36-5. 2.2% Pension Legislation
Commencing with Fiscal Year 2000, the additional pension contributions of teachers as a result of the “2.2% legislation” shall be made on a pre-tax basis pursuant to Section 414(h) of the Internal Revenue Code. For the purposes of Section 414(h) of the Internal Revenue Code, such contributions will be treated as employer contributions, and it is recognized that employees do not have the option to receive such contributions in cash. This agreement is for the purpose of making such additional pension contribution pre-tax for the employee. Contributions will be deducted from employees’ salaries and do not constitute an additional “pick up” under Article 36-4.1.