HomeMy WebLinkAboutReso 58-2004RESOLUTION NO. 58-2004
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING AN EMPLOYER PICKUP PREZI'AX
PAYROLL DEDUCTION PI~X.N FOR SERVICES 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:
All Miscellaneous Coverage Groups
All Safety Coverage Groups
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of South San
Francisco as follows:
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 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 South San Francisco to CaIPERS, 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 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 July 1, 1996, or the date the completed resolution is received and approved in CalPERS,
whichever is later.
VI. That the governing 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.
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 14th day of July
2004 by the following vote:
AYES:
Councilmembers Joseph A. Femekes, Richard A. Garbarino, and Pedro Gonzalez,
and Vice Mayor Raymond L. Green and Mayor Kar~l Matsumoto
NOES: None.
ABSTAIN: None.
ABSENT: None.
ATTEST: