HomeMy WebLinkAbout04-155 - Resolutions RESOLUTION NO. 04-155
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING THE
IMPLEMENTATION OF THE PROVISIONS OF INTERNAL
REVENUE CODE SECTION 414(h)(2) AND ALLOWING CITY
EMPLOYEES TO PARTICIPATE IN THE PRE-TAX PAYROLL
DEDUCTION PLAN FOR THE PURPOSE OF PUCHASING
CaIPERS SERVICE CREDITS
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 Rancho Cucamonga 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 Rancho Cucamonga elects to participate in the pre-tax
payroll deduction plan for all miscellaneous coverage groups.
NOW, THEREFORE, BE IT RESOLVED:
1. That the City of Rancho Cucamonga (City)will implement the provisions of IRC
section 414(h)(2)by making employee contributions forservice 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.
2. That the contributions made by the City to CaIPERS, although designated as
employee contributions,are being paid by the City in lieu of contributions by the
employees who are members of CaIPERS.
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 to
CaIPERS.
4. That the City 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.
5. That the effective date for commencement of the pr6t-tax payroll deduction plan
cannot be any earlier than July 1, 1996, or the date the completed resolution is
received and approved in CaIPERS, whichever is later.
Resolution No. 04-155
Page 2 of 2
6. That the City Council of the City 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 CalPERS for those employees who have
elected to participate in this plan.
PASSED, APPROVED, AND ADOPTED this 19'h day of May 2004.
AYES: Alexander, Gutierrez, Howdyshell, Williams
NOES: None
ABSENT: Kurth
ABSTAINED: None
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William J. Alexa er, Mayor
ATTEST:
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Del5ra J. Adams,tyC, City Clerk
I, DEBRA J.ADAMS,CIN CLERK of the City of Rancho Cucamonga,California,do
hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City
Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held
on the 19th day of May 2004.
Executed this 20'h day of May 2004, at Rancho Cucamonga, California.
Debra J. Adam , City Clerk