HomeMy WebLinkAboutReso 49-2004RESOLUTION NO. 49-2004
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING THE EMPLOYER PICKUP 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 South San Francisco 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 South San Francisco elects to participate in the pre-tax payroll
deduction plan for all employees in the following CalPERS coverage group(s):
Membership Coverage Groups:
70001 Miscellaneous/SS Exclusion
70002 Miscellaneous
74001 Fire/EMT
75001 Police
I. That the City of South San Francisco 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 fi.om 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 South San Francisco to CalPERS, although
designated as employee contributions, are being paid by the City of South San Francisco in
lieu of contributions by the employees who are members of CalPERS.
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 South San Francisco to
CalPERS.
IV. That the City of South San Francisco shall pay to CalPERS the contributions designated
as employee contributions fi.om 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 July 1, 1996, or the date the completed resolution is received and approved
in CalPERS, whichever is later.
VI. That the goveming body of the City of South San Francisco 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that the City Council hereby approves the Employer Pickup Pre-Tax Payroll
Deduction Plan for Service Credit Purchases (Contribution Code 14).
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a regular meeting held on the 9~ day of June 2004
by the following vote:
AYE S:
Councilmembers Joseph A. Femekes, Richard A. Garbarino, and Pedro Gonzalez,
and Vice Mayor Raymond L. Green
NOES: None.
ABSTAIN: None.
ABSENT:
Mayor Karyl MatsUmoto
ATTEST:
· - )City Clerk