The following contributions are made to the Retirement Savings Plan: Mandatory employee contributions made under<cite data-path="|22A|§5-2">§ 5-2 {“Mandatory contributions by non-hybrid members”} of this subtitle</cite>; Employer contributions made under <cite data-path="|22A|§5-3">§ 5-3 {“Employer contributions”} of this subtitle</cite>; and Rollover contributions made under <cite data-path="|22A|§5-4">§ 5-4 {“Rollover contributions”} of this subtitle</cite>. Ord. 14-216

This section applies only to non-hybrid members of the Plan. Beginning with the first full payroll period that starts on or after the date on which a non-hybrid member commences participation in the Retirement Savings Plan and continuing through the last full payroll period ending on or before termination of employment with a participating employer:for each payroll period, the member must contribute to the Plan 5% of the member’s earnable compensation for that payroll period; for each payroll period, the Department of Finance will cause the contribution to be deducted from the member’s earnable compensation for that payroll period; and as soon as administratively practicable after the deduction is taken, the contribution will be credited to the member’s Mandatory Employee Contribution Sub-Account. The contributions described in this section are intended to be treated as being “picked up” by the participating employer within the meaning of IRC § 414(h)(2). The amount of each mandatory employee contribution is paid by the employer in lieu of contributions by members, and members may not receive those amounts directly. Because the mandatory employee contributions are paid by the employer, they must be treated as employer contributions in determining their federal income tax treatment. The picked-up contributions may not be excluded in computing any other benefit paid in connection with the member’s employment with a participating employer. As soon as administratively practicable after enactment of <cite data-path="|22A">this article</cite>, the City will request a private letter ruling from the Internal Revenue Service to the effect that the contributions so picked up by the employer on behalf of members will be treated as employer contributions under IRC § 414(h)(2) and will not be includible in the member’s gross income for federal income tax purposes for the year in which they are contributed. If the Internal Revenue Service rules that the pick up of contributions does not satisfy the requirements of IRC § 414(h)(2), or if IRC § 414(h)(2) is repealed, the contributions required under this section will remain in effect, but the contributions may no longer be treated as picked up and instead will be treated as paid directly by the member. Ord. 14-216

Employer contributions must be made to the Retirement Savings Plan as provided in this section. For each payroll period in which a non-hybrid member makes a mandatory employee contribution under <cite data-path="|22A|§5-2">§ 5-2 {“Mandatory contributions by non-hybrid members”} of this subtitle</cite>, the member’s employer must contribute to the Retirement Savings Plan an amount equal to 4% of the member’s earnable compensation for that payroll period. As soon as administratively practicable after the employer contribution is made, the contribution will be credited to the non-hybrid member’s Employer Contribution Sub-Account. For each payroll period in which a hybrid member has earnable compensation and the Class D funded status is 85% or more, the hybrid member’s employer must contribute to the Retirement Savings Plan 3% of the member’s earnable compensation for that payroll period. For each payroll period in which a hybrid member has earnable compensation and the Class D funded status is less than 85%, the hybrid member’s employer must contribute to the Retirement Savings Plan 1.5% of the members’s earnable compensation for that payroll period. As soon as administratively practicable after the employer contribution is made, the contribution will be credited to the hybrid member’s Employer Contribution Sub-Account. For purposes of paragraphs (2) and (3) of this subsection, the Class D funded status for a payroll period is the ratio described in subparagraph (ii) of this paragraph as of June 30 of the calendar year immediately preceding the calendar year in which the payroll period begins. Except as provided in subparagraph (iii) of the paragraph, the Class D funded status as of each June 30 is the ratio that the Employees’ Retirement System’s assets attributable to Class D members on that date, determined on an “adjusted market value basis”, bears to the Employees’ Retirement System’s liabilities attributable to Class D members on that date. The ratio will be determined by the actuary of the Employees’ Retirement System, using a methodology approved jointly by the Boards of this Plan and of the Employees’ Retirement System. Notwithstanding subparagraph (ii) of this paragraph, the Class D funded status for payroll periods beginning in calendar years 2014 and 2015 is 100%. For each payroll period in which a non-hybrid member makes a voluntary deferral to the City’s Deferred Compensation Plan, the member’s employer must contribute to the Retirement Savings Plan an amount equal to 50% of the amount deferred by the member for that payroll period, but taking into account only the amount deferred that does not exceed 2% of the member’s earnable compensation for that payroll period. As soon as administratively practicable after this employer contribution is made, the contribution will be credited to the non-hybrid member’s Employer Contribution Sub-Account. Ord. 14-216 Ord. 15-329 Ord. 20-458

Subject to the requirements of this section, a member may make 1 or more rollover contributions to the Retirement Savings Plan. As soon as administratively practicable after a rollover contribution is made, the contribution will be credited to the member’s Rollover Contribution Sub-Account. A member who wishes to make a rollover contribution must:file a request with the Board of Trustees in the form required by the Board; and establish to the satisfaction of the Board that amounts intended to be rolled over satisfy the conditions of <cite data-path="|22A|5|5-4|(c)">subsection (c)</cite> of <cite data-path="|22A|5|5-4">this section</cite>. Every rollover contribution must be:either:an “eligible rollover distribution” as defined in IRC § 402(f)(2)(A), including eligible distributions of designated Roth contributions described in IRC § 402a(c)(3); or eligible for rollover treatment under IRC § 408(d)(3), including eligible distribution from a Roth IRA described in IRC § 408(a) eligible for rollover treatment under IRC § 408(d)(3), including eligible distributions from a Roth IRA described in IRC § 408(a). made solely in cash; distributed from:a qualified plan under IRC § 401(a) or §403(a), except that amounts rolled over may not include nondeductible or after-tax contributions; a tax-sheltered annuity under IRC § 403(b); an eligible plan under IRC § 457(b) that is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state; or an individual retirement account under IRC § 408(a) or an individual retirement annuity under IRC § 408(b), except that amounts rolled over may not include nondeductible or after-tax contributions; and either transferred directly to the Retirement Savings Plan or, within 60 days of its receipt, contributed to the Plan by the member. Ord. 14-216 Ord. 20-458

To the extent required by USERRA, a non-hybrid member returning from an unpaid leave of absence on account of military service may make a 1-time irrevocable election to make up all or part of the mandatory employee contributions the member would have been required to make under <cite data-path="|22A|§5-2">§ 5-2 {“Mandatory contributions by non-hybrid members”} of this subtitle</cite> had he or she remained actively employed by a participating employer. The non-hybrid member’s makeup contribution is based on what the member’s earnable compensation would have been had the member remained actively employed. The election must:be made by filing with the Board of Trustees in the form required by the Board; and include the amount of mandatory employee contributions that the non-hybrid member wishes to make up and the period (not to exceed the lesser of 3 times the length of the leave of absence or 5 years) over which the contributions will be made. As soon as administratively practicable after the Board receives the non-hybrid member’s election, the Department of Finance will cause the amount of makeup contributions to be deducted from the member’s earnable compensation pro-rata for each payroll period during the period elected (but not beyond the last full payroll period ending on or before the member’s termination of employment with an employer). As soon as administratively practicable after each amount is deducted, the amount will be credited to the member’s Mandatory Employee Contribution Sub-Account. Makeup contributions made under this subsection will be treated as being “picked up” to the same extent as mandatory employee contributions are treated as being “picked up” under <cite data-path="|22A|§5-2I">§ 5-2I {“Mandatory contributions by non-hybrid members: ‘Picked-up’ Status”} of this subtitle</cite>. For each payroll period in which a non-hybrid member elects to make up mandatory employee contributions under subsection (a) of this section, the member’s employer must make a corresponding contribution to the Plan in an amount equal to 80% of the employee’s mandatory employee contribution for that payroll period (as determined under subsection (a) of this section). As soon as administratively practicable after the corresponding contribution is made, the contribution will be credited to the member’s Employer Contribution Sub-Account. For each payroll period in which a member elects to make up voluntary deferrals to the City’s Deferred Compensation Plan, the member’s employer must make a corresponding contribution to the Plan in an amount equal to 50% of the first 2% of compensation deferred by the member as a makeup contribution for that payroll period. As soon as administratively practicable after this corresponding contribution is made, the contribution will be credited to the member’s Employer Contribution Sub-Account. To the extent required by USERRA, the employer of a hybrid member returning from an unpaid leave of absence on account of military service must make an employer contribution to this Plan in an amount equal to the amount the employer would have been required to make, under <cite data-path="|22A|§5-3|(c)">§ 5-3(c) {“Employer contributions: Hybrid members”} of this subtitle</cite>, had the retiring member remained actively employed by a participating employer. As soon as administratively practicable after the contribution is made, the contribution will be credited to the hybrid member’s Employer Contribution Sub-Account. Ord. 14-216

In this section, the following terms have the meanings indicated. “Annual additions” means the sum of the following amounts credited to a member’s account for the Limitation Year:Mandatory employee contributions made under<cite data-path="|22A|§5-2">§ 5-2 {“Mandatory contributions by non-hybrid members”} of this subtitle</cite>; and Employer contributions made under<cite data-path="|22A|§5-3">§ 5-3 {“Employer contributions”} of this subtitle</cite>. “Annual additions” includes makeup contributions made under <cite data-path="|22A|§5-5">§ 5-5 {“Makeup contributions after military leave”} of this subtitle</cite> for the limitation year to which the contributions relate (not for the limitation year in which the contributions are made). “Annual additions” does not include rollover contributions made under <cite data-path="|22A|§5-4">§ 5-4 {“Rollover contributions”} of this subtitle</cite>. “Limitation year” means a calendar year. “Section 415 compensation” means wages, within the meaning of IRC § 3401, plus amounts that would be included in wages but for an election under IRC § 125, § 132(f)(4), § 402I(3), § 402(h)(1)(B), § 402(k), or § 457(b), and all other payments of compensation to an employee by a participating employer for which the employer is required to furnish the employee a written statement under IRC § 6041(d), § 6051(a)(3), or § 6052. Section 415 compensation must be determined without regard to any rules under IRC § 3401 that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in IRC § 3401(a)(2)). Section 415 compensation for a limitation year is the Section 415 compensation actually paid or made available in gross income for that limitation year. “Section 415 compensation” includes the following amounts paid after an employee’s severance from employment with a participating employer, if those amounts would have been included in subparagraph (i) of this paragraph had they been paid before severance and if those amounts are paid to the employee before the later of 2½ months after severance or the end of the calendar year in which the severance becomes effective:regular payments made after severance, if:the payments are:compensation for services during the employee’s regular working hours; compensation for services outside the employee’s regular working hours (such as overtime or shift differential); or commissions, bonuses, or other similar payments; and the payments would have been paid to the employee before severance had the employee continued to be employed by the employer; and payments made after severance for accrued and unused bona fide sick, vacation, or other leave, if the employee would have been able to use that leave had the employee continued to be employed by the employer. “Section 415 compensation” for a limitation year does not include compensation in excess of the compensation limit applicable to that limitation year under IRC § 401(a)(17). Notwithstanding any other provision of <cite data-path="|22A">this article</cite>, to the extent required under the Internal Revenue Code, the annual additions that are credited to the account of any member in any limitation year may not exceed the lesser of:$40,000, as adjusted by cost-of-living increases under IRC § 415(d); or 100% of the member’s Section 415 compensation for the limitation year. If, for any limitation year, the annual additions that are credited to the account of a member exceed the limitation set forth in subsection (b) of this section, the City must follow any applicable correction methodology authorized by the Internal Revenue service under the Employee Plans Compliance Resolution System (“EPCRS”) or otherwise. Ord. 14-216

Pursuant to IRC § 401(a)(17) and the regulations adopted under that section, the annual compensation of each member taken into account in determining the amount of contributions under the Retirement Savings Plan may not exceed $200,000, as adjusted by cost-of-living increases under IRC § 415(d). Ord. 14-216