HomeMy WebLinkAboutCC RESO 2004 - 5RESOLUTION NO. 2004 — 5
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY APPROVING
THE PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
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 National City 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 member of CaIPERS; and
WHEREAS, the City of National City elects to participate in the pre-tax payroll
deduction plan for all employees in the following CaIPERS coverage groups:
ALL MISCELLANEOUS
ALL SAFETY
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby resolves and finds as follows:
1. That the City of National City 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.
2. That the contributions made by the City of National City to CaIPERS, although
designated as employee contributions, are being paid by the City of National 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 of National City to
CaIPERS.
4. That the City of National 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 pre-tax 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. 2004 — 5
January 20, 2004
Page Two
6. That the City Council of the City of National 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 CaIPERS for those employees of the above stated Coverage
Groups who have elected to participate in this plan
PASSED and ADOPTED this 20th day of January, 2004.
Nick. Inzu nzailayor
ATTEST:
4
Mic -el Dalla, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney