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ADMINISTRATIVE ORDER NO. 43-04-01 of the City Manager City of Eugene, Oregon ESTABLISHING PROCEDURES FOR MAYOR AND CITY COUNCILOR CONTRIBUTIONS TO THE OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM ("PERS") AND THE OREGON PUBLIC SERVICE RETIREMENT PLAN ("OPSRP"); AND REPEALING ADMINISTRATIVE ORDER NO. 43-01-01. The City Manager of the City of Eugene f'mds that: A. Chapter VI, Section 18 of the Eugene Charter of 2002 (the successor to the same section of the Charter. of 1976 as amended) provides that commencing July 1, 2001 the Mayor is to receive a stipend of $1,500 per month and the City Councilors a stipend of $1,000 per month, with the amounts to be adjusted at the beginning of each fiscal year thereafter, based on the Consumer Price Index for the Portland, Oregon area, or its successor. That section also provides that the Mayor and City Councilors ("elected officials") shall receive no fringe benefits except those required by state law. B. By receiving the stipend, the elected officials in office on July 1, 2001 were eligible under ORS 238.015 to participate in PERS. Effective August 29, 2003, membership in PERS was no longer available to the City's elected officials who had not elected to participate in PERS prior to that date. However, under ORS 238A. 100, the elected officials became eligible to participate in OPSRP on that date; they may also elect not to become a member. Members of PERS or OPSRP, including elected officials, are required to pay a mandatory 6% employee contribution by way of a salary reduction. The contribution is treated as an employer contribution under Section 414(h)(2) of the Internal Revenue Code. C. ORS 238.205 and 238A.335 allow, but do not require, PERS and OPSRP participating employers to assume their employees' contributions. The City has no policy or written agreement to assume the PERS or OPSRP contributions of the elected officials. D. The elected officials do not have the option of receiving the salary payment and paying the PERS or OPSRP employee contribution directly. E. If they choose to participate, the elected officials' reported salary on their W-2 forms for tax purposes will be reduced by the amount of the officials' contribution. F. Because of the changes in the statutes regulating membership in PERS and OPSRP, Administrative Order No. 43-01-01 should be repealed and procedures established as provided herein. Administrative Order - 1 CSDocuments and Settings\cepnmldXdMy Documents~PERS~PERS OPSRP Admin Order 43 04 01.DOC