HomeMy WebLinkAboutCC RES 04-10RESOLUTION NO. 04-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, ADOPTING PRE-TAX PAYROLL
DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES
(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 purchases under Internal Revenue Code (IRC) section
414(h)(2); and
WHEREAS, the City of Tustin 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 Tustin elects to participate in the pre-tax payroll deduction
plan for all employees in the following CalPERS coverage group(s):
Membership Coverage Groups
75001
70001
NOW, THEREFORE, the City Council of the City of Tustin, California does hereby
resolve as follows:
SECTION 1. That the City of Tustin 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 Tustin to CalPERS, although
designated as employee contributions, are being paid by the City of Tustin 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
contribution amounts directly instead of having them paid by the City of Tustin to CalPERS.
SECTION 4. That the City of Tustin 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 referral of employee contributions.
Resolution No. 04-10
Page 1 of 2
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. The governing body of the City of Tustin 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 AND ADOPTED by the City Council of the City of Tustin at a regular
meeting held on the 20th of January, 2004.
ATTEST:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
i, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of the
City of Tustin is five; that the above and foregoing Resolution No. 04-10 was duly passed and
adopted at a regular meeting of the Tustin City Council, held on the 20 day of January, 2004,
by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STO KE--"T~,
City Clerk
KAWASHIMA, BONE, DAVERT, HAGEN (4)
NONE (0)
(o)
THOMAS (1)
Resolution No. 04-10
Page 2 of 2