HomeMy WebLinkAbout6939_CCv0001.pdf RESOLUTION NO. 6939
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
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(Ca1PERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service
credit purchases under Internal Revenue Code (IRC) section 414(h)(2); and
WHEREAS,the City of Redlands 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 CalPERS;
and
WHEREAS,the City of Redlands elects to participate in the pre-tax payroll deduction plan for
all employees in the 70002 Miscellaneous Employees with Social Security MOD CalPERS Coverage
Group;
NOW, THEREFORE, BE IT RESOLVED. By the City Council of the City of Redlands as
follows:
L That the City of Redlands 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.
IL That the contributions made by the City of Redlands to CalPERS, although designated as
employee contributions, are being paid by the City of Redlands in lieu of contributions by the
employees who are members of CalPERS.
111. 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 Redlands to CalPERS.
IV. That the City of Redlands 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.
V. That the effective date for commencement of the pre-tax payroll deduction plan cannot be any
earlier than the date this completed resolution is received and approved by CalPERS.
VI.That the City Council of the City of Redlands 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 CalPERS for those employees of the above stated Coverage Group who have
elected to participate in this plan.
ADOPTED, SIGNED AND APPROVED this 18th day of May, 2010.
Mayor of the City of Redlands
ATTEST:
City Clerk of th City Redlands
I, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution
No. 6939 was duly adopted by the City Council at a regular meeting thereof, held on the 18th day of
May 2010, by the following vote:
AYES: Councilmembers Bean, Harrison, Gallagher,Aguilar; Mayor Gilbreath
NOES: None
ABSENT: None
ABSTAIN: None
Sam Irwin, City Clerk
Redlands, California