HomeMy WebLinkAbout14-007 - Resolutions RESOLUTION NO. FD 14-007
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT,
PROVIDING FOR THE PRE-TAX TREATMENT OF COST-
SHARING CONTRIBUTIONS TO PERS UNDER SECTION
414(H)(2) OF THE INTERNAL REVENUE CODE
WHEREAS, the Rancho Cucamonga Fire Protection District (DISTRICT), provides
retirement benefits to eligible employees under the California Public Employees' Retirement
System (PERS);
WHEREAS, benefits under PERS are funded by "member contributions" and "employer
contributions," at rates determined by PERS in accordance with the laws governing PERS and
with the agreement governing the DISTRICT's participation in PERS;
WHEREAS, the DISTRICT may, to the extent permitted by the PERS laws and the
DISTRICT's memorandums of understanding or similar agreements with employees, deduct
employees' compensation to pay member contributions or employer contributions, or both, to
PERS;
WHEREAS, the DISTRICT previously adopted a resolution providing, in accordance with
section 414(h)(2) of the Internal Revenue Code (Code), for the "pick up" of amounts deducted
from employees' compensation to pay member contributions to PERS, in order to qualify the
contributions as pre-tax for income-tax purposes; and
WHEREAS, the DISTRICT wishes to adopt this resolution in order to (1) designate
amounts deducted from employees' compensation to pay employer contributions to PERS
("cost-sharing contributions") as employee contributions, and (2) provide for the "pick up" of
cost-sharing contributions in accordance with section 414(h)(2) of the Code, in order to qualify
the contributions as pre-tax for income-tax purposes.
NOW, THEREFORE, THE RANCHO CUCAMONGA FIRE PROTECTION DISRTICT
HEREBY RESOLVES THAT:
SECTION 1. All cost-sharing contributions made by DISTRICT employees are hereby
designated as employee contributions.
SECTION 2. The DISTRICT hereby picks up all cost-sharing contributions in accordance
with section 414(h)(2) of the Code, so that the contributions, even though designated as
employee contributions and deducted from employees' compensation, will be treated as
employer contributions for tax purposes.
SECTION 3. Employees will not have the option of choosing, directly or indirectly, to
receive the contributions instead of having them paid by the DISTRICT to PERS.
SECTION 4. The DISTRICT will pay to PERS the contributions designated as employee
contributions from the same source of funds as used in paying salary.
Resolution No. FD 14-007 - Page 1 of 3
SECTION 5. Contributions picked up under this resolution will be tax deferred to the
extent provided under the Code, Treasury Regulations, and other guidance issued thereunder
as described in a legal opinion on file with the Secretary.
SECTION 6. This resolution applies to all contributions made on or after July 1, 2014.
SECTION 7. Nothing in this resolution affects or governs PERS's methods for
characterizing or accounting for amounts deducted from employees' compensation for
contribution to PERS. Those methods are governed solely by California law and PERS's
policies.
Resolution No. FD 14-007 - Page 2 of 3
PASSED, APPROVED, AND ADOPTED this 16t1 day of April 2014.
AYES: Alexander, Michael, Spagnolo, Steinorth, Williams
NOES: None
ABSENT: None
ABSTAINED: None
a t i
ennis Michael, P esident
ATTEST:
ice C. Reynolds, S retary
I, JANICE C. REYNOLDS, SECRETARY of the Rancho Cucamonga Fire
Protection District, do hereby certify that the foregoing Resolution was duly passed, approved,
and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a
Regular Meeting of said Board held on the 16th day of April 2014.
Executed this 1711 day of April 2014 at Rancho Cucamonga, California.
dO
nice C. Reynolds,(Secretary
Resolution No. FD 14-007 - Page 3 of 3