A RESOLUTION TO AFFIRM AUTHORIZATION TO PICK-UP THE EMPLOYEE’S CONTRIBUTION TO THE VIRGINIA RETIREMENT SYSTEM (VRS) FOR FAUQUIER COUNTY, VRS GROUP #55130 UNDER § 414(H) OF THE INTERNAL REVENUE CODE
WHEREAS, the Fauquier County Board of Supervisors provides its employees with tax deferral pursuant to § 414(H) of the Internal Revenue Code with respect to their member contributions to the Virginia Retirement System (referred to as VRS) by picking up member contributions to VRS; and
WHEREAS, VRS keeps track of such picked up member contributions, and treats such contributions as employee contributions for all purposes of VRS; and
WHEREAS, the Internal Revenue Service in Notice 2006-43 has provided transition relief for existing pick-up arrangements provided that an authorized person takes formal action to evidence the establishment of the pick-up arrangement no later than January 1, 2009; and
WHEREAS, in order to avail itself of the protection given under Notice 2006-43, the Fauquier County Board of Supervisors desires to affirm its intention to establish and maintain a pick-up arrangement through formal action by its governing body; now, therefore, be it
RESOLVED by the Fauquier County Board of Supervisors this 14th day of August 2008, That the existing member contribution pick-up arrangement be, and is hereby, affirmed as it relates to salary reduction elections in effect prior to the date of this Resolution; and, be it
RESOLVED FURTHER, That effective the first pay day on or after August 14, 2008, the Fauquier County Board of Supervisors shall pick-up member contributions of its employees to VRS, and such contributions shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of the United States; and, be it
RESOLVED FURTHER, That such contributions, although designated as member contributions, are to be made by the Fauquier County Board of Supervisors in lieu of member contributions; and, be it
RESOLVED FURTHER, That pick-up member contributions shall be paid from the same source of funds as used in paying the wages to affected employees; and, be it
RESOLVED FURTHER, That member contributions made by the Fauquier County Board of Supervisors under the pick-up arrangement shall be treated for all purposes other than income taxation, including but not limited to VRS benefits, in the same manner and to the same extent as member contributions made prior to the pick-up arrangement; and, be it
RESOLVED FURTHER, That nothing herein shall be construed so as to permit or extend an option to VRS members to receive the pick-up contributions made by the Fauquier County Board of Supervisors directly instead of having them paid to VRS; and, be it
RESOLVED FINALLY, That notwithstanding any contractual or other provisions, the contributions of each member of VRS who is an employee of the Fauquier County Board of Supervisors shall be picked up either through a reduction in the current salary of such employee, or as an offset against future salary increases of such employee, or as a combination of both, at the option of the employer by the Fauquier County Board of Supervisors on behalf of such employee pursuant to the foregoing resolutions.
A Copy Teste
Paul S. McCulla
Adopted in the County of Fauquier, Virginia this 14th day of August, 2008.