1995-01016-Resolution No. 94-119 Recorded 12/7/1994REVIEWED
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES' ;LA��"r
ACTING AS THE GOVERNING BODY OF THE
DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT
A Resolution Amending the
District's Policy Regarding
PERS Contributions for
Non -Represented District
Employees to Comply with
Ballot Measure 8 and
Declaration of Employer
Pick -Up for Purposes of IRC
Section 414(h) and Setting
an Effective Date.
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RESOLUTION NO. NO. 94-119
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WHEREAS, the Deschutes County Extension and 4-H County Service
District (District) is a participant, by and through Deschutes County
(County), in the Public Employees' Retirement System (PERS) and all
qualified District employees, as that term is used herein, are members
of PERS; and
WHEREAS, the District, by and through the County, has chosen,
pursuant to ORS 237.075, to pay on behalf of each qualifying employee
the employee contribution to PERS; and
WHEREAS, on November 8, 1994, the voters of the State of Oregon
approved Ballot Measure 8, which requires that members of PERS
contribute 6 percent of their salary or gross wage to PERS; and
WHEREAS, it is necessary for the District to change its current
retirement contribution policies and practice in order to comply with
Ballot Measure 8; and
WHEREAS, the District desires to comply with Ballot Measure 8,
while protecting its employees consistent with Ballot Measure 8; now,
therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, ACTING AS THE GOVERNING BODY OF THE DESCHUTES COUNTY
EXTENSION AND 4-H COUNTY SERVICE DISTRICT, as follows:
Section 1. Implementation of Ballot Measure 8 PERS Withholding.
(1) Effective with the pay period beginning January 1, 1995, the
District, by and through the County, shall suspend its current policy
and practice of directly paying on behalf of qualif ing e 11 mployees the
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FEB 0 81995
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6 percent employee contribution to PERS allowed by ORS 237.075
(employee "pick-up") and shall, as required by Ballot Measure 8,
commence withholding, along with other required withholdings, from each
qualifying employee's salary or gross wage a sum in the amount of 6
percent of the employee's salary or gross wage as the employee's PERS
contribution and shall pay such amount withheld for PERS directly to
PERS as the employee's PERS contribution.
(2) The withholding of and payment to PERS by the District, by
and through the County, of the employee PERS contribution provided for
in Subsection (1) above shall become the policy of the District when
any suits or actions, including appeals, bearing on the constitu-
tionality of Ballot Measure 8 as it applies or may apply to the
District's withholding and payment to PERS of such PERS contributions
are finally resolved in a manner to uphold Ballot Measure 8 or when the
statute of limitations runs for bringing any such suits or actions,
whichever occurs later.
Section 2. Special Fund or Account. The Governing Body is autho-
rized to adopt a resolution to hold aside in a special interest-bearing
fund or account for the benefit of its qualifying employees the funds
that it would otherwise have contributed to PERS on behalf of such
qualifying employees until such time as any suits or actions, including
appeals, bearing on the constitutionality of Ballot Measure 8 as it
applies or may apply to the District's withholding and payment to PERS
of such PERS contributions are finally resolved or when the statute of
limitations for bringing any such suit or action has run, whichever
occurs later. The special fund or account established under this
paragraph may be established in conjunction with a similar fund or
account established by the Board of Commissioners of Deschutes County
to serve a similar purpose for the County's qualifying employees and
qualifying elected officials.
Section 3. PERS Contribution as Excludable from Gross Income for
Federal Income Tax Purposes.
(1) Effective with the pay period commencing January 1, 1995, the
6 percent PERS contribution withheld under Section 2 of this resolution
from each qualifying employee's salary shall be paid to PERS by the
District, by and through the County, in lieu of payment to PERS by the
employee; the employee shall have no option to receive the contributed
amount directly instead of having it paid by the District, by and
through the County, to PERS.
(2) The salary earned after the effective date of this resolution
and reported thereafter on each qualifying employee's W-2 form for
federal income tax purposes shall be reduced by the amount of the
employee's PERS contribution.
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(3) For the limited purposes of Internal Revenue Code Section
414(h)(2), and related tax statutes, the employee's contribution to
PERS will be picked up by the District, by and through the County, as
a pre-tax contribution as the term "picks up" is used in the Internal
Revenue Code.
(4) The District shall provide PERS with written notification of
enactment of this resolution no later than January 6, 1995.
Section 4. Definitions. For the purposes of this resolution, the
following definitions apply:
(1) "Qualifying employee" means any employee of the District who
has satisfactorily completed the employee's six-month probationary
period in a manner consistent with ORS 237.011 and who holds a position
requiring that the employee works in excess of six hundred hours per
year.
(2) "Ballot Measure 8" means that measure proposed by initiative
petition to amend Article IX of the Oregon Constitution regarding
public employee pensions that appeared as Measure No. 8 on the general
election ballot on November 8, 1994.
Section 5. Applicability.
(1) Except as set forth herein, this resolution applies to any
District employee who is a qualifying District employee on the date the
provisions of this resolution become applicable and to any District
employee not qualifying as of that date who later becomes a qualifying
employee, as that term is defined herein, at any time thereafter, as of
the date that such employee becomes a qualifying employee.
(2) This resolution shall not apply to any State of Oregon
employee assigned to the District.
Section 6. Liability. Should any portion of this resolution be
determined by final order of a court or agency of competent
jurisdiction to be unlawful or ineffective, and if any payment or
repayment is required as a result of such determination, the employees
receiving any benefit under this resolution shall be responsible for
such repayment, including any interest, with each employee's share of
the total obligation to be determined in a prorated amount by the
Governing Body.
Section 7. Severability. If any provision of this resolution is
held invalid for any reason by a court or administrative body of
competent jurisdiction, the remaining provisions shall remain valid and
in full force and effect.
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Section 8. Effective Date. This resolution shall take effect
immediately.
DATED this 7th day of December, 1994.
BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON, ACTING AS THE
GOVERNING BODY OF THE DESCHUTES COUNTY
EXTENSION AND 4-H COUNTY SERVICE
D STRICT
NANCY PO HLAN EN, Chair
AT T: TOM OOP, Commi 'oner
Recording Secretary BARRY H. SLAUGHTER, dommissioner
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