HomeMy WebLinkAboutReso 1997-18634.,~- RESOLUTION NO. 18634
RESOLUTION OF THE CITY OF CHULA VISTA IMPLEMENTING
A PRE-TAX PAYROLL DEDUCTION PLAN FOR CALPERS
SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees' Retirement
System (CalPERS), 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 Chula Vista 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 Chula Vista elects to participate in the pre-tax payroll deduction
plan for all employees in the following CalPERS coverage group(s): Miscellaneous (70001);
Fire/EMT (74001); and Police (75001).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AS FOLLOWS:
1. The City of Chula Vista 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 are credited to individual
employee accounts for service credit purchases thereby resulting in a tax deferral of
employee contributions.
2. The contributions made by the City of Chula Vista to CalPERS, although designated as
employee contributions, are being paid by the City of Chula Vista in lieu of
contributions by the employees who are members of CalPERS.
3. The employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the City of Chula Vista to CalPERS.
4. The City of Chula Vista shall pay to CaIPERS the contributions designated as employee
contributions from the same source of funds as used in paying salary, thereby resulting
in a tax deferral of employee contributions.
5. 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.
6. The governing body of the City of Chula Vista 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 Groups who have elected to participate in this plan.
Resolution 18634
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Presented by Approved as to form
Teri Enos John . Kaheny
Risk Manager
Resolution 18634
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PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 22rid day of April, 1997, by the following vote:
AYES: Councilmembers: Moot, Padilia, Rindone, Salas, and Horton
NAYES' Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
~ Mayor
'~S lrley Horton,
ATTEST:
Bever~lyAAutt~elet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 18634 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 22nd day of April,
1997.
Executed this 22nd day of April, 1997.
Beverly ~.~Authelet, City Clerk ·
I ] I