CC Resolution 11052
RESOLUTION NO. 11052
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING EMPLOYER PICKUP OF A 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 Campbell 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 Campbell elects to participate in the pre-tax payroll deduction
plan for all employees in the following CalPERS Coverage Groups:
MISCELLANEOUS
SAFETY
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Campbell 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.
II. That the contributions made by the City of Campbell to CalPERS, although
designated as employee contributions, are being paid by the City of
Campbell in lieu of contributions by the employees who are members of
CaIPERS.
III. 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
Campbell to CaIPERS.
IV. That the City of Campbell 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.
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 Campbell 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 Groups who have elected
to participate in this plan.
PASSED AND ADOPTED this 16th day of June 2009, by the following roll call vote:
AYES:
Councilmembers:
Kotowski, Furtado, Baker, Low, Kennedy
NOES:
Councilmembers:
None
ABSENT:
Councilmembers:
None
APPROVED:
ATTEST:
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Anne Bybee, City Clerk