HomeMy WebLinkAboutCity Council Resolution 05-056Return to CaIPERS -Unit 830
05-056 Employer code: 0452
EMPLOYER PICKUP RESOLUTION
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 apre-tax payroll deduction plan for
service credit purchases under Internal Revenue Code (IRC) section 414(h)(2); and
WHEREAS, the city of Saratoga {Employer} 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 of CaIPERS; and
WHEREAS, the City of Saratoga {Employer} elects to participate
in the pre-tax payroll deduction plan for all
group(s):
employees in the following CaIPERS coverage
{Membership Coverage Group(s)}
All Miscellaneous Coverage Grouns
NOW, THEREFORE, BE IT RESOLVED:
That the city of saratoga {Employer} 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 CaIPERS 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 CaIPERS 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.
II. That the contributions made by the City of Saratoga
{Employer} to CaIPERS, although designated as employee contributions, are being paid by
the City of saratoga {Employer} in lieu of contributions by the
employees who are members of CaIPERS.
II I. 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 Saratoga {Employer} to CaIPERS.
IV.That the city of Saratoga {Employer} shall pay to CaIPERS 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.
V. 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 CaIPERS, whichever is later.
VI.That the governing body of the city of Saratoga {Employer}
shall participate in and adhere to requirements and restrictions of the pre-tax payroll
deduction plan by reporting pre-tax payroll deductions when authorized by CaIPERS for
those employees of the above stated Coverage Group(s) who have elected to participate in
this plan.
PASSED AND ADOPTED by the governing body of the city of Saratoga
{Employer} this 7th day of September 2005 . {year}
(Signature o Official)
/~ `~i l ceh J'/~ /S i`~a'
May r
RETURN ADDRESS: (Title of Official)
City of Saratoga
13777 Fruitvale Avenue
Saratoga, CA 95070
FOR CALPERS USE ONLY
Pre-tax Pa roll Deduction Plan Effective Date:
A roved b Title:
MEMBER SERVICES DIVISION, Service Credit Section -Unit 830