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HomeMy WebLinkAboutORD 80-30 ORDINANCE NO. 17 ENTITLED AN ORDINANCE AMENDING THE COMPENSATION PLAN OF THE CITY OF BEAUMONT; PROVIDING FOR CITY PAYMENT OF THE EMPLOYEE' S TAX UNDER THE FEDERAL INSURANCE CONTRIBUTIONS ACT; PROVIDING AN INCREASE IN THE CITY' S CONTRIBUTION FOR EMPLOYEE DEPENDENT HEALTH CARE INSURANCE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Federal Insurance Contributions Act, 26 U.S.C. § 3121 (a) (6) , and the Social Security Act, 42 U.S.C. § 409 (f) , provides that "wages" upon which the FICA tax is levied do not include payment by an employer of the FICA tax imposed upon an employee; and, WHEREAS, payment by the City of Beaumont of the FICA tax levied upon an employee will result in savings to the City and the employee; and, WHEREAS, the City Council believes that savings to the City under such plan should be shared with the employees; and, WHEREAS, the City Council is of the opinion that the city' s contribution to the employees ' dependent health care insurance should be increased; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That the compensation plan of the City of Beaumont, effective October 1, 1979, is hereby amended by reducing each employees' compensation by the amount of tax levied on his wages under the Federal Insurance Contributions Act; provided, however, that the annual reduction in an employees ' wages shall not be greater than the amount of tax levied against his wages under the Federal Insurance Contributions Act. Section 2. That the City of Beaumont, shall pay on behalf of its employees the tax levied on employees' wages under the Federal Insurance Contributions Act. Section 3. That the City shall contribute the following amounts to the employees ' and dependents' group health insurance pro- gram: Employee - 42. 03 per/ month Employee and One (1) dependent - 93. 00 per/ month Employee and two (2) or more dependents - 103. 22 per/ month Section 4 . That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons. or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 5. That this ordinance shall be effective from the beginning of the calendar quarter commencing April 1, 1980. PASSED BY THE CITY COUNCIL of the City of Beaumont t this the ,� day of �� 1980. Mayor - � �