to this “pick up” has been made as provided by the statute. Therefore, contributions, although designated as employee contributions, are employer-paid, and employees do not have the option to receive the contributions directly. All contributions are paid by the employer directly to the plan.
Section 2: That the “pick up” by the City of Groveport provided in this ordinance shall apply to all persons that are employees of the City of Groveport who are or become contributing members of OPERS.
Section 3: That under the fringe-benefit method of employer pick up the employees' salaries are not modified; however, the employer will pay the employees’ statutorily required contributions to OPERS. The remaining contributions will be handled in a pre-tax manner.
Section 4: That the Finance Director is hereby authorized and directed to implement the provisions of this Ordinance to institute the “pick up” of the statutorily required contributions to OPERS for those persons reflected in Section 2 herein so as to enable them to have their employee contributions paid by their employer.
Section 5: That this ordinance shall take effect and be in full force at the earliest time provided by law.
_____________________________
Lance Westcamp, Mayor
_____________________________
Mindy Kay, Clerk of Council
Approved as to form:
_____________________________
Kevin C. Shannon, Law Director
Recommended Action
Sponsor: Council Member Lockett
This Ordinance was referred to the Committee of the Whole