HomeMy WebLinkAboutReso 26-1994RESOLUTION NO. 26-94
CITY CGUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
~ A RESOLUTION IMPLEMENTING A TAX BENEFIT
~ OFFERED BY SECTION 414(h)(2) OF THE INTERNAL
i REVENUE CODE (IRC) FOR EXECUTIVE MANAGEMENT
AND POLICE ASSOCIATION EMPLOYEES
WHEREAS, the City of South San Francisco has the authority to
implemen~ 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 re Section 414(h) (2) IRC
on September 18, 1985; and
wHEREAs, the Internal Revenue Service has stated on December
6, 1985,i 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 has determined that
even though the implementation of the provisions of Section
414(h) (2) IRC is not required by law, the tax benefit offered by
Section !414(h)(2) IRC should be provided to its Executive
ManagemeDt and Police Association employees who are members of the
Public Employees' Retirement System.
NOWi, THEREFORE, BE IT RESOLVED by the City Council of the City
of Southi San Francisco that:
1. The City will implement the provisions of Section
414(h) (21) Internal Revenue Code by making employee contributions
pursuantito California Government Code Section 20615 to the Public
EmployeeS' Retirement System on behalf of its Executive Management
and Police Association employees who are members of the Public
Employees' Retirement System. "Employee contributions" shall mean
those contributions to the Public Employees' Retirement System
which are deducted from the salary of employees who are credited to
individual employee's accounts pursuant to California Government
Code Section 20615.
2. i The contributions made by the City of South San Francisco
to the PUblic Employees' Retirement System, although designated as
employee! contributions, are being paid by the City of South San
Franciscio in lieu of contributions by the employees who are members
of the PUblic Employees' Retirement System.
shall no
amounts
San Fran
Executive Management and Police Association employees
t have the option of choosing to receive the contributed
directly instead of having them paid by the City of South
cisco to the Public Employees' Retirement System.
4. i The City of South San Francisco shall pay to the Public
Employees' Retirement System the contributions designated as
employeei contributions from the same source of funds as used in
paying salary.
5. The amount of the contributions designated as employee
contribu'~ions and paid by the City of South San Francisco to the
Public Employees' Retirement System on behalf of an employee shall
be the entire contribution required of the employee by the Public
EmployeeS' Retirement Law (California Government Code Sections
20000, seq.)
6. ! The contributions designated as employee contributions
made by ~he City of South San Francisco to the Public Employee's
Retiremeht system shall be treated for all purposes, other than
taxation~ in the same way that member contributions are treated by
the Public Employees' Retirement System.
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 9th day of
March , 1994 by the following vote.
AYES: i Councilmembers John R. Penna, Roberta Cerri Teglia,
, Robert Yee and Mayor Joseph A. Fernekes
NOES:
ABSTAIN:
ABSENT:
PERS.IRS
None
None
Councilmember Jack Draao
ATTEST:/~/~ ~~
City Clerk