HomeMy WebLinkAboutRES 2011-47RESOLUTION NO. 2011- 47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DIAMOND BAR ADOPTING PROVISIONS OF
INTERNAL REVENUE CODE 414(H)(2) TO TAX DEFER
MEMBER PAID CONTRIBUTIONS TO CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the governing body of the City of Diamond Bar has the authority to
implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the City of Diamond Bar 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 full-time, permanent
part-time, and council members who are members of the California Public Employees'
Retirement System.
NOW, THEREFORE, BE IT RESOLVED:
1. That the City of Diamond Bar 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 of the 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 Diamond Bar to the California Public
Empioyees' Retirement System, 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 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 Diamond Bar to the
California Public Employees' Retirement System.
IV. That the City of Diamond Bar 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. Th at the amount of the contributions designated as employee contributions and
paid by the City of Diamond Bar 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 the City of
Diamond Bar to the California Public Employees' Retirement System shall be
treated for all purposes, other than taxation, in the same way that the member
contributions are treated by the California Public Employees' Retirement System.
PASSED, APPROVED, AND ADOPTED t ' 5th day of November, 2011.
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Ste ye, a or
I, Tommye A. Cribbins, City Clerk of the City of Diamond Bar, California, do hereby
certify that the foregoing Resolution was duly and regularly passed, approved and
adopted by the City Council of the City of Diamond Bar, California, at its regular meeting
held on the 15th day of November, 2011, by the following vote:
AYES: COUNCILMEMBERS:Hverett, Herrera, Tanaka
MPT/Chang, Pi/Tye
NOES: COUNCILMEMBERS:None
ABSENT: COUNCILMEMBERS:None
ABSTAIN: COUNCILMEMBERS:None
mmye A. Cribbins, City Clerk
2011-47