HomeMy WebLinkAbout2004-06-08 - RESOLUTIONS - PRE-TAX PAYROLL DEDUCTION PLAN (2)RESOLUTION NO. 04-73
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, PROVIDING FOR THE
EMPLOYER PICKUP RESOLUTION PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASE (CONTRIBUTION CODE 14)
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 purchase under Internal Revenue Code (IRC) section 414(h)(2); and
WHEREAS, the City of Santa Clarita 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 Santa Clarita elects to participate in the pre-tax payroll
deduction plan for all employees in the following CalPERS coverage group(s):
All Miscellaneous Groups
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve
as follows:
SECTION 1. That the City of Santa Clarita 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 contribution" shall mean those contributions reported to Ca1PERS which are
deducted from the salary of employees and are credited to individual employee accounts for
service credit purchase, thereby resulting in tax deferral of employee contributions.
SECTION 2. That the contributions made by the City of Santa Clarita to CalPERS,
although designated as employee contributions, are being paid by the City of Santa Clarita in lieu
of contributions by the employees who are members of CalPERS.
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 Santa Clarita to
CalPERS.
SECTION 4. That the City of Santa Clarita 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 Santa Clarita 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(s) who have elected to participate in this plan.
PASSED, APPROVED AND ADOPTED this 8a' day of June, 2004.
ATTEST:
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CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the 8`" day of June, 2004, by the following vote:
AYES: COUNCILMEMBERS: Ferry, McLean, Weste, Smyth, Kellar
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true
and correct copy of the original Resolution No. 04-73, adopted by the City Council of the City of
Santa Clarita, California on June 8, 2004, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this _ day of
,20—.
Sharon L. Dawson, CMC
City Clerk
By
Susan Coffman
Deputy City Clerk