Deferred Compensation Program

In accordance with § 8308, the employer shall automatically enroll members and deduct and credit Defined Benefit 1.75 Plan member contributions under the Deferred Compensation Program in an amount equal to one percent (1%) of the member’s base salary. However, notwithstanding that the contributions by Defined Benefit 1.75 Plan members are designated and shall be administered as member contributions under § 8308, such contributions shall be on a mandatory basis deducted from the member’s base salary and paid by the employer in lieu of contributions by the member, and shall constitute pre-tax “pick-up” employer contributions for purposes of determining the income tax treatment of such contributions under Section 414(h) of the United States Internal Revenue Code.