A. 
Percent of contribution; deduction from pay.
(1) 
During the period from October 1, 1956, through June 30, 1962, each employee shall contribute to the plan 3% of his salary or earnings.
(2) 
During the period from June 1, 1962, through June 30, 1977, each employee shall contribute to the plan 4 1/2% of his salary or earnings.
(3) 
During the period from July 1, 1977, through June 30, 1990, each employee shall contribute to the plan 5% of his salary or earnings.
(4) 
During the period from July 1, 1990, through June 30, 1993, each employee shall contribute to the plan 5 1/2% of his salary or earnings.
(5) 
During the period from July 1, 1993, through June 30, 1995, each employee shall contribute to the plan 5 3/4% of his salary or earnings.
(6) 
Commencing July 1, 1995, and continuing thereafter, each employee shall contribute to the plan 6% of his salary or earnings.
B. 
An employee's salary or earnings shall be the compensation paid by the Library 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 Library and shall be paid immediately by it to the plan.
C. 
An employee's obligation to contribute to the plan shall cease after he has contributed for a period of 32.5 years or has accumulated 32.5 years of credited service.
D. 
Pursuant to the provisions of Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, the Library shall assume and pay the employee contributions required by Subsection A above which would otherwise be payable by employees. Commencing April 13, 2001, all employee contributions required by Subsection A above will be subject to the provisions of Section 414(h)(2) of the Internal Revenue Code of 1986. Employee contributions so paid by the Library 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.
During the period commencing on October 1, 1956, and continuing thereafter, the Library shall annually contribute an amount based on an annual actuarial survey.