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 Delano
 Code of Ordinances
 Title 2. ADMINISTRATION AND PERSONNEL
 Chapter 2.52. EMPLOYEE PENSION PLAN

  § 2.52.040. Contributions.  

Latest version.

  • A.

    Funding. The cost of benefits under the Plan will be provided by the Employer in such amounts as the Employer in its sole discretion shall determine to be necessary to fund such benefits; provided, however, that the Employer shall contribute at least such amounts as are deemed necessary by an actuary to fund the benefits provided by the Plan on an actuarially sound basis. The Employer will pay its contributions directly to the Trust at the time required by California law

    B.

    Participant Contributions.

    1.

    Each Participant must contribute a percentage of his or her Compensation to the Plan. The contribution rates are subject to provision of certain union contracts and agreements. (The current rates are given in Appendix A.) Since the enrollment in the Plan by a Participant is mandatory, the Participant is not permitted to withdraw the Participant's contributions while the Participant is employed by the Employer.

    2.

    All Participant contributions will be deducted from the Participants' Compensation by payroll deduction and will be paid by the Employer to the Plan on behalf of Participants. Contributions under this Section must be transmitted to the Trustee and credited to Participants' Accounts by the last business day of the month after the month in which the contribution is deducted.

    3.

    Effective February 1, 2011, although designated as employee contributions, Participant contributions will be picked up by the Employer for tax purposes in accordance with Section 414(h)(2) of the Code and will be treated as pre-tax Employer contributions. Participants will not have the option of receiving the contributed amounts instead of having them paid by the Employer to the Plan.

    4.

    Notwithstanding any provision of the Plan to the contrary, the Employer may pay all or any portion of the contributions required to be paid by a Participant under this Subsection B. (The portion of Participant contributions currently paid by the Employer is shown in Appendix A.) The payments will be accounted for under the Plan as Participant contributions and, as such, will be credited to the Participant's Accounts. Nothing in this paragraph will be construed to limit the authority of Employer to periodically increase, reduce, or eliminate the payment by the Employer of all or a portion of the contributions required to be paid by Participants.

    C.

    Application of Forfeitures. Forfeitures will not be applied to increase the benefits any Participant would otherwise receive under the Plan, but will be applied to pay the Plan's reasonable expenses, reduce the Employer's contributions for normal costs in the current year or allocated to a reserve to reduce normal costs, or reduce unfunded past service liability, if any.

(Ord. No. 2011-1221, § 1(Exh. 1), 2-7-2011)