HomeMy WebLinkAboutResolution - 3353 (3) Return to CaIPERS- Unit 830
Employer code: 0839
Resolution No. 3353
EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the Califomia 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 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 10 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 the following CaIPERS Coverage Group(s):
All Miscellaneous and All Safety Groups
NOW,THEREFORE, BE IT RESOLVED:
I. That the City of San Jacinto 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.
If. That the contributions made by the City of San Jacinto to CaIPERS, although designated as employee
contritxdions, are being paid by the City of San Jacinto in lieu of contributions by the employees who
are members of CaIPERS.
III. 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_
IV. That the City of San Jacinto shall pay to CAPERS the contributions designated as employee contributions
from the same source of funds as used in paying safary, thereby resulting in tax deferral of employee
contributions.
V. 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.
VI.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 payroll deductions when authorized by
CaIPERS for those employees of the above staled Coverage Group(s)who have elected to participate in
this plan.
PASSED AND ADOPTED by the governing body of the City of San Jacinto
this 6th day of january, 2011.
BY LkL i
(Signature of Official)
I I w
ille of Official)
RETURN ADDRESS:
City of San Jacinto
595 S San Jacinto Ave
San Jacinto, CA 92583
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FOR CALPERS USE ONLY
Pre-tax payroll deduction plan effective date:
Approved By: Title:
MEMBER SERVICES DIVISION,Service credit section-Unit 830