> Pick-Up Plan Resolutions Due September 30

Pick-Up Plan Resolutions Due September 30

VRS recently mailed a letter to local governments and school boards, outlining the requirements for employer pick-up plans, including sample resolutions. Employers must return resolutions approved by their governing boards to VRS no later than September 30, 2008.

Important: The date on the resolution you send to VRS should be the date your governing body passes the affirming resolution.

VRS is conducting a review of pick-up plan resolutions to ensure that they meet Internal Revenue Services (IRS) requirements. IRS Ruling 2006-43 requires employers to have formal authorization for pick-up plans, generally in the form of resolutions, by January 1, 2009. Pick-up plans allow employers to pick up or pay the member contribution rate of 5 percent and to allow purchase of prior service on a pre-tax basis.