HomeMy WebLinkAboutProposed Resolution - 6/2/2025R 20-1
R 20-15
RESOLUTION NO. _____ OF 2025
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 subsection 26 USC
414(h)(2) of 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 July 1, 2025, 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 3.92% 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 subsection 26 USC 414(h)(2) of the Internal 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.
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 July 1, 2025, 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 3.92% 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 ________ day of ________, 2025.
___________________________________
Chris Wharton, Council Chair
ATTEST:
_________________________
Keith Reynolds, City Recorder
Transmitted to Mayor on ____________________________.
Mayor’s Action: _________ Approved. ____________ Vetoed.
___________________________________
Erin Mendenhall, Mayor
ATTEST:
_________________________
Keith Reynolds, City Recorder
APPROVED AS TO FORM
Office of the City Attorney
Date:___________ _____________
By: _______________________________
Jaysen Oldroyd, Senior City Attorney
_________