HomeMy WebLinkAboutRES 97-74RESOLUTION 97- 74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DIAMOND BAR, CALIFORNIA, ESTABLISHING A
PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE
CREDIT PURCHASES THROUGH THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (Ca1PERS) 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 Diamond Bar 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 CalPERS; and
WHEREAS, the City of Diamond Bar elects to participate in the pre-tax payroll
deduction plan for all employees in the following Ca1PERS coverage group(s):
Miscellaneous - 70001
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Diamond Bar, California, as follows:
SECTION 1. That the City of Diamond Bar will implement the provisions of IRC
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 Ca1PERS 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 Ca1PERS which are
deducted from the salary of employees and are credited to individual employee accounts for
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service credit purchases thereby resulting in tax deferral of employee contributions.
SECTION 2. That the contributions made by the City of Diamond Bar to CalPERS,
although designated as employee contributions, are being paid by the City of Diamond Bar in
lieu of contributions by the employees who are members of CalPERS.
SECTION 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 Diamond Bar to
CalPERS.
SECTION 4. That the City of Diamond Bar shall pay to CalPERS 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.
SECTION 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 CalPERS, whichever is later.
SECTION 6. That the governing body of the City of Diamond Bar 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 CalPERS for those employees of the above stated
Coverage Group(s) who have elected to participate in this plan.
PASSED, APPROVED AND ADOPTED this 16th day of DecPmhar 1997.
LJii4e6�_
Mayor
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I, LYNDA BURGESS, City Clerk of the City of Diamond Bar do hereby certify that the
foregoing Resolution was passed, and approved and adopted at a regular meeting of the City
Council of the City of Diamond Bar held on the 16th day of Decembez 1997, by the
following vote:
AYES: COUNCIL MEMBERS:Ansari, Huff, O'Connor,
MPT/Chang, M/Herrera
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAINED: COUNCIL MEMBERS: None
ATTEST: �.,. - �� iXl� ���tt
LYNDX BURGESS, City Clerk of the
City of Diamond Bar
97-74