HomeMy WebLinkAboutCity Council Resolution 11-077 RESOLUTION 11 -077
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA
TO TAX DEFER MEMBER PAID CONTRIBUTIONS IRC 414(H)(2)
EMPLOYER PICK -UP
WHEREAS, the governing body of the City of Saratoga has the authority to
implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the City of Saratoga 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 Employees who are
members of the California Public Employees' Retirement System:
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Saratoga 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 Saratoga to the California Public
Employees' Retirement System, although designated as employee contributions,
are being paid by the City of Saratoga 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 Saratoga to the
California Public Employees' Retirement System.
IV. That the City of Saratoga 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. That the amount of the contributions designated as employee contributions and
paid by the City of Saratoga 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.).
VI. That the contributions designated as employee contributions made by City of
Saratoga to the California Public Employees' Retirement System shall be treated
for all purposes, other than taxation, in the same way that member contributions
are treated by the California Public Employees' Retirement System.
The above and foregoing resolution was passed and adopted by the Saratoga City Council
at a regular meeting held on the 7 day of December 2011, by the following vote:
AYES: Council Member Manny Cappello, Emily Lo, Howard Miller, Vice
Mayor Jill Hunter, Mayor Chuck Page
NOES: None
ABSENT: None
ABSTAIN: None I
Chuck Page, Mayor
ATTEST: ,�y�
a I N VU1 I YV Date: qq--7011
Crys 41 Morrow,
City Clerk
RETURN ADDRESS:
City of Saratoga
13777 Fruitvale Ave
Saratoga, CA 95070
FOR CALPERS USE ONLY
RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS IRC 414(h)(2)
Approved by:
Title: