RES 07091 - Laserfiche WebLink

RESOLUTION NO. 07- 091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON, IMPLEMENTING PROVISIONS OF THE INTERNAL REVENUE CODE (IRC) SECTION 414(h)(2) TO ALLOW EMPLOYEE CONTRIBUTION FOR PUBLIC EMPLOYEES' RETIREMENT SYSTEM SERVICE CREDIT (CONTRIBUTION CODE 14 -PRE-TAX PAYROLL DEDUCTION PLAN) WHEREAS, the Board of Administration of the California Public Employees' Retirement System (CaIPERS) at the April 1996 meeting approved apre-tax payroll deduction plan for service credit purchases under Internal Revenue Code (IRC) section 414(h)(2); and WHEREAS, the City of Pleasanton has the authority to implement the provisions of IRC section 414(h)(2) and has determined that even though implementation is not required by law, the tax benefit offered by this section should be provided to those employees who are members of CaIPERS; and WHEREAS, the City of Pleasanton elects to participate in the pre-tax payroll deduction plan for all employees in the following CaIPERS Coverage Groups: Miscellaneous Plan of the City of Pleasanton Safety Police of the City of Pleasanton Safety Fire of the City of Pleasanton NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: Section 1: That the City of Pleasanton will implement the provisions of IRC section 414(h)(2) by making employee contributions for service credit purchases pursuant to the California State Government Code on behalf of its employees who are members of CaIPERS and who have made a binding irrevocable election to participate in the pre-tax payroll deduction plan. "Employee contributions" shall mean those contributions reported to CaIPERS which are deducted from the salary of employees and are credited to individual employee accounts for service credit purchases, thereby resulting in tax deferral of employee contributions. Section 2: That the contributions made by the City of Pleasanton to CaIPERS, although designated as employee contributions, are being paid by the City of Pleasanton in lieu of contributions by the employees who are members of CaIPERS. Section 3: That the employees shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the City of Pleasanton to CaIPERS. Section 4: That the City of Pleasanton shall pay to CaIPERS the contributions designated as employee contributions from the same source of funds as used in paying salary, thereby resulting in tax deferral of employee contributions. Section 5: That the effective date for commencement of the pre-tax payroll deduction plan cannot be any earlier than the date the completed resolution is received and approved by CaIPERS.