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.
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.
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.