Ord 1619 - Amending Chapter 20 of the Code Relating to the Contributions to the Town Retirement Plan and the Determination and Payment of Administrative Costs

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ORDINANCE N0. ,1619 " AN ORDINANCE AMENDING CHAPTER 20 OF THE TOWN CODE RELATING TO CONTRIBUTIONS TO THE TOWN RETIREMENT PLAN AND THE DETERMINATION AND PAYMENT OF ADMINISTRATIVE COSTS The Town Council of the Town of Los Gatos hereby ORDAINS: Section 1. f ollows: Section 20 -6 of the Los Gatos Town Code is amended to read as Sec. 20-6. Employee contributions. (a) Each qualified employee shall agree that, commencing with the date upon which he becomes a member, an amount equal to five percent of his compensation, before any deductions, as the same may become payable, shall not be paid to him by the town; provided, that: (1) Such amount so withheld shall represent the contribution of the member to the trust fund. (2) By making such deductions, the town shall reimburse itself to that extent for advances made by it for the account of the member. (3) Upon the termination of employment, such member shall repay to the town any such advances for which the town may not have been reimbursed. Notwithstanding any provision of section 20 -10, no terminated employee, nor any beneficiary, shall be entitled to any sum whatsoever until the town shall have been reimbursed for any such advances made on behalf of such employee. (b) Each member may contribute up to an additional ten per cent of his monthly compensation, before any deductions, into the trust. Such additional voluntary contribution may be in amounts from one per to ten per cent, but not fractional amounts thereof. A member may terminate his additional voluntary contribution by notifying the retirement board in writing. In the absence of terminating his voluntary contribution, a member shall not change the percentage rate of his voluntary contribution, unless a period of six months has elapsed since such member had previously changed his rate of additional voluntary contribution. Such additional voluntary contributions will be treated exactly like all other funds contributed by the member. However, these additional voluntary contributions will not increase the participant's share in the town's contribution.