Pick-up of required employee contributions.
El Paso City Code § 2.64.500
in effect2.64.500 - Pick-up of required employee contributions.
A. As provided by Section 414(h)(2), of the Internal Revenue Code of 1986 (26 U.S.C. Section 414(h)(2)), the city shall pick-up and pay an employee's required contribution under the provisions of this chapter. The city's pick-up of employee contributions shall take effect on the first full pay period following May 1, 2007. Although the contributions so picked-up are designated as employee contributions, the contributions shall be treated as contributions being paid by the city in lieu of contributions by the employee for determining tax liability under the Internal Revenue Code of 1986 and are not included in the gross income of the employee or the employee's beneficiary. The employee may not choose to receive the picked-up contributions directly, and the city must pay the picked-up contributions to the fund.
B. Employee contributions picked-up under subsection A of this section are included in the compensation of the employee for purposes of determining benefits and contributions under the fund.
C. The city shall pay the employee contributions from the same source of funds used in paying compensation to the employee by reducing the gross compensation of the employee.
D. The city's pick-up of contributions is limited only to an employee's required contribution and is not applicable to any permissive purchase of pension service credit.
(Ord. 16619 § 14, 2007)
Source: City of El Paso, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/el_paso/codes/code_of_ordinances?nodeId=TIT2ADPE_CH2.64CIEMPEFU_2.64.500PIREEMCOFetched: 10/28/2026