Delaware Code Title 29 Sec. 5594 – Employer pickup of member contributions
(a) Each participating employer, pursuant to the provisions of § 414(h)(2) of the United States Internal Revenue Code [26 U.S.C. § 414(h)(2)], shall pick up and pay the contributions which would otherwise be payable by the members under § 5591 of this title. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the member’s compensation.
Terms Used In Delaware Code Title 29 Sec. 5594
- Compensation: shall mean all salary, wages and fees, including overtime payments and special payments for extra duties, payable to a member for service credited under paragraph (4)a. See Delaware Code Title 29 Sec. 5551
- Employee: shall mean :
- Employer: shall mean a county or municipality, including state governmental subdivisions, Delaware State Housing Authority, volunteer ambulance companies, and volunteer fire companies, in Delaware which has affiliated with the Fund established by Chapter 55 of this title as provided in § 5555 of this title. See Delaware Code Title 29 Sec. 5551
- Member: shall mean a person who is an employee on or after the date the employer affiliates with the Fund. See Delaware Code Title 29 Sec. 5551
- United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
(b) Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member’s compensation equal to the amount of the member’s contributions picked up by the employer. This deduction, however, shall not reduce the member’s compensation for purposes of computing benefits under the retirement system pursuant to this chapter.
(c) Member contributions shall be credited to a separate account within the member’s individual account so that the amount contributed prior to the effective date for the pickup of member contributions may be distinguished from the amounts contributed on or after the effective date.
(d) The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system.