HomeMy WebLinkAboutReso 2011-006 - IRC 414(H)(2)
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RESOLUTION NO. 2011 - 06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
TO TAX DEFER MEMBER PAID CONTRIBUTIONS - IRC 414(H)(2)
EMPLOYER PICK-UP
WHEREAS, the City Council as governing body of the City of Redding has the authority
to implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the City of Redding 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 All Employees who are members of the California Public
Employees' Retirement System:
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Redding will implement the provisions of section 414(h)(2) Internal
Revenue Code by making employee contributions pursuant to California Government Code
Section 20691 to the California Public Employees' Retirement System on behalf of all its
employees or all its employees in a recognized group or class of employment who are
members ofthe California Public Employees Retirement System. "Employee contributions"
shall mean those contributions to the Public Employees' Retirement System which are
deducted from the salary of employees and are credited to individual employee's accounts
pursuant to California Government Code section 20691.
II. That the contributions made by the City of Redding to the California Public
Employees' Retirement System, although designated as employee contributions, are being
paid by the City of Redding in lieu of contributions by the employees who are members of
the California Public Employees' Retirement System.
III. That employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the City of Redding to the California Public
Employees' Retirement System.
IV. That the City of Redding shall pay to the California Public Employees' Retirement
System the contributions designated as employee contributions from the same source of
funds as used in paying salary.
V. That the amount of the contributions designated as employee contributions and paid
by the City of Redding to the California Public Employees' Retirement System on behalf of
an employee shall be the entire contribution required of the employee by the California
Public Employees' Retirement Law (California Government Code Sections 20000, et seq.).
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VI. That the contributions designated as employee contributions made by City of Redding
to the California Public Employees' Retirement System shall be treated for all purposes, other
than taxation, in the same way that member contributions are treated by the California Public
Employees' Retirement System.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at
a regular meeting ofthe City Council on the 4th day of January, 2011, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Bosetti, Dickerson, Jones, Sullivan, and McArthur
None
None
None
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FORM APPROVED:
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BARRYE.DeWALT, Assistant City Attorney
FOR CALPERS USE ONLY
RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS .....IRC 414(h)(2)
Approved by:
Title: