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Home My WebLink About091-10The Virginia General Assembly, in its 2010 session passed legislation creating a separate retirement plan for employees hired on or after July 1, 2010 (hereafter referred to as "Plan 2" employees }. The legislation amended �rA Code § 5 i .1 -144 to provide that Plan 2 employees will pay their S percent member contribution and that, gent other action by the employer, such contribution will be paid through salary reduction according to Internal Revenue Code § 414 (h). Internal Revenue Code § 414 (h} provides that a governmental employer may "pick -up" mandatory employee contributions and thereby cause the contributions to be made on a pre -tax basis. The formal written action required by Internal Revenue Code § 414 (h) to effect the pick -up has been taken by the General Assembly with the Governor's signature. The legislation also permits each county, city, town, local public school board or other local employer to pick- up, in whole or in part (in 1 percent increments), the 5 percent member contribution as an additional benefit not paid as salary. The employer's optional payment of the 5 percent member contribution may be phased in over a period approved by the VRS Board not to exceed b years and may only be made on a uniform basis for all its Plan 2 employees. The formal written action required by Internal Revenue Code § 414 (h) to effect the pick -up using the alternatives permitted by the legislation must be taken by the governing body of the specific employing entity and must be effective only an a prospective basis. Please indicate, by selecting one option below, how member contributions will be paid: ❑ This is to acknowledge that (Employer Name} will have the employees pay the 5 percent member contribution according to the terms of the legislation. This action does not require action by your governing body. (Authorized Signature) (Date) ❑ This is to acknowledge that Frederick County (Employer Name} elects to pick -up some or all of the 5 percent member contributions as detailed in the following duly approved resolution. RESOLUTION Authorization to Pick -up the Employee's Contribution to VRS Under § 414(h) of the Internal Revenue Code For Plan 2 Employees WHEREAS, the Virginia General Assembly, in its 2010 session passed legislation creating a separate retirement plan for employees hired on or after July 1, 2010 (hereafter referred to as "Plan 2 Employees "). The legislation stipulates that Plan 2 Employees will pay their 5 percent member contribution and that, absent other action by the employer, such contribution will be paid through salary reduction according to Internal Revenue Code § 414 (h) on a pre -tax basis; and WHEREAS, the legislation allows certain employers, including the Frederick Count , (Employer Name) to pick -up and pay all or a portion of the member contributions on behalf of its Plan 2 Employees as an additional benefit not paid as salary; and WHEREAS, the election to pick -up and pay all or a portion of the member contributions on behalf of its Pian 2 Employees as an additional benefit not paid as salary shall, once made, remain in effect for the applicable fiscal year (July 1 -June 30) and shall continue in effect beyond the end of such fiscal year absent a subsequent resolution changing the way the 5 percent member contribution is paid; and Page 1 of 2 WHEREAS, employee contributions that are picked -up as an additional benefit not paid as salary are not considered wages for purposes of VA Code § 51.1 -700 et sect. nor shall they be considered salary for purposes of VA Code § 51.1 -100 et seq.; and - IEREAS, the Frederick County (Employer Name} desires to pick -up and pay its Plan 2 Employees' member contributions to VRS as an additional benefit not paid as salary in an amount equal to {1 %) (2 %) {3 %) (4 %) (5 %) of creditable compensation; and WHEREAS, VRS tracks such picked -up member contributions and is prepared to treat such contributions as employee contributions for all purposes of VRS. NOW, THEREFORE, IT IS HEREBY RESOLVED that effective the first day of July � stated month must be after the date this Resola><tion is adopted], theFrederick Count�mployer Name) shall pick -up member contributions of its Plan 2 Employees to VRS as an additional benefit not paid as salary in an amount equal to {1 %} {2 %} (3 %) (4 %) (5 %) of creditable compensation subject to the terms and conditions described above; and it is further RESOLVED that such contributions, alihough designated as member contributions, are to he made by the Frederick CQ��5loyer Name) in lieu of rz�.ember contributions; 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 picked -up contributions made by the Frederick Count�mployer Name} directly instead of having them paid to VRS. A �iopted in Frederick Count�Virginia this 23r day of June, 2D10 , �_� Au zed lgnature Title J n R. Riley, Jr. County Administrator Counfiy o� Frederick, Virginia Resolution ��09t —tD Page 2 of 2 1947006v1 COUNTY of FREBERICK Finance Department Cheryl B. Shiffle�- Director 5401665 -56I 0 Fax: 5401667 -03 70 E- inaiE: cshiffle @co.fi•ederick.va.us TO: Board of Supervisors FROM: Finance Committee DATE: June I6, 2010 SUBJECT: Finance Committee Report and Recommendations The Finance Committee met in the First Floor Conference Room at 107 North Kent Street on Wednesday, June 16, 2010 at 8:00 a.rn. Members Richie Wilkins and Richard Shickle were absent. {�) Items 1 and 3 were approved under consent agenda. Item 2 was deleted from the agenda. I. (�`) The Sheriff requests an FYIO General Fund supplemental appropriation in the amount of $893. This amount represents reimbursements for DARE t- shirts. No local funds needed. See attached memo, p. 1. 3. {�) The Public Works Director requests an FY11 General Fund su lemental a ro riation in the amount of $7,600. This amount represents unspent grant funds received in FY10 from the Chesapeake Bay Restoration Fund. See attached memo, p. 3 -� 5. 4. The Public Works Director requests an FY11 Landfill Fund supplemental appropriation in the amount of $1,700,000. This amount represents unspent FY10 funds in the amounts of $200,000 for landfill improvement projects and $1,500,000 for landfill closure. See attached memo, p 3 _ 5. The committee recommends approval. 107 North Kent Streef •Winchester, Virginia 22601 Finance Committee Report and Recommendations June 16, 2010 Page 2 5. The NRADC Superintendent requests an FY11 NRADC Fund. supplemental appropriation in the amount of $10&,470 for rebate arbitrage payment to the IRS. See attached memo, p. 6. The committee recommends approval. 6. The County Administrator requests an FYIO General Fund supplemental appropriation in the amount of $2,000 from the transportation reserve funds. This amount represents the 2010 membership fee for the I -$1 Corridor Coalition. See attached memo, p. 6 — 9. The committee recommends approval. 7. The Finance Director requests discussion on the VRS resolution. See attached info, p. 10 — 11. The committee recommends approval of the attached resolution for the County to continue to contribute the 5% to VRS for all employees. 8. Discussion is requested on Starting Point and the Public Inebriate Center. See attached info, p. 12 _ 23. The committee recommends a DCS Fund supplemental appropriation in the amount of $10,000 in order to complete the plans for renovations. The committee also recommends that the completed plans are forwarded to the Public Works committee for their review. Also recommended by the committee is to continue the operation of the Public Inebriate Center on weekends as funds allow. 9. The Commissioner of the Revenue discusses the ad valorem assessment of personal property. See attached letter, p. 24 — 2b. Information Only 1. The Finance Director provides April 30, 2010 financial statements. See attached, p. 27 -- 38. 2. The Finance Director provides the Fund 10 Transfer report. See attached, p. 39 — 45. Finance Committee Report and Recoznrz�endations June 16, 2010 Page 3 3. The Finance Director provides the May 2010 Unreserved. Fund Balance report. See attached, p. 46. 4. The AARP Tax Aide Program sends a letter of appreciation for the County's contribution. See attached, p. 47. Respectfully submitted, FINANCE COMMITTEE Bill M. Ewing Charles DeHaven Ron Hottle Stephen Swiger �� Cheryl B. Shiffler, Fin Director