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HomeMy WebLinkAboutResolution 00-013 N.C.S. 01/18/2000 resolution ~To. 00-is N.C.S. of the City of Petaluma, California 1 2 3 IlVIPLEIVIENTING EIVIPLO~'ER PICICIJP PIZL-TAX PAYROLL I)EDITCTIOI~T 4 PLAN .FOIL SERVICE CREi)IT PURCHASES 5 (PERS CONTRIBUTION CODE 14) 6 7 8 9 WHEREAS, the Board of Administration of the California Public Employees' 10 Retirement System (CaIPERS) at the April 1996 meeting approved apre-tax payroll 11 deduction plan for service credit purchases under Internal Revenue Code (IRC) section 12 414(h)(2); and 13 14 WHEREAS, the City of Petaluma, CA has the authority to implement the provisions of 15 IRC section 414(h)(2) and has determined that even though implementation is not 16 required by law, the tax benefit offered by this section should be provided to those 17 employees who are members of CaIPERS; and 18 19 WHEREAS, the City of Petaluma, CA etects to participate in the pre-tax payroll 20 deduction plan for all. employees in the following CaIPERS coverage group(s): 21 22 Miscellaneous Group #70001 23 Fire/SMT Group #74002 24 Police Group #75002 25 26 NOW, THEREFORE, BE IT RESOLVED: 27 28 I. That the City of Petaluma, CA will implement the provisions of IRC section 29 414(h)(2) by making employee contributions for service credit purchases pursuant 30 to the California State Government Code on behalf of its employees who are 31 members of Ca1PERS and who have made a binding irrevocable election to 32 participate in the pre-tax payroll deduction plan. "Employee contributions" shall 33 mean those contributions reported to CaIPERS which are deducted from the 34 salary of employees and are credited to individual employee accounts for service 3 5 credit purchases, thereby resulting in tax deferral of employee contributions. 36 37 II. That the contributions made by the City of Petaluma, CA to Ca1PERS, although 38 designated as employee contributions, are being paid by the City of Petaluma, CA 39 in lieu of contributions by the employees who are members of CaIPERS. 40 Resolution No. 00-13 x.c.s. Page 1 of 2 1 III. That the employees shall not have the option of choosing to receive the 2 contributed amounts directly instead of having them paid by the City of Petaluma, 3 CA to CaIPERS. 4 5 IV. That the City of Petaluma, CA shall pay to CaIPERS the contributions designated 6 as employee contributions from the same source of funds as used in paying salary, 7 thereby resulting in tax deferral of employee contributions. 8 9 V. That the effective date for commencement of the pre-tax payroll deduction plan 10 cannot be any earlier than July 1, 1996, or the date the completed resolution is 11 received and approved in Ca1PERS, whichever is later. 12 13 VI. That the governing body of the City of Petaluma, CA shall participate in and 14 adhere to requirements and restrictions of the pre-tax payroll deduction plan by 15 reporting pre-tax payroll deductions when authorized by Ca1PERS for those 16 employees of the above stated Coverage Group(s) who have elected to participate 17 in this plan. 18 19 20 21 22 Return Address: 23 24 City of Petaluma 25 Department of Human Resources 26 P.O. Box 61 27 Petaluma, CA, CA 94953-0061 28 29 G:cc~Resolution.doc Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a (Regular) X~cat#?~xc~(;~~~~ad) meeting - form ~ on the .-..18.111.....-..... day of ..........J.aAll8l=yr.20.~Il ...................}01P0......-., by the - following vote r Cit Attorney AYES: Healy, Ke11er,~Hamilton, Maguire, Vice Mayor Torliatt, Mayor Thompson . NOES: None' ABSENT: Lad2r-Thompson AZTEST: - 'City Clerk ~ Mayor _ Council File......_..._ c;n io-HS ~ ,z~a. N~~......O.O-.1.3........... N.c.s. Page 2 Of 2