HomeMy WebLinkAbout18940 - RESOLUTIONS - 12/4/1996 Return to CaIPERS-Unit 830
Employer Code: 0355
RESOLUTION 18940
EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN
' FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION 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 has determined that even though imple-
mentation is not required by law, the tax benefit offered by this section should
be provided to those employees who are members of CaIPERS; and
WHEREAS, the City of Palm Springs, California (Employer) 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
CAPERS; and
WHEREAS , the City of Palm Springs, California (Employer) elects to
participate in the pre-tax payroll deduction plan for all employees in the
following CaIPERS coverage group(s):
(Membership Coverage Group(s))
Police Safety
Fire Safety
Miscellaneous
NOW, THEREFORE, BE PI RESOLVED:
I. That the City of Palm Springs, California (Employer) will implement the
provisions of IRC section 414 (h)(2) by making employee contributions
for service credit purchases pursuant to the California State Govern-
ment 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 contri-
butions.
II. That the contributions made by the City of Palm Springs, California
(Employer) to Ca1PERS,although designated as employee contributions,
are being paid by the City of Palm Springs {Employer) in lieu of
contributions by the employees who are members of CaIPERS.
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
Palm Springs {Employer) to CaIPERS.
IV. That the City of Palm Springs, California {Employer) shall pay to
CaIPERS the contributions designated as employee contributions from
the same source of funds as used in paying salary, thereby resulting in
Lax deferral or employee contributions.
V. That the effective date for commencement of the pre-tax payroll deduc-
tion plan cannot be any earlier than July 1, 1996, or the date the com-
pleted resolution is received and approved in CaIPERS, whichever is
later.
Res. No. 18940
Page 2
V[.
That the governing body of the City of Palm Springs, California {Employer} shall '
participate in and adhere to ro4uirements 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.
ADOPTED this 4th day of December, 1996
AYES: Members Hodges, Oden and Mayor Kleindienst
NOES: None
ABSENT: Member Barnes and Spurgin-
_
BY.
City Clerk _ City Man ger
December r 44,_1996
(Date adopted and approved)
RETURN ADDRESS:
FOR CAILPERS USE ONLY
Pre-tax Payroll Deduction Plan Effective
Date:
Approved by:.----
Title:
MEMBER SERVICES DIVISION, Service Credit Section - Unit 830