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HomeMy WebLinkAbout6484 RESOLUTION NO. 6484 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING IMPLEMENTATION OF A 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 the Internal Revenue Code (IRC) section 414(h)(2); and WHEREAS, the City of Arcadia 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 ofCaIPERS; and WHEREAS, the City of Arcadia elects to participate in the pre-tax payroll deduction plan for all employees in the following CalPERS coverage group(s): 70001 - Miscellaneous Employees 74002 - Fire Employees 75002 - Police Employees 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: SECTION 1. That the City of Arcadia 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 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. SECTION 2. That the contributions made by the City of Arcadia to CaIPERS, although designated as employee contributions, are being paid by the City of Arcadia in lieu of contributions by the employees who are members ofCalPERS. 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 Arcadia to CaIPERS. 2 6484 SECTION 4. That the City of Arcadia 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 I, 1996, or the date the completed resolution is received and approved in CaIPERS, whichever is later. SECTION 6. That the governing body of the City of Arcadia shall participate in and adhere to the 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. SECTION 7. The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON NEXT PAGE] 3 6484 Passed, approved and adopted this 6th day of September ,2005 ATTEST: ~",AA ~ City Clerk of the City of Arcadia APPROVED AS TO FORM: ~e~ City Attorney yor of the City of Arcadia 4 6484 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, JAMES H. BARROWS, City Clerk of the City of Arcadia, hereby certifies that the foregoing Resolution No. 6484 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 6th day of September, 1005 and that said Resolution was adopted by the following vote, to wit: A YES: Council Mem!Jer Chandler, Kovacic, Marshall, Segal and Wuo NOES: None ABSENT: None ~ -,P-g ~ City Clerk of the City of ia 5 6484