Number
091069
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
A substitute resolution establishing pre-tax payroll deduction for employee paid pension contributions.
Analysis
The Common Council has approved labor contracts with various city unions which require new employees represented by those unions and beginning city employment on or after January 1, 2010, to contribute 5.5% of their earnable compensation as a contribution to the city retirement system; this requirement has also been imposed on nonrepresented/nonmanagement employees and management employees beginning city employment on or after January 1, 2010. In conjunction with this requirement, this resolution provides for the implementation of section 414(h)(2) of the Internal Revenue Code to make city employee-paid member retirement contributions a pre-tax payroll contribution under that section.
Body
Whereas, The Common Council has approved and will approve labor contracts that include or will include provisions requiring city employees to pay member contributions required to be paid by Chapter 36 of the Charter out of their salaries; and
Whereas, The Common Council has approved and will approve extending the provisions of those labor contracts to non-represented employees by amending Chapter 36 of the Charter; and
Whereas, The Common Council elects to make the employee-paid member contributions a pre-tax payroll deduction under Internal Revenue Code (IRC) sec. 414 (h) (2); now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the City of Milwaukee, commencing January 1, 2010, will implement the provisions of IRC sec. 414 (h) (2), by making employee contributions for Chapter 36 service credit on behalf of its employees who are bound by labor contract, or who are required under the provisions of Chapter 36, to pay the employee contribution in the form of a salary deduction; and, be it
Further Resolved, That, for the bound employees, the City of Mi...
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