HomeMy WebLinkAbout2000-11-21; City Council; Resolution 2000-347l *
1
2
3
4
5
6
7
a
9
10
11
12
13
14
15
16
17
la
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 30300-347
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, GRANTING A PRE-TAX
PAYROLL DEDUCTION PLAN FOR EMPLOYEES
PURCHASING SERVICE CREDIT FROM CALPERS.
WHEREAS, the City of Carlsbad is a contracting public agency of the California
Public Employees’ Retirement System; and
WHEREAS, the Board of Administration of the California Public Employees’
Retirement System (CalPERS) 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 Carlsbad has the authority to implement the provisions of
[RC 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 Carlsbad elects to participate in the pre-tax payroll
deduction plan for all employees in the following CalPERS coverage group(s):
l Miscellaneous
l Fire
l Police
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
clarlsbad, California, as follows:
1. That the City of Carlsbad will implement the provisions of IRC section
~1414 (h)(2) by making employee contributions for service credit purchases
a
l ,
1
2
3
4
5
6
7
a
9
10
11
12
13
14
15
16
17
la
19
20
21
22
23
24
25
26
27
28
pursuant to the California State Government Code on behalf of its employees who are
members of CalPERS 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 CalPERS 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.
2. That the contributions made by the City of Carlsbad to CalPERS, although
designated as employee contributions, are being paid by the City of Carlsbad in lieu of
contributions by the employees who are members of CalPERS.
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 Carlsbad to
CalPERS .
4. That the City of Carlsbad 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 employees contributions.
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.
Ill
Ill
Ill
I//
1
6. 2 That the governing body of the City of Carlsbad shall participate in and
3 adhere to requirements and restrictions of the pre-tax deduction plan by reporting pre-tax
4 deductions when authorized by CalPERS for those employees of the above stated
5 Coverage Group(s) who have elected to participate in this plan.
6 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad
10
11
12
13
14
15
16
17
la
19
20
21
22
City Council held on the 21ST day of November
wit:
,2000, by the following vote, to
AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin. A
NOES: None
ABSENT: None
ATTES : >
(SEW
23
II 24
25
26
/I 27
28