HomeMy WebLinkAbout2007-068 RESOLUTION NO. 2007-068
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT
PURCHASES (CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employee's 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 Atascadero 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 member of
Ca1PERS; and
WHEREAS, the City of Atascadero elects to participate in the pre-tax payroll deduction
plan for all employees in the following Ca1PERS employee groups or classifications:
Safety and Miscellaneous
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero
SECTION 1. That the City of Atascadero 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 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 Ca1PERS 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.
SECTION 2. That the contributions made by the City of Atascadero to Ca1PERS, although
designated as employee contributions, are being paid by the City of Atascadero in lieu of
contributions by the employees who are members of Ca1PERS.
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 Atascadero to Ca1PERS.
SECTION 4. That the City of Atascadero 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.
SECTION 5. That the effective date for commencement of the pre-tax payroll deduction
plan cannot be any earlier than the date the completed resolution is received and approved by
CaIPERS.
City of Atascadero
Resolution No. 2007-068
Page 2of2
SECTION 6. That the governing body of the City of Atascadero 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 employee
groups or classifications who have elected to participate in this plan.
On motion by Council Member Clay and seconded by Council Member O'Malley, the
foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES: Council Members Beraud, Brennler, Clay, O'Malley and Mayor Luna
NOES: None
ABSENT: None
ADOPTED: July 24, 2007
C�TY OF ATASCAPERO
By:
Z Dr. George Luna, Mayor
Attest:
McClure Tor erson C.M.C. V
Marcia McC g
City Clerk
APPROVFD AS TO FORM:
Patrick L. Eight, City Attorney