HomeMy WebLinkAbout102-Pre-Tax Resolution .pdfRESOLUTION 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 7th
day of December 2011, by the following vote:
AYES:
NAYES:
ABSTAIN:
ABSENT:
_________________________
Howard A. Miller, Mayor
ATTEST:
_______________________ Date:___________________
Crystal 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: ______________________________