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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. * * * C: * rTI RESOLUTION NO. NO. 94-119 c:o s Iv M 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 1 - RESOLUTION 94-119 (12-7-94) �9�5 MICROFILMED '1 0 FEB 0 81995 013'7-1635 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. 2 - RESOLUTION 94-119 (12-7-94) 0137-1636 (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. 3 - RESOLUTION 94-119 (12-7-94) 0137-1637 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 4 - RESOLUTION 94-119 (12-7-94)