HomeMy WebLinkAboutReso 98-012 - Authorize Calif Public Empl Retirement System Pre-Tax Payroll Deduction Plan for Service Credit Purchases (Contribution Code 14) � '� • •
t
RESOLUTION NO. 98- 1 Z-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE
CREDIT PURCHASES (CONTRIBOTION 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 Redding 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
WH�REAS, the City of REdding elects to participate in the pre-tax payroll deduction plan
for all employees in the following Ca1PERS coverage groups:
Miscellancous 70001
Fire (Safety) 74002
Police (Safety) 75002
NOW, THER:EFORE, IT IS HEREBY RESOLVED:
1. That the City of Redding will implement thc provisions of 1RC 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 CaIPERS 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 CaIPERS 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.
2. That tbe contributions made by the City of Redding to Ca1PERS, although designated as
employee contributions, are being paid by the City of Redding in lieu of contributions by the
employees who are members of Ca1PERS.
3. 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 Reddmg to CaIPERS.
�
4. That the City of Redding shall pay to Ca1PERS 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. r�
�
��..
�
�� �� s •
.
5. 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
CaIPERS, whichever is later.
6. That the governing body of the City of Redding 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 CaIPERS for those employees of the above stated
Coverage Groups who have elected to participate in this plan.
I HEREBY CERTIFY that the foregoing Resolution was introduced, read, and adopted at
a regular meeting of the City Council of the City of Redding on the 3rd day of February, 1998, by the
following vote:
AYES: COUNCILMEMBERS: Anderson , Kehoe , McGeorge and Murray
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: N o n e
K N M RRA , M yor
ATTEST: FORM APPROVED:
,
' �&_`�����„ �'`� �<.�G�/� ' �
CON�.1I� STROHMAYE /C'�ty Clerk W. EONARD WIl!� ATE, City Attorney
D:AWORK\COUNC[L\PTP.S-PRi��,�'AX.w��t