HomeMy WebLinkAboutResolution - 3353 STATE OF CALIFORNIA ) RESOLUTION NO. 3353
COUNTY OF RIVERSIDE)ss
�. CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA, AUTHORIZING A CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM PRE-TAX PAYROLL
DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the City of San Jacinto has the authority to implement the provisions
of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (CaIPERS) at the April 1996 meeting approved a pre-tax payroll
deduction plan for service credit purchases under Internal Revenue Code (IRC) section
414 (h)(2): and
WHEREAS, the City of San Jacinto, CaIPERS Employer Code 0839, has
determined that even though implementation of the provisions of section 414(h)(2) IRC
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 San Jacinto elects to participate in the pre-tax payroll
deduction plan for all employees in all Miscellaneous and Safety Coverage Groups.
NOW, THEREFORE, BE IT RESOLVED:
Section 1. That the City of San Jacinto will implement the provisions of IRC
section 414(h)(2) by matting employee contributions for service credit contributions
pursuant to California State Government Code section 20691 to the California Public
Employees' Retirement System on behalf of its employees who are members of
CaIPERS and who have made a binding irrevocable election to participate in the pre-tax
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, thereby resulting in tax deferral of employee
contributions.
Section 2. That the contributions made by the City of San Jacinto to CaIPERS,
although designated as employee contributions, are being paid by the City of San
Jacinto 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 San Jacinto
to CaIPERS.
Section 4. That the City of San Jacinto shall pay to CalPERS the contribution
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 CAPERS.
Section 6. That the governing body of the City of San Jacinto shall participate
in and adhere to requirements and restrictions of the pre-tax payroll deduction plan by
reporting pre-tax deductions when authorized by CalPERS for those employees of the
above stated Coverage Group(s) who have elected to participate in this plan.
PASSED, APPROVED AND ADOPTED this 6sh day of January, 2011, by the
following vote:
Ayes: Bartel, Di Memmo, Kotyuk, Ledezma, Miller
Nays: None
Absent: None
Abstain: None
City of San Jacinto
"IA
Scott Miller, Mayor
Attest:
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ll C At.L1
Richard Miller, City Clerk
APPROVED A5 TO FORM:
Best, Best, and Krieger, LLP
C� 8. 1
Jeff re BalEing'er, City Attorney
FOR CALPERS USE ONLY
Pre-tax payroll deduction plan effective date:
Approved By:
Title:
MEMBER SERVICES DIVISION, Service credit section-Unit 830