HomeMy WebLinkAbout96-110 CC Resolution RESOLUTION NO. 96-110
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO
PARTICIPATE IN THE CALPERS PRE-TAX PAYROLL DEDUCTION PLAN FOR
SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14).
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE,
AND ORDER AS FOLLOWS:
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (CalPERS) 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 CalPERS; and
WHEREAS, the City of Temecula elects to participate in the pre-tax payroll deduction
plan for all employees in the following CalPERS coverage group:
(Membership Coverage Group)
70001
NOW, THEREFORE, BE IT RESOLVED, that
Section 1: The City Council approve 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 CalPERS 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 CalPERS 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..
Section 2. That the contributions made by the City of Temecula to CalPERS,
although designated as employee contributions, are being paid by the City of Temecula in lieu
of contributions by the employees who are members of CalPERS.
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Section 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 of Temecula to CalPERS.
Section 4. That the City of Temecula shall pay to CalPERS 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.
Section 5. That the effective date for commencement of the pre-tax payroll
deduction plan cannot be any earlier than July 1, 1996, or the date the completed resolution is
received and approved in CalPERS, whichever is later.
Section 6. 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 Group who has elected to participate in this plan.
Section 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED, this 27th day of August, 1996.
Karel F. Lindemans, Mayor
A'FTEST:
Jun reek, CMC
City Clerk
[SEAL]
Resos%96-110 2
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) SS
CITY OF TEMECULA)
1, June S. Greek, City Clerk of the City of Temecula, do hereby certify that Resolution
No. 96-1 10 was duly and regularly adopted by the City Council of the City of Temecula at a
regular meeting thereof held on the 27th of August, 1996, by the following vote:
AYES: 5 COUNCILMEMBERS: Birdsall, Ford, Roberts, Stone,
Lindemans
NOES: 0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
@@e S. Greek, City Clerk
Resos\96-110 3