HomeMy WebLinkAboutReso 78-1994 RESOLUTION NO. 78-94
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION EXTENDING THE MEMORANDUM OF
UNDERSTANDING (MOU) BETWEEN THE CITY OF
SOUTH SAN FRANCISCO AND AFSCME, LOCAL
1569 AFL-CIO AND AUTHORIZING IMPLEMENTATION
OF TAX BENEFIT IRC SECTION 414(h) (2)
WHEREAS, the City of South San Francisco has the authority to
implement the provisions of Section 414(h)(2) of the Internal
Revenue Code (IRC); and
WHEREAS, the Board of Administration of the Public Employees'
Retirement System adopted its resolution regarding Section
414(h) (2) IRC on September 18, 1985; and
WHEREAS, the Internal Revenue Service has stated on December
6, 1985, that the implementation of the provisions of Section
414(h)(2) IRC pursuant to the Resolution of the Board of
Administration would satisfy the legal requirements of Section
414(h) (2) IRC; and
WHEREAS, the City of South San Francisco and AFSCME - Local
1569 have agreed to adopt the tax benefit afforded by Internal
Revenue Code Section 414(h)(2)
WHEREAS, the City of South San Francisco has determined that
even though the implementation of the provisions of Section
414(h) (2) IRC is not required by law, the City has agreed to
provide it to the AFSCME - Local 1569 and, therefore, the tax
benefit offered by Section 414(h) (2) IRC should be provided to its
AFSCME - Local 1569 employees who are members of the Public
Employees Retirement System.
WHEREAS, the City of South San Francisco and AFSCME - Local
1569 have agreed that the seven percent (7%) PERS contribution
currently made on behalf of full-time employees will be shown as
part of the employee's base salary and the employee will then pay
the seven percent (7%) percent amount to PERS; and
WHEREAS, the City of South San Francisco and AFSCME - Local
1569 have further agreed that the current contract will remain in
full force until December 31, 1994 and will only be modified as set
forth in the MOU adopted herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of South San Francisco that:
1. The MOU between the City of South San Francisco and
AFSCME - Local 1569, a copy of which attached hereto as Exhibit A
and incorporated herein, is adopted and approved.
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 re§u]ar meeting held on the 22nd day of
June , 1994 by the following vote.
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmembers Jack Draqo, John R. Penna, Roberta Cerri TeQlia,
Robert Yee and Mayor Joseph A. Fernekes
None
None
None
Pcrs.AFS
2
PROPOSAL FOR AMENDED MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF SOUTH SAN FRANCISCO
AFSCME LOCAL 1569 AFL-CIO
This is to confirm the understanding reached with respect to the
MOU between the City of South San Francisco and AFSCME Local 1569
AFL-CIO covering the period July 1, 1993 - June 30, 1994.
It is agreed that the MOU is extended for a period of six (6)
months beginning on July 1, 1994 and continuing through December
31, 1994.
Ail terms and conditions of the MOU shall continue in full until
December 31, 1994 without change except for the following:
Eliminate Section 3 Retirement Benefits (I) C and D.
Insert the following new Section 3 (I) C to read:
C. IRS Tax Exemption for Full-Time Employees Only: The
City shall obtain a 414(h) (2) Tax Exemption from the
Internal Revenue Service granting a deferral from
federal withholding taxes of that portion of the
employees contribution to PERS being paid by the City
prior to the adoption of this MOU. The exemption will
be obtained for all full-time employees in the
bargaining unit. The seven percent (7%) employee PERS
contribution previously paid by the City, shall be paid
to the bargaining unit employee who shall then pay that
amount to PERS. For the purposes of calculating base
salary at retirement, employee shall have an increased
base salary that will include the total seven pe~ent
(7%) contribution to PERS. Attached hereto as _E~bit
A and incorporated herein is a listing of exampl~s~
the application of IRC 414(h) (2). ~'~
Insert the following new Section 3 (I) D to read~-~i~:~:il
D. IRS Tax Exemption for Part-Time Recrular/Gran~i
Funded Regular Employees Only: The City shall obtain a
414(h) (2) tax exemption from the Internal Revenue
Service granting a deferral from federal withholding
taxes of that portion of the employee's contribution to
PERS.
FOR THE CITY
FOR THE, ~-*~UNION* ~ { ,