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<br />June 22.2010 <br /> <br />Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst <br />Nays: Holley <br /> <br />10 - 314 - Adoption of a resolution affirming that any person who becomes a member of <br />the Virginia Retirement System (VRS) on or after July 1, 2010 as a result of <br />employment by the City of Portsmouth shall be required to pay the employee portion of <br />member contributions to the VRS. Vision Principle: Pride of Past, Promise of Future. <br /> <br />Background: <br />. On September 9, 2008, the City Council adopted a resolution affirming <br />authorization for the City of Portsmouth to pick-up the employee's contribution to the <br />Virginia Retirement System (R-08-33). <br />. In the 2010 session, the Virginia General Assembly passed legislation creating a <br />separate VRS retirement plan for employees hired on or after July 1, 2010. The <br />legislation amended VA Code S 51.1-144 to provide that employees in this new <br />retirement plan will pay their five percent member contribution. <br />. On or after July 1, 2010, persons who become members of VRS shall be <br />required to pay member contributions on a salary reduction basis in accordance with S <br />414(h) of the Internal Revenue Code in the amount of five percent of creditable <br />compensation if the person is a member covered by the defined benefit plan. <br /> <br />Discussion: <br />. Through adoption of this resolution, the City reaffirms Resolution R-08-33 for any <br />City employee who becomes a VRS member prior to July 1, 2010. <br />. Through adoption of this resolution, the City hereby affirms that any City employee <br />who is a "person who becomes a [VRS] member on or after July 1, 2010" shall be <br />required to pay their five percent member contributions on a salary reduction basis to <br />VRS. <br /> <br />Financial Impact: <br />. There will be a financial savings for the City as a result of new VRS members <br />hired on or after July 1, 2010. <br /> <br />Staff Recommends: <br />. Adoption of the resolution. Vision Principle: Pride of Past, Promise of Future. <br /> <br />Next Steps Following Council Action: <br />. If adopted by City Council, resolution will be submitted to VRS. <br /> <br />1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, spoke in opposition to this item. <br /> <br />Motion by Ms. Psi mas, and seconded by Mr. Whitehurst, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />"RESOLUTION AFFIRMING THAT ANY PERSON WHO BECOMES A MEMBER OF <br />THE VIRGINIA RETIREMENT SYSTEM (VRS) ON OR AFTER JULY 1, 2010 AS A <br />RESULT OF EMPLOYMENT BY THE CITY OF PORTSMOUTH SHALL BE <br />REQUIRED TO PAY THE EMPLOYEE PORTION OF MEMBER CONTRIBUTIONS TO <br />TH E VRS. <br /> <br />WHEREAS, the City of Portsmouth by Resolution 84-122, adopted November <br />20, 1984 and effective December 1, 1984, authorized and directed the City Manager to <br />include in all future operating budgets "sums sufficient to defray all costs associated <br />with the [City] employees' membership in the Virginia Supplemental Retirement <br />System;" and <br /> <br />WHEREAS, again by Resolution R-08-33, adopted on September 9, 2008, the <br />City of Portsmouth reaffirmed its intention to pick up or assume the responsibility for <br />payment of VRS-required member contributions for City employees who are members <br />of the Virginia Retirement System; and <br />