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14 <br /> <br />Deferred Compensation: <br /> <br />In lieu of FICA contributions, the City will contribute to each bargaining unit member in addition to that employee’s <br />monthly salary, deferred earned compensation each month to a City-sponsored Section 457 Deferred Compensation <br />Program. With the exceptions of Division Chiefs, the City’s monthly contribution to the Deferred Compensation <br />Program will be 6.2% of a First-Class Firefighter’s base wage. Division Chiefs will receive a monthly contribution to <br />the Deferred Compensation Program will be 6.2% of a Division Chiefs base wage. <br /> <br />This deferred earned compensation must be deposited to a City-sponsored Section 457 pre-tax account and shall be <br />the employee’s responsibility to monitor their year-to-date combined 457 Deferred Compensation Program <br />contributions, so as not to exceed the applicable IRS annual contribution limit. Should an employee exceed the IRS <br />annual contribution maximum prior to the final contribution in the last pay period of the year, the employee will <br />forfeit any City contribution that exceeds the allowable IRS contribution maximum prior to year end. <br /> <br />New employees will begin receiving the pre-tax deferred earned compensation in the pay period following enrollment <br />process completion. <br /> <br />The deferred compensation is separate pay and is not part of the base monthly salary as codified in the City of Everett <br />Basic Salary Schedule Ordinance. The provision is subject to the City’s deferred compensation rules and regulations <br />adopted by City Council and IRS regulations, and the computation of retirement contributions and pension benefits <br />shall be governed by applicable state law. Per RCW 41.26.030, employees in a leave without pay status will not be <br />considered as receiving basic salary and will not be eligible for a contribution to their Section 457 deferred <br />contribution program. The parties agree that said contribution will not count toward the Holiday Pay article’s annual <br />cash out. <br /> <br />Payroll Administration: <br /> <br />Employees shall receive pay for the hours worked in a pay period. The effective date of this change will be the <br />pay period following ratification of this contract. <br />