14
butions on the first $2400 and from
members affected by the amendment
then on the employer will not be re
are those who receive more than $2400
quired to match his contributions dur
per fiscal year and have elected to
limit their contributions to $200 per ing the balance of the year.
While this breaking of a monthly
month. As an example, a member re
payroll sometime late in the fiscal year
ceiving $3600 per year payable in 12
instalments of $300 each, who limited may seem a little inconvenient to the
his contributions to $200 per month clerk o f the district or the payroll de
will now be required to contribute on partment of the agency, it must be
his entire salary of $300 per month remembered that under the old system
the clerk or paymaster was required
during the first 8 months of the year.
to break down every payroll as be
A t this time, he will have contributed
on $2400 of earnings and having limr _ tween $200 and $225, since the em
ited his contributions to $200 per ployer was only ' permitted to match
month will not be required to make the first $200 per month. The amend
ment will operate to the advantage
any contributions during the last four
months of the fiscal year. A member of a member receiving more than $200
receiving $2400 per year of less is not per month who may reach retirement
affected at all since either under the age during the fiscal year. A member
who receives as much as $2400 during
original act or the act as amended,
the first eight or nine months of the
the member would be required to pay
on all of his salary each month. Like fiscal year and then is eligible to re
tire will have been matched on the
wise the members receiving more than
$2400 per year who has elected to con entire $2400 permitted which will be
tribute on all of his salary is not a f reflected in a little higher pension if
he retires at that time. Under the old
fected since he would have contributed
system he would have lost the em
each month on all of his salary.
ployer matching contributions during
Since the employer is required to
the last three or four months of the
match the employee’s contributions on
only the first $2400 per fiscal year fiscal year. While those members re
of salary earned, in every case when ceiving, more than $2400 per year and
who have elected to Emit their con
the employee has contributed on $2400
tributions to $200 per month will find
in the fiscal year, will require a break
that larger deductions will be made
ing of the monthly payroll in order
from
their pay checks u n tilth e $2400
that the employer does not match the
mark has been reached, by the same
employee’s contributions in excess of
token from that point on during the
$2400 during the fiscal year.
balance o f the fiscal year, no deduc
For example, let us assume that a tion whatever for the retirement fund
member receives $225 per month and
will be made from their pay checks.
has elected to contribute at the rate
The same difficulties arose in the
of 5 percent on all of his salary. This
case of state employees or employes of
means, of course, that he expects to
political sub-divisions employed oh an
contribute 5 percent of his annual sal hourly basis, who are paid on a weekly,
ary of $2700. During the first 10
bi-monthly or some other basis than
months of the year he will have con
once each Calendar month.
tributed on $2250 and the; employer
For example, an employe who has
has matched his contributions during
limited his contributions to $200 per
- this period. A t the end of the eleventh
month he will have contributed on month earns, and is paid $106.00 for
the first half of the. month. He was
salary in the amount of $2475 but in
required to contribute on the entire
this month the employer will match
$106.00 and tlie employer was re
his Contributions on only $150 of his
$225 salary. Having done this the em quired to match his contribution since
at that point his monthly earnings
ployer will have matched his contri