[Amended 9-2-2008 by Ord. No. 1559]
As a condition of participation in the plan, each employee shall
contribute to the plan by payroll deduction. Each participant shall
contribute an amount equal to 3.8% of the participant's annual
compensation. Each employee must have executed the appropriate documents
authorizing the employer to deduct the contributions from the pay
of the employee. Such contributions shall be required until such time
as the employer, consistent with any provisions of applicable law,
shall increase, reduce or eliminate the requirement. A participant
who is on an authorized leave of absence shall have the obligation
to contribute hereunder waived during the period of such authorized
leave of absence.
The employer shall contribute to the plan the amount determined by the plan's actuary and certified by the chief administrative officer as the amount which is necessary to adequately fund the benefits hereunder in accordance with the requirements of the Act, as provided in §
46-56. The contributions of the employer for a given year may be reduced by other contributions to the plan, including but not limited to employee contributions, state aid contributions or gifts.
Payments of general municipal pension system state aid, or any
other amount of state aid payments in accordance with the Act, which
are received by the employer and deposited into the pension fund shall
be used to the extent permitted pursuant to the Act to reduce the
unfunded liability or, after such liability has been funded, to apply
against the annual obligation of the employer for future service costs
or, to the extent that the payment may be in excess of such obligation,
to reduce employee contributions hereunder.
To the extent permitted by law, the Plan Administrator may accept
gifts, outright or in trust, for deposit into the pension fund. The
application of such gifts shall be governed by the rules of the plan
and such directions prescribed by the donor as are not inconsistent
with the rules of the plan and applicable law. Such gifts shall be
applied in the same manner as state aid contributions.
At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, except that contributions made by the employer may be returned to the employer if the contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution, or the plan is terminated, as provided in Article
XI.