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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
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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.
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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.
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Passed, approved and adopted this 6th day of September ,2005
ATTEST:
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City Clerk of the City of Arcadia
APPROVED AS TO FORM:
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City Attorney
yor of the City of Arcadia
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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
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City Clerk of the City of ia
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