HomeMy WebLinkAboutD-1514-01 CPD/CFD Pension FundSPONSOR(S): Councilor Canter
ORDINANCE NO. D-1514-01
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA,
AMENDING CHAPTER 2, DIVISION VI, ARTICLE 4, SECTION 2-111
OF THE CARMEL CITY CODE
WHEREAS, the City of Carmel, Indiana ("City"), has established and participates in the Indiana
1977 Police Officers and Firefighters Pension and Disability Fund (I.C. 36-8-8-1, ~ seq., as amended),
the 1937 Firefighters' Pension Fund (I.C. 36-8-7-1 et seq., as amended), and the 1925 Police Pension
Fund (I.C. 36-8-6-1 et seq., as amended) (heroinafter referred to collectively as the "Fund"); and
WHEREAS, the City wishes to provide its Fund participants with the benefit of having their '
portion of Fund contributions treated as "pre-tax" contributions to be excluded from their gross income
(W-2 salary) for purposes of state and federal income taxation; and
WHEREAS, the City can accomplish the above by designating such mandatory employee Fund
contributions as being "picked up" by the City, as the Fund Employer.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Carmel,
Indiana, as follows:
Section I: The foregoing Recitals are fully incorporated herein by this reference.
Section II: Chapter 2, Division VI, Article 4, Section 2-111 of the Carreel City Code is hereby
amended to read as follows:
"Sec. 2-111 Police and Fire Pension Funds (Funds 801 and 802).
The Police and Fire Pension Funds have been established for purposes set forth in I.C.
36-8-7 (1937 Fire Fund); I.C. 36-8-8 (1977 Fire Fund); I.C. 36-8-6 (1925 Police Fund);
and I.C. 36-8-8 (1977 Police Fund),
Effective as of the date of this Ordinance, and to the fullest extent allowed by law, all
employee contributions to the Fund shall be designated as being "picked up" by the City,
pursuant to Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, so as
to permit such contributions to be considered "pre-tax contributions" for purposes of the
contributing employee's W-2 salary as utilized in assessing state and federal income
taxes until distributed from the Fund.
The affected employees shall not be entitled to any option of choosing to receive the
contributed amounts directly instead of having them paid by the City to the Fund.
No contributions prior to the effective date of this Ordinance shall be designated as being
"picked up".
Section III. All prior ordinances or parts thereof inconsistent with any provision of this Ordinance
are hereby repealed as of the effective date of this Ordinance.
Prepared by Douglas C. Haney, Carmel City Attorney
[eb:msword:c:\temp\amd sec 2-1 ] ] pre tax contfibufion doc:l 1/8/01]
SPONSOR(S): Councilor Canter
Section IV. If any portion of this Ordinance is for any reason declared to be unconstitutional or
invalid, such decision shall not affect the validity of the remaining portions of this Ordinance so long as
enforcement of same can be given the same effect.
Section V. This Ordinance shall be in full force and effect from and after its passage and signing
by the Mayor.
PASSED by the Common Council of the City of Carmel, Indiana, this/q/7da of (,. [ ~ }(/~]~' ~
Y
,2001, by a vote of ~ ayes and (; nays.
e~siding Offi~ COUNCIL FOR THE
I<2 ~.i~_ n~
CITY OF CARMEL
eN L R~dde~
ATTEST:
Diana L. Cordr~'2 IAMC, Cle;~-~'reasurer
Presen,ed hy me to ,he Mayor of the city of c~,el, ,ndiana ,~,,/'~ ~'a~ o~ ~-~..
2001, at
2001, at
ATTEST:
Prepared by Douglas C. Handy, Carmel City Attorney
[eb:msword:c:%temp\amd sec 2-I 11 pre tax contribution.doe: 1 l/g/0l]