HomeMy WebLinkAbout09_037 CC ResolutionRESOLUTION NO. 09-37
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A RESOLUTION OF THE CITY
COUNCIL
OF THE CITY
OF TEMECULA APPROVING
THE
EMPLOYER
PICKUP CALPERS PRE-TAX
PAYROLL
DEDUCTION
PLAN FOR SERVICE
CREDIT
PURCHASES
(CONTRIBUTION CODE 14)
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE
AS FOLLOWS:
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 Temecula 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 Temecula elects to participate in the pre-tax payroll
deduction plan for all employees in the following CaIPERS Coverage Groups(s):
All Local Miscellaneous Coverage Group(s)
NOW, THEREFORE, BE IT RESOLVED:
A. That the City of Temecula 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.
B. That the contributions made by the City of Temecula to CaIPERS,
although designated as employee contributions, are being paid by the City of Temecula
in lieu of contributions by the employees who are members of CAIPERS.
C. 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 Temecula.
' D. That the City of Temecula 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 contribution.
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' E. 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 CalPERS.
F. That the governing body of the City of Temecula 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 of the above stated
Coverage Groups(s) who have elected to participate in this plan.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 28th day of April, 2009.
Maryann Edwards, Mayor
ATTEST:. -
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[SEAL]
' STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
ss .
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. 09-37 was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 28th day of April, 2009, by the
following vote:
AYES:
5
COUNCIL MEMBERS:
Comerchero, Naggar, Roberts, Washington,
Edwards
NOES:
0
COUNCIL MEMBERS:
None
ABSENT:
0
COUNCIL MEMBERS:
None
ABSTAIN:
0
COUNCIL MEMBERS:
None
i . Jones, MMC
Susan
City Clerk
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