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035 of 2020 - Authorizing Pick Up of Public Safety and Firefighter Employee Retirement ContributionsRESOLUTION NO. 35 OF 2020 Authorizing Pick Up of Public Safety and Firefighter Employee Retirement Contributions WHEREAS, Salt Lake City Corporation (the “City”) employs employees who are eligible for and participate as members in the Public Safety and Firefighter Tier II Contributory Retirement System administered by the Utah Retirement Systems; WHEREAS, in accordance with federal and state law, including Section 414(h)(2) of 28 the Internal Revenue Code, employers may take formal action to pick up required employee contributions, which will be paid by the employer in lieu of employee contributions; WHEREAS, Utah Code subsection 49-23-401(1)(b) requires a participating employer that picks up the required member contribution described in Utah Code subsection 49-23-301(2)(c) to also make an equivalent additional nonelective contribution to qualifying employees who are covered under the defined benefit contribution plan; WHEREAS, the City desires to formally pick up a portion of the employee contributions required to be paid under Utah Code subsection 49-23-301(2)(c), for all qualifying City employees participating in the Public Safety and Firefighter Tier II Contributory 34 Retirement System; and WHEREAS, the Mayor and City Council are duly authorized to take such action on behalf of the City as a participating employer with the Utah Retirement Systems: NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as follows: 1.Beginning November 28, 2020, the City shall prospectively pick up and pay required employee contributions for all City employees who are qualifying members of the Public Safety and Firefighter Tier II Contributory Retirement System, subject to a maximum of 2.27% of compensation for each employee; 2.The picked up contributions paid by the employer, even though designated as employee contributions for state law purposes, are being paid by the City in lieu of the required employee contributions; 3. The picked up contributions will not be included in the gross income of the employees for tax reporting purposes, that is, for federal or state income tax withholding taxes, until distributed from the Utah Retirements Systems, so that the contributions are treated as employer contributions pursuant to Section 414(h)(2) of the Internal 49 Revenue Code. 4. The picked up contributions are a supplement and not a salary reduction to the City employees who are eligible for and participating members in the Public Safety and Firefighter Tier II Contributory Retirement System. R 20-1 R 20-15 5. From and after the date of this pick up, a City employee may not have a cash or deferred election right with respect to the designated employee contributions, including that the employees may not be permitted to opt out of the pick up and may not be entitled to any option of choosing to receive the contributed amounts directly instead of having them paid by the City on behalf of its employees to the Utah Retirement Systems. 6. Beginning November 28, 2020, the City shall also make an additional nonelective contribution equivalent to the picked up employee contribution described in paragraph 1, likewise subject to same maximum of 2.27% of an employee’s compensation, for each qualifying employee who participates in the City’s defined contribution plan. This additional nonelective contribution shall be subject to all laws and rules governing nonelective contributions to the City’s defined contribution plan. 7. This Resolution shall be effective immediately upon passage. Passed by the City Council of Salt Lake City, Utah this 20th day of October, 2020. SALT LAKE CITY COUNCIL _______________________________ Chris Wharton, Chair ATTEST AND COUNTERSIGN: ______________________________ Cindy Lou Trishman, City Recorder Approved as to form: Salt Lake City Attorney’s Office Date:___________________________ _______________________________ Jaysen Oldroyd, Senior City Attorney Jaysen Oldroyd (Oct 30, 2020 16:40 MDT) 10/30/2020 Chris Wharton (Nov 9, 2020 18:47 MST) Chris Wharton Cindy Trishman (Nov 9, 2020 21:11 MST) Resolution 35 of 2020 adopted 10-20-20 Final Audit Report 2020-11-10 Created:2020-10-30 By:Scott Crandall (scott.crandall@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAAGlmnNszLUZq2JI45-8cDCc1AzbOv9iEe "Resolution 35 of 2020 adopted 10-20-20" History Document created by Scott Crandall (scott.crandall@slcgov.com) 2020-10-30 - 10:34:07 PM GMT- IP address: 204.124.13.151 Document emailed to Jaysen Oldroyd (jaysen.oldroyd@slcgov.com) for signature 2020-10-30 - 10:37:28 PM GMT Email viewed by Jaysen Oldroyd (jaysen.oldroyd@slcgov.com) 2020-10-30 - 10:40:17 PM GMT- IP address: 73.131.251.31 Document e-signed by Jaysen Oldroyd (jaysen.oldroyd@slcgov.com) Signature Date: 2020-10-30 - 10:40:41 PM GMT - Time Source: server- IP address: 73.131.251.31 Document emailed to Chris Wharton (chris.wharton@slcgov.com) for signature 2020-10-30 - 10:40:42 PM GMT Email viewed by Chris Wharton (chris.wharton@slcgov.com) 2020-11-10 - 1:47:07 AM GMT- IP address: 73.63.28.254 Document e-signed by Chris Wharton (chris.wharton@slcgov.com) Signature Date: 2020-11-10 - 1:47:15 AM GMT - Time Source: server- IP address: 73.63.28.254 Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature 2020-11-10 - 1:47:16 AM GMT Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com) Signature Date: 2020-11-10 - 4:11:37 AM GMT - Time Source: server- IP address: 204.124.13.222 Agreement completed. 2020-11-10 - 4:11:37 AM GMT