HomeMy WebLinkAboutResolutionRESOLUTION 2011
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
APPROVING A PRE-TAX PAYROLL DEDUCTION
PLAN FOR SERVICE CREDIT PURCHASES
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (CaIPERS) at the April 19, 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 members 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 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.
i1. 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.
111. 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.
IV. 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.
V. 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
CaIPERS.
VI, That the governing body 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
Resolution No. 2011 —
Page Two
PASSED and ADOPTED this 15th day of March, 2011.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia G. Silva
City Attorney