HomeMy WebLinkAboutResolutions - R-12-010 - 04/23/2012 - PROVIDING FOR POLICE PENSION FUND PAYMENT FROM PARR-12-010
RESOLUTION PROVIDING FOR PROCEDURES TO FUND THE MCHENRY POLICE
PENSION FUND FROM PARTICIPANTS' CONTRIBUTIONS
WHERAS the City of McHenry has adopted Article 3 of the Illinois Pension Code
pertaining to the creation of a police pension fund in conformance with 40 ILCS 5/3-101, et
as amended; and
WHERAS the City of McHenry has previously established and created the McHenry
Police Pension Fund in accordance with 40 ILCS 5/3-101, as amended; and
WHERAS the City of McHenry police officers are required to contribute a percentage of
their respective salaries to the Police Pension Fund pursuant to 40 ILCS 5/3-125.1, as amended;
and
WHEREAS the City of McHenry desires to "pick up" the police officer's contributions
to the Police Pension Fund in accordance with 40 ILCS 5/3-125.2 of the Illinois Pension Code,
as amended, by reducing the current cash salaries of such police officers; and
WHEREAS the City of McHenry desires to cease withholding Federal and State income
taxes on "picked up" contributions, as provided by 40 ILCS 5/3-125.2 of the Illinois Pension
Code pursuant to United States Internal Revenue Code Section 414(h), and that such
contributions shall not be included as gross income of the police officers until such time as they
are distributed or made available to the individual police officer, or his or her heirs by the
McHenry Police Pension Fund.
NOW THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City
of McHenry, Illinois that:
Section 1. The City of McHenry shall "pick up" police officers' contributions to the
McHenry Police Pension Fund in accordance with 40 ILCS 5/3-125.2 of the
Illinois Pension Code, as amended;
Section 2. The contributions, although designated as employee contributions, are being paid
by the City of McHenry in lieu of contributions by the employee;
Section 3. The amount of the contribution shall be 9.91% in accordance with 40 ILCS 5/3-
125.1;
Section 4. Police officers' current cash salaries shall be reduced by an amount equal to the
amount "picked up" by the City of McHenry;
Section 5. The City of McHenry shall not withhold Federal and State income taxes on the
"picked up" contributions;
Section 6. Police officers will not be given the option to receive cash directly in lieu of
contributions; and
Section 7. That this Ordinance shall be in full force and effect immediately after its passage
in the manner provided by law.
BE IT FURTHER RESOLVED that a copy of this Resolution shall be made a permanent part
of the City Council minutes.
PASSED AND APPROVED this 23`d day of April 2012.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon
Voting Nay: None
Not Voting: None
Absent: None
Abstained: None
ATTEST:
Ja ice C. Jo es, ity Clerk
oft 2 S�
Susan E. Low, Mayor
2