HomeMy WebLinkAbout7527_CCv0001.pdf RESOLUTION NO. 7527
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS TO TAX DEFER
MEMBER PAID CONTRIBUTIONS —IRC 414(h)(2) EMPLOYER PICK-UP
WHEREAS, the City Council of the City of Redlands has the authority to implement the
provisions of section 414(h)(2) of the United States Internal Revenue Code (the"Code"); and
WHEREAS, the City Council of the City of Redlands has determined that even though the
implementation of the provisions of section 414(h)(2) of the Code is not required by law, the tax
benefit offered by section 414(h)(2)of the Code should be provided to all City employees who are
members of the California Public Employees' Retirement System; and
WHEREAS, section 414(h)(2) of the Code provides a special rule allowing employees'
member contributions to the California Public Employees' Retirement System to qualify for pre-
tax treatment, meaning that, although an affected employee will be paying the member
contribution from his or her own compensation, such member contributions will be deducted from
the employees' compensation on a tax-deferred basis, thereby reducing the affected employee's
gross taxable income, and
WHEREAS, the City Council of the City of Redlands wishes to adopt this resolution in
order to approve, ratify and clarify, in accordance with section 414(h)(2) of the Code, the City's
prior and present intent to designate amounts deducted from employees' compensation to fiend
benefits under the California Public Employees, Retirement System as pick up contributions for
tax purposes;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as
follows:
Section 1. That the City of Redlands will implement the provisions of section
414(h)(2) of the 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.
Section 2. That the contributions made by the City of Redlands to the California Public
Employees' Retirement System, although designated as employee contributions, are being paid by
the City of Redlands in lieu of contributions by the employees who are members of the California
Public Employees' Retirement System.
Section 3. That employees shall not have the option of choosing to receive the
contributed amounts directly instead of having thein paid by the City of Redlands to the
California Public Employees' Retirement System.
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Section 4. That the City of Redlands 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.
Section 5. That the amount of the contributions designated as employee contributions
and paid by the City of Redlands 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.)
Section 6. That the contributions designated as employee contributions made by the
City of Redlands 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 California
Public Employees' Retirement System.
ADOPTED, SIGNED AND APPROVED this 2nd day of June, 2015.
�au . Foster, Mayor
ATTEST:
Sam Irw , Ci y Clerk
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I, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was
adopted by the City Council at a regular meeting thereof held on the 2nd day of June, 2015 by
the following vote:
AYES: Councilmembers Harrison, Gilbreath, Barich, James; Mayor Foster
NOES: None
ABSTAIN: None
ABSENT: None
Sam Irwin, Cit ler
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