HomeMy WebLinkAboutCC RESO 2009-290RESOLUTION NO. 2009 — 290
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
APPROVING TAX DEFERRED MEMBER PAID CONTRIBUTIONS UNDER
THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS)
WHEREAS, the City of National City has the authority to implement the
provisions of Section 4174(h)(2) of the Internal Revenue Code (IRC). Section 4174(h)(2) would
allow the City to deduct the employee paid portion of the Public Employees' Retirement System
on a tax deferred basis via payroll deduction. This tax benefit is offered by Internal Revenue
Code Section 414(h)(2) for members in CaIPERS. It allows the employees who pay member
contributions to defer State and federal taxes on their member contributions. This program is
called Employer Pick-up (EPU), and provides employees' contributions to be treated as
employer contributions for federal and State tax purposes; and
WHEREAS, the Board of Administration of the Public Employees' Retirement
System (CaIPERS) adopted its resolution regarding Section 4174(h)(2) on September 18, 1985;
and
WHEREAS, the Internal Revenue Service stated in December 1985, that the
implementation of the provisions of Section 4174(h)(2) IRC pursuant to the Resolution of the
Board of Administration would satisfy the legal requirements of Section 4174(h)(2) IRC; and
WHEREAS, the City Council has determined that even though the
implementation of the provisions of Section 4174(h)(2) IRC is not required by law, the tax
benefit offered by Section 4174(h)(2) IRC should be provided to its employees who are
members of the Public Employees' Retirement System.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City as follows:
1. That the City of National City will implement the provisions of Section 4174(h)(2)
Internal Revenue Code by making employee contributions pursuant to California Government
Code Section 20691 to the Public Employees' Retirement System on behalf of its employees
who are members of the Public Employees' Retirement System. "Employee contributions" shall
mean those contributions to the Public Employees' Retirement System that are deducted from
the salary of employees and are credited to individual employee's accounts pursuant to
California Government Code Section 20691.
2. That the contributions made by the City of National City to the Public Employees'
Retirement System, 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 the Public
Employees' Retirement System.
3. That 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 the Public
Employees' Retirement System.
4. That the City of National City shall pay to the Public Employees' Retirement
System the contributions designated as employee contributions from the same source of funds
as used in paying salaries.
Resolution No. 2009 — 290
December 15, 2009
Page 2
5. That the amount of the contributions designated as employee contributions and
paid by the City of National City to the Public Employees' Retirement System on behalf of an
employee shall be the entire contribution required of the employee by the Public Employees'
Retirement Law (California Government Code Sections 20000, et seq.)
6. That the contributions designated as employee contributions made by the City of
National City to the Public Employees' Retirement System shall be treated for all purposes,
other than taxation, in the same way that member contributions are treated by the Public
Employees' Retirement System.
PASSED and ADOPTED this 15th day of December, 2009.
on Morrison, Mayor
ATTEST:
w
Mich: el R. Dalla, 11 y Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
Passed and adopted by the Council of the City of National City, California, on
December 15, 2009 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
N d
City erk of the City f National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2009-290 of the City of National City, California, passed and
adopted by the Council of said City on December 15, 2009.
City Clerk of the City of National City, California
By:
Deputy