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 - � �