(a) Each   cC overed police employees shall be assessed and required to pay into the fund 3.5% of their compensation.   fifty (50) per cent of the excess of the rate of contributions for the base plan benefits over twenty-two and forty-four hundredths (22.44) per cent of his applicable rate of pay as determined by the annual actuarial report required by this section. In addition, each covered police employee shall be assessed and required to pay into the fund all the cost of the enhanced plan benefits (as defined in section 18-41) in excess of the city contribution toward the enhanced plan benefits of one and six-tenths (1.6) per cent of the base of active payroll. (This amount is to pay for the 1996 enhancement of benefits and is subject to annual adjustments.) The calculation of the respective costs of providing and maintaining these benefits shall be calculated annually by an actuary chosen by the administrator upon the recommendation of the PRB, and shall be reported to the city council by July 1 of each year. The cost of enhanced plan benefits shall be calculated by subtracting the cost of the actuarial determined rate of the base plan benefits from the cost of the actuarial determined rate of the enhanced plan benefits.

    (b) The contributions of covered employees shall be deducted from the biweekly compensation paid to each by the administrator and placed in the PRF. Deduction of contributions shall be a term and condition of employment; acceptance and continuance in employment shall be deemed to be the assent of an employee to deductions.

    (c) Nothing herein shall be deemed to prevent or prohibit the payment by covered employees of the police department of the Social Security Tax under the Federal Old-Age and Survivors Insurance Act. Such sums shall be paid by the police employee and collected by the city as provided by law.

    (d) The city shall pick up employee contributions required of police employees for all compensation earned after the effective date of this provision. The contributions so picked-up shall be treated as employer contributions in determining tax treatment under the code. The city shall pick up these contributions from funds established and available, which funds would otherwise have been designated as employee contributions and paid to the retirement fund. Employee contributions picked-up by the city pursuant to this provision shall be treated for all other purposes, in the same manner and to the same extent, as employee contributions made prior to the effective date of this provision.

The effective date of this provision shall be the first day of the first pay period following at least thirty (30) days after the city has received notification from the Internal Revenue Service that pursuant to section 414(h) of the code, these employee contributions so picked up shall not be included in gross income for tax purposes until such time as they are distributed by refund or benefit payment.

    (e) Exclusive benefit; mistake of fact. Except as otherwise provided in this plan, the trust fund shall be retained for the exclusive benefit of covered employees and their beneficiaries, shall be used to pay benefits to such persons, to pay administrative expenses to the extent not paid by the city, and shall not revert to or inure to the benefit of the city. The trustee, shall return to the city the amount of the city's contribution made by mistake of fact.

(Code 1964, § 9.1770; Ord. No. 9961, § 1, 10-3-88; Ord. No. 12868, § 1, 2-4-91; Ord. No. 13698 § 1, 6-7-93; Ord. No. 14982, § 1, 9-16-96; Ord. No. 15072, § 1, 12-2-96)