HomeMy WebLinkAboutResolution 2011 (61) RESOLUTION EUPLEMENTING COUNTY PICK -UP OF EMPLOYEE RETIREMENT
CONTR1BUTIONS PURSUANT TO 26 U.S.C. § 414(h)(2)
Resolution No. L , I «C 11)
St. Croix County, Wisconsin
WHEREAS, under 26 U.S.C. § 414(h)(2), employee contributions to a public employer
pension plan may be picked up, i.e., paid for, on a pre -tax basis by the public employer and
excluded from an employee's yearly gross income (until distributed or made available to the
employee) if the employer specifies that the contributions, although designated as employee
contributions to the plan, are being paid by the employer in lieu of contributions by the
employee, and the employee cannot choose to receive the amounts directly instead of having
them paid by the employer; and
WHEREAS, the Board of Supervisors has determined that, even though such
implementation is not required by law, the tax benefit of § 414(h)(2) in reducing taxable
employee gross income should be provided to all County employees contributing to the
Wisconsin Retirement System (WRS).
THEREFORE, BE IT RESOLVED THAT:
1. Pursuant to 26 U.S.C. § 414(h)(2), the Board of Supervisors hereby implements an
employer pick -up of employee retirement contributions as to all County employees.
2. Pursuant to this resolution, picked -up contributions, though designated as employee
contributions to VMS, will be picked up on a pre -tax basis by the County in lieu of
contributions by the affected employees, and the wages of such employees shall be
reduced by a corresponding amount for current income tax purposes, but not FICA
purposes.
3. Amounts picked -up by the County shall be paid from the same source of funds as
used in paying the wages of the affected employees.
4. Amounts picked -up by the County shall be treated for all purposes, other than
taxation on gross income, in the same manner and to the same extent as employee
contributions made prior to the effective date of this resolution.
5. The affected employees shall not have the option of receiving the picked -up amounts
directly instead of having them paid by the County.
6. The terms of this resolution shall be operative only so long as public employer pick-
up of employee retirement contributions continues to be excludable from employee
gross income under the Internal Revenue Code.
RESOLUTION IMPLEMENTING COUNTY PICK-UP OF EMPLOYEE RETIREMENT CONTRIBUTIONS PURSUANT TO 26
U.S.C. § 414(h)(2) - Continued
T. The Board of Supervisors makes no representations or guarantees regarding the tax or
financial consequences of employer pick-up to any particular employee contributing
to VVRS and hereby notifies all such employees to seek, at their own expense,
appropriate financial, legal or tax advice with respect to their particular financial
questions or situation.
8. The terms of this resolution shall become effective only if an employee is required to
make a mandatory employee contribution by wage or salary reduction to WRS
pursuant to Wisconsin law.
Offered by the Administration Committee
YES NO ABSTAIN ABSEN SUPERVISOR
X ❑ ❑ ❑ Ryan sicard
❑ El ❑ ❑ Esther Wentz
❑ ❑ ❑ Roger RebhoLz
Lorin Sather
Sharon Norton-
Bauman
Buck Malick
�❑ ❑ ❑ Daryl Standafer
This Resolution was adopted by the St. Croix County Board
Reviewed as to form on of Supervisors on
Greg Timmerman, Corporation Counsel LCindy Campbefl, County Cferk
2