2014-05-03 VRS Employee Contributions I
Vtttgptbanta (ountp Roarb of 'uperbtoorti
RESOLUTION
2014-05-03
Member Contributions by Salary Reduction for Counties, Cities, Towns, and Other
Political Subdivisions
WHEREAS, the Board of Supervisors of Pittsylvania County 55171 employees who are
Virginia Retirement System members who commence or recommence employment on or after
July 1, 2012, shall be required to contribute five percent of their creditable compensation by
salary reduction pursuant to Internal Revenue Code § 414(h) on a pre-tax basis upon
commencing or recommencing employment; and
WHEREAS, the Board of Supervisors of Pittsylvania County employees who are
Virginia Retirement System members and in service on June 30, 2012, shall be required to
i
contribute five percent of their creditable compensation by salary reduction pursuant to Internal
1 Revenue Code § 414(h) on a pre-tax basis no later than July 1, 2016; and
WHEREAS, such employees in service on June 30, 2012, shall contribute a minimum of
an additional one percent of their creditable compensation beginning on each July 1 of 2012,
2013, 2014, 2015, and 2016, or until the employees' contributions equal five percent of
1
creditable compensation; and
WHEREAS, the Board of Supervisors may elect to require such employees in service on
June 30, 2012, to contribute more than an additional one percent each year, in whole
percentages, until the employees' contributions equal five percent of creditable compensation;
and
WHEREAS, the second enactment clause of
Chapter 822 of the 2012 Acts of Assembly
(SB497) requires an increase in total creditable compensation, effective July 1, 2014, to each
i
such employee in service on June 30, 2014, to offset the cost of the member contributions, such
increase in total creditable compensation to be equal to the percentage increase of the member
I
1
I
1
1 contribution paid by such pursuant to this resolution (For example, if the member contribution
paid by the employee increases from two to three percent pursuant to this resolution, the
employee must receive a one percent increase in creditable compensation.)
BE IT THEREFORE RESOLVED, that the Board of Supervisors of Pittsylvania
County does hereby certify to the Virginia Retirement System Board of Trustees that it shall
effect the implementation of the member contribution requirements of Chapter 822 of the 2012
Acts of Assembly (SB497) according to the following schedule for the fiscal year beginning July
1 1, 2014:
I
PLAN 1 Percent PLAN 2 Percent
1 Employer Paid Employer Paid
Member Contribution 2% Member Contribution 2%
Employee Paid Employee Paid
Member Contribution 3% Member Contribution 3%
Total 5% Total 5%
BE IT FURTHER RESOLVED, that such contributions, although designated as
member contributions, are to be made by the Board of Supervisors of Pittsylvania County in lieu
of member contributions; and
BE IT 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
BE IT FURTHER RESOLVED, that member contributions made by the Board of
Supervisors of Pittsylvania County 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
BE IT FUTHER 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 Board of
Supervisors of Pittsylvania County directly instead of having them paid to VRS; and
BE IT FURTHER RESOLVED, that notwithstanding any contractual or other
provisions, the wages of each member of VRS who is an employee of the Board of Supervisors
of Pittsylvania County shall be reduced by the amount of member contributions picked up by the
Board of Supervisors of Pittsylvania County on behalf of such employee pursuant to the
foregoing resolutions; and
BE IT FURTHER RESOLVED, that in accordance with the Appropriation Act, no
salary increases that were provided solely to offset the cost of required member contributions to
the Virginia Retirement System under § 51.1-144 of the Code of Virginia will be used to certify
that the salary increases required by the Appropriations Act have been provided.
NOW, THEREFORE,the officers are hereby authorized and directed in the name of the
Board of Supervisors of Pittsylvania County to carry out the provisions of this resolution, and
said officers are authorized and directed to pay over to the Treasurer of Virginia from time to
time such sums as are due to be paid by the Board of Supervisors for this p �u ose.
Je sie L. Barksdale, ' hairman
Pittsylvania County Board of Supervisors
CERTIFICATE
I, Otis S. Hawker, Clerk of the Board of Supervisors, certify that the foregoing is a true
and correct copy of a resolution passed at a lawfully organized meeting of the Board of
Supervisors of Pittsylvania County held at Courthouse in Chatham, Virginia at 7:00 p.m. on
Monday, May 5, 2014. Given under my hand and seal of the Board of Supervisors of
Pittsylvania County, Virginia this 5th day of May, 2014.
Otis S. Hawker, Cler
Pittsylvania County Board of Supervisors