HomeMy WebLinkAboutReso 2008-038
RESOLUTION NO. 2008-038
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA IMPLEMENTING THE 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 4l4(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 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 CaIPERS, 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 CaIPERS.
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
CalPERS, whichever is later.
Resolution No. 2008-038
Page 2
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.
Presented by
Approved as to form by
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AmI Moore
City Attorney
Marcia Raskin
Human Resources Director
Resolution No. 2008-038
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 5th day of February 2008 by the following vote:
AYES:
Councilmembers:
Castaneda, McCann, Ramirez, Rindone, and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
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ATTEST:
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Donna R. Norris, ctMC, Interim City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certifY that the
foregoing Resolution No. 2008-038 was duly passed, approved, and adopted by the City Council
at a regular meeting of the Chula Vista City Council held on the 5th day of February 2008.
Executed this 5th day of February 2008.
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Donna R. Norris, CMC, Interim City Clerk