Legislation # 08-0326 Enactment Number none
Type Resolution Effective Date none
Introduction Date 8/20/2008
Title Affirmation of Authorization to Pick Up the Employee’s Contribution to the Virginia Retirement System (VRS) for the City of Hampton, 55207 under Section 414(h) of the Internal Revenue Code.
 
Legislation History 08-0326
DateNotice Of ActionDescription
8/20/2008 Approved items 1 through 14 and 17 on the consent agenda.
7/28/2008 Received By Clerk's Office
 
View Attachments 08-0326
FileTypeSizeDescription
No attachment(s) found
 
Legislation Text 08-0326

 

City of Hampton, Virginia

Resolution

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 08-0326

 

Enactment Number: -

 

Affirmation of Authorization to Pick Up the Employees Contribution to the Virginia Retirement System (VRS) for the City of Hampton, 55207 under Section 414(h) of the Internal Revenue Code.

 

RESOLUTION

WHEREAS, the City of Hampton provides its employees with tax deferral pursuant to Section 414(h) of the Internal Revenue Code with respect to their member contributions to the Virginia Retirement System (referred to as VRS) by picking up member contributions to VRS; and

WHEREAS, VRS keeps track of such picked up member contributions, and treats such contributions as employee contributions for all purposes of VRS; and

WHEREAS, the Internal Revenue Service in Notice 2006-43 has provided transition relief for existing pick up arrangements provided that an authorized person takes formal action to evidence the establishment of the pick up arrangement no later than January 1, 2009; and

WHEREAS, in order to avail itself of the protection given under Notice 2006-43, the City of Hampton desires to affirm its intention to establish and maintain a pick up arrangement through formal action by its governing body.

NOW, THEREFORE, IT IS HEREBY RESOLVED that the existing member contribution pick up arrangement is hereby affirmed as it relates to salary reduction elections in effect prior to the date of this Resolution, and it is further

RESOLVED that effective the first pay day on or after August 20, 2008, the City of Hampton shall pick up member contributions of its employees to VRS, and such contributions shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of the United States; and it is further

RESOLVED that such contributions, although designated as member contributions, are to be made by the City of Hampton in lieu of member contributions; and it is further

RESOLVED that pick up member contributions shall be paid from the same source of funds as used in paying the wages to affected employees; and it is further

RESOLVED that member contributions made by the City of Hampton under the pick up arrangement shall be treated for all purposes other than income taxation, including but not limited to VRS benefits, in the same manner and to the same extent as member contributions made prior to the pick up arrangement; and it is further

RESOLVED that nothing herein shall be construed so as to permit or extend an option to VRS members to receive the pick up contributions made by the City of Hampton directly instead of having them paid to VRS; and it is further

RESOLVED that notwithstanding any contractual or other provisions, the contributions of each member of VRS who is an employee of the City of Hampton shall be picked up either through a reduction in the current salary of such employee or as an offset against future salary increases of such employee or as a combination of both at the option of the employer by the City of Hampton on behalf of such employee pursuant to the foregoing resolutions.

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on August 20, 2008.

 

 

 

Signed by ____________________________ Date _________________

Molly Joseph Ward, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council