An employee's salary or earnings shall be the compensation paid by
the Town to an employee as shown on the W-2 Form submitted to the
Internal Revenue Service and shall be determined without regard to
any reductions pursuant to Section 125, 414(h)(2) or 457 of the Internal
Revenue Code of 1986, as amended. Such contributions shall be deducted
from each employee's pay by the Town and shall be paid immediately
by it to the plan. An employee's obligation to contribute to the plan
shall cease after he has contributed for a period of 30 years or has
accumulated 30 years of credited service.
Town assumption of employee contributions. Pursuant to the provisions of Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, the Town shall assume and pay the employee contributions required by Subsection A above which would otherwise be payable by employees who are employed by the Town in an administrative capacity in the general government portion of the budget and whose employment is not subject to the terms of a collective bargaining agreement with respect to salary or earnings on account of service on and after August 1, 1991. Employee contributions so paid by the Town shall be paid from the same source of funds used for the payment of compensation to employees, and a deduction shall be made from each employee's salary or earnings equal to the amount of the employee's contribution so paid by the Town.
Accounting. Employee contributions paid by the Town shall be accounted for separately from employee contributions not so paid but shall, nevertheless, be treated as employee contributions for purposes of Article VI, § 51-13, hereof. In no case shall an employee for whom contributions are paid by the Town pursuant to this Subsection A(2) and (3)have the option of receiving such amounts in salary or earnings from the Town.