HomeMy WebLinkAbout07-27 - Approving Adoption of the CALPERS Employer Pickup Resolution (Pre-Tax Payroll Deduction Plan for Service Credit Purchases)RESOLUTION NO. 07-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, APPROVING THE
ADOPTION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM (CALPERS)
EMPLOYER PICKUP RESOLUTION, AUTHORIZING
THE IMPLEMENTATION OF A PRE-TAX PAYROLL
DEDUCTION PLAN FOR (CALPERS) SERVICE CREDIT
PURCHASES UNDER INTERNAL REVENUE CODE
SECTION 414(h)(2) FOR ALL EMPLOYEE GROUPS.
WHEREAS, the Board of Administration of the California Public
Employees' Retirement System (CaIPERS) 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 COSTA MESA 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 COSTA MESA elects to participate in the pre-tax
payroll deduction plan for all employees in the following CaIPERS coverage group(s):
Safety Fire Plan of the City of Costa Mesa
Safety Police Plan of the City of Costa Mesa
Miscellaneous Plan of the City of Costa Mesa
NOW, THEREFORE, BE IT RESOLVED:
That the CITY OF COSTA MESA 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 COSTA MESA to CaIPERS, although
designated as employee contributions, are being paid by the CITY OF COSTA
MESA in lieu of contributions by the employees who are members of CaIPERS.
III. 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 COSTA MESA to
CalPERS.
IV. That the CITY OF COSTA MESA 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 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 COSTA MESA 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(s) who have elected to participate
in this plan.
PASSED AND ADOPTED this 20th day of March, 2007.
ATTEST:
Juee Folcik, City Clerk
zL'
Allan R. Mansoor, Mayor
APPROVED AS TO FORM:
Kimberly 4611 Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 07-27 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 20th day of March, 2007, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: MANSOOR, BEVER, DIXON, FOLEY, LEECE
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 21St day of March, 2007. 4
J `IE FOLCI , CITY CLERK
(SEAL) .